Bluebird’s Struggles with Sickle Cell Gene Therapy Launch Impact Financial Stability

Slow Launch Impact:
Bluebird Bio's slow launch of its sickle cell disease gene therapy, Lyfgenia, has forced the company to rework its loan, putting its cash runway at risk.

Loan Agreement:
Bluebird signed a five-year term loan deal with Hercules Capital for up to $175 million to support the launch of Lyfgenia. The loan includes an initial $75 million tranche and additional tranches contingent on commercial milestones.

Financial Strain:
The slow uptake of Lyfgenia has led to a significant drop in Bluebird's stock price, down 18% due to the therapy's high wholesale acquisition price of $3.1 million.

Patient Enrollment:
Only four patients have started the process for receiving Lyfgenia, contributing to the financial strain and the need to rework the loan.

Cash Position:
Bluebird had $227 million in cash, cash equivalents, marketable securities, and restricted cash as of the third quarter of 2023, which would last through the second quarter of 2024.