Bluebird Bio’s Fall from Grace: Gene Therapy Pioneer Sells for $29M After $10B Valuation

Bluebird Bio, once valued at $10 billion, has agreed to be acquired by private equity firms Carlyle and SK Capital for approximately $29 million1 2.

Shareholders will receive $3 per share in cash, with a potential additional $6.84 per share if the company's product portfolio reaches $600 million in net sales within a specified timeframe1 5.

The company's stock price plummeted 42% following the announcement, reflecting investor disappointment5.

Bluebird Bio has faced significant financial challenges, including the risk of defaulting on loan covenants, which led to the board's decision to sell1.

The acquisition will take Bluebird Bio private, with plans to delist its stock from public markets2.

David Meek, former CEO of Mirati Therapeutics and Ipsen, is set to become the new CEO of Bluebird Bio after the transaction closes1 4.

The private equity firms plan to inject fresh capital to scale operations and expand patient access to Bluebird's gene therapies for sickle cell disease, β-thalassemia, and cerebral adrenoleukodystrophy2 4.

Bluebird Bio's decline is partly attributed to setbacks in its gene therapy programs, including safety concerns and pricing challenges in Europe9.

The sale marks a significant downturn for a company that was once considered a leader in the gene therapy field9 10.

The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions8.