Summary
- bluebird bio's gene therapy, Zynteglo, gets the thumbs up on a conditional approval to treat patients with ß-thalassemia in the EU. However, it appears the company will have to wait.
- Despite the delayed launch, investors should be pleased with the company's progress in discovering, developing, and now launching their own products.
- I go over my previous position in BLUE and why I am looking to reenter after a year of being on the sidelines.
- I review the charts to identify key areas for potential and current investors looking to start or manage a position in BLUE.
bluebird bio (BLUE) was one of my best medium-term investments between February 2017 and March 2018. Since then, I have been patiently waiting to find a point to reenter the stock for a long-term investment as the company transitions into a commercial-stage company. The recent EU approval of Zynteglo, plus, recent biotech M&A has me looking for entry into one of my former winners.
I intend to review my previous experience with BLUE and why I decided to return to this cutting-edge biotech company. In addition, I take a look at the charts to identify some critical areas for investors looking to start a position. Finally, I discuss some of the potential hurdles and downside risks the company might face as they attempt to commercialize their gene therapies.
Company Overview
bluebird bio a clinical-stage biotech company that concentrates on evolving gene therapies for devastating genetic disorders and cancer. The company's flagship gene therapy product is LentiGlobin, which is in numerous clinical trials for the cure of transfusion-dependent ß-thalassemia and severe sickle cell disease. Lenti-D is in Phase II/III trials for the management of cerebral adrenoleukodystrophy. bluebird's oncology products are CAR-T therapies (bb2121 and bb21217) that are taking aim at multiple myeloma (Figure 1).
Figure 1: bluebird Pipeline (source: BLUE)
One of the most enticing aspects of bluebird is the quantity and quality of strategic collaborations. The company has a collaboration with Celgene (CELG) to discover, develop, and commercialize CAR-T therapies in oncology indications. The company has another promising partnership with Regeneron Pharmaceuticals (REGN) for antibody and T-cell therapies in oncology indications. Another notable collaboration is with Medigene AG (OTCPK:MDGEF) for T-cell receptor ("TCR") product candidates in oncology. Other collaborations also include Gritstone Oncology (NASDAQ:GRTS) for TCR and TC BioPharm to develop gamma delta CAR-T therapy for hematologic and solid tumor indications.
