By Anna Bratulic
Bluebird bio is set to go private in a buyout by private equity firms Carlyle and SK Capital Partners, ending its turbulent run as a public company amid ongoing financial struggles.
Once seen as a trailblazer in the gene therapy space, bluebird has faced mounting challenges, including shuttering its European operations after failed pricing talks for its products, and a warning about its financial viability three years ago.
In 2024, it slashed about a quarter of its workforce to sustain key programmes, including its US$3.1-million sickle-cell disease (SCD) treatment Lyfgenia (lovotibeglogene autotemcel), which has lagged behind Vertex Pharmaceutical’s rival CRISPR-edited SCD gene therapy Casgevy (exagamglogene autotemcel). Both were approved by the FDA on the same day in late 2023.
Aside from Lyfgenia, bluebird also markets Zynteglo (betibeglogene autotemcel) for beta thalassemia and Skysona (elivaldogene autotemcel) for cerebral adrenoleukodystrophy. Those gene therapies carry price tags of US$2.8 million and US$3 million, respectively.
In November, bluebird revealed that despite encouraging signs of commercial progress for its gene therapy portfolio, it was still in a tight spot financially and would need more funds in order to avoid running out of cash by early 2025.
‘Only viable solution’
The acquisition follows a five-month strategic review by bluebird’s board, which determined that the company risked defaulting on its loan covenants without a significant capital infusion. The board unanimously approved the transaction as “the only viable solution to generate value for stockholders.”
Under the buyout deal, bluebird shareholders will receive US$3 per share in cash, valuing the company at close to US$30 million. An additional US$6.84 per share payout is contingent on its current product portfolio hitting at least US$600 million in sales per year prior to the end of 2027, potentially raising the deal’s total value to roughly $66.5 million.
That’s a far cry from a stock price of about US$144 per share in early 2018.
