Bluebird Bio’s Success in Gene Editing
Despite its setbacks, Bluebird Bio has made remarkable progress in the field of gene editing. The company has successfully developed and brought to market three gene editing treatments. The first is Zynteglo, which addresses transfusion-dependent beta-thalassemia, a rare blood disease. The second is Skysona, a therapy for cerebral adrenoleukodystrophy, a rare neurodegenerative condition. The third is Lyfgenia, a recently approved treatment for sickle cell disease (SCD), another rare blood-related condition.
Profitability Challenges Ahead
While Bluebird Bio’s regulatory approvals are commendable, investors are primarily concerned with the company’s financial performance. Despite having Zynteglo and Skysona on the U.S. market for over a year, Bluebird Bio’s financial results have been lackluster. In the third quarter, the company generated only $12.4 million in revenue, a significant improvement from almost zero revenue in the same period of 2022. Bluebird Bio’s net loss per share also improved from $0.94 in the year-ago period to $0.66. However, gene editing treatments are intricate and require considerable time for administration, which contributes to the delay in revenue and earnings growth.
Obstacles to Overcome
Bluebird Bio’s newest product, Lyfgenia, is expected to face similar challenges as Zynteglo and Skysona. Generating consistent revenue will take time. Additionally, the recent approval of Casgevy, a rival gene editing therapy for SCD by the U.S. Food and Drug Administration, adds further competition. Casgevy, developed by a well-funded biotech giant, is priced lower than Lyfgenia at $2.2 million. Given these difficulties, it remains uncertain whether Bluebird Bio can achieve profitability in the near future.
Considering the risks involved, most investors may find better opportunities in the biotech sector. While investors with a high risk tolerance might consider small positions in Bluebird Bio, it is crucial to recognize the potential for the company’s shares to become practically worthless in the coming years.