bluebird bio Reports Quarterly Loss, Provides Clinical Updates

bluebird bio, Inc. (NASDAQ: BLUE) has reported a wider-than-expected loss for the fourth quarter of 2021. It is a biotechnology company that develops gene therapies for severe genetic disorders and cancer.

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Shares of the company increased 1% in the extended trading session on Friday after closing about 4% lower on the day.

Results in Detail

For 2021, bluebird reported a loss of $8.16 per share, compared with $9.02 per share in 2020. Net loss from continuing operations came in at $562.6 million, almost in line with the prior year. Revenues reported were $3.7 million.

The company reported a Q4 loss of $1.83 per share against the Street’s loss estimate of $1.82 per share. It recorded a loss of $2.05 per share in the same quarter last year. Net loss from continuing operations stood at $132.3 million, down 2.9%.

Total revenues generated during the quarter stood at $1.6 million. The biotech firm did not report revenue for the prior-year quarter.

Selling, general, and administrative expenses fell 34% year-over-year to $53.2 million, while research and development expenses stood at $79.4 million, up 35%.

As of December 31, 2021, the company’s restricted cash, cash, and cash equivalents and marketable securities balance was around $442 million, including restricted cash of around $46 million.

Pipeline Update

The CEO of bluebird, Andrew Obenshain, said, “2022 is set up to be a landmark year for bluebird bio, with LVV gene therapies for β-thalassemia and cerebral adrenoleukodystrophy under review by the U.S. Food and Drug Administration (FDA) and plans to submit a Biologics License Application (BLA) for lovo-cel for sickle cell disease (SCD) early next year.”

“Underscoring these significant milestones is a continued focus on commercialization and financial discipline to enable the delivery of these transformative therapies to patients and their families,” Obenshain added.

Wall Street’s Take

Overall, the stock has a Hold consensus rating based on 4 Holds and 1 Sell. The average bluebird price target of $12 implies 140% upside potential from current levels. BLUE shares have lost 72.66% over the past year.

Risk Analysis

According to the new TipRanks Risk Factors tool, the bluebird stock is at risk mainly from two factors: Finance & Corporate and Tech & Innovation, which contribute 17 and 14 risks, respectively. In total, 52 risks have been identified for the stock.

Bluebird is at a higher risk from a financial and a technical standpoint, than other companies in its industry. Given its higher-risk profile and current stock movements, investors might be wary about investing in this biotech.

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