Bluebird Bio Gene Therapy Sells Itself to Carlyle and SK Capital

Bluebird Bio Sells Itself to Private Equity Firms for $30 Million

Bluebird Bio, a biotech firm that was once on the cusp of creating one-time treatments for genetic diseases, has sold itself to private equity firms Carlyle and SK Capital for approximately $30 million. The sale marks the end of Bluebird’s fall from its peak as one of the buzziest biotech firms to a company on the verge of running out of money.

The Rise and Fall of Bluebird Bio

For over 30 years, Bluebird has been at the forefront of creating one-time treatments that promised to cure genetic diseases. At one point, its market cap hovered around $9 billion as investors bought into the idea that the company could find success with its gene therapies. However, the company faced several scientific setbacks, separated its cancer work into another company, and fell into financial despair.

The Turning Point

The turning point came in 2018, when a patient who received Bluebird’s gene therapy for sickle-cell disease developed cancer. Bluebird concluded that its treatment did not cause the condition, but the revelation started a series of questions surrounding the safety of its DNA-altering treatments.

Challenges and Setbacks

Bluebird also faced pushback from European payers after pricing its gene therapy for blood disorder beta thalassemia, called Zynteglo, at $1.8 million per patient. The company withdrew the treatment from Europe in 2021, just two years after it was approved there. Bluebird said it would instead focus on the US, where it was preparing for the approval of Zynteglo for beta thalassemia, Lyfgenia for sickle cell disease, and another therapy Skysona for a rare brain disease called cerebral adrenoleukodystrophy.

Approval of Gene Therapies

All three of these gene therapies were approved in recent years, but none of them have been able to ease Bluebird’s financial woes. The company had been spending hundreds of millions of dollars a year. Offloading Bluebird’s cancer treatments into new company 2Seventy Bio also eliminated an important source of revenue.

The Sale

At last update in November, Bluebird said its cash would fund the company’s operations into the first quarter of this year. The sale marks a stark reversal of Bluebird’s past performance. The upfront price of about $30 million is a fraction of the $80 million Bluebird’s former CEO Nick Leschly made from selling the company’s stock during his time there.

Conclusion

Bluebird’s treatments could still change many lives. They just weren’t enough to change the company’s fate. The entire field is facing tough questions right now about whether companies can translate the promise of one-time treatments for rare diseases into viable businesses.

Frequently Asked Questions

Q: Why did Bluebird Bio sell itself?
A: Bluebird Bio sold itself to private equity firms Carlyle and SK Capital for approximately $30 million.

Q: What happened to Bluebird Bio’s stock price?
A: Bluebird’s stock price fell 40% on Friday after the company announced the sale.

Q: What is the future of Bluebird’s gene therapies?
A: Although Bluebird’s gene therapies were approved, they did not generate enough revenue to save the company. The company’s treatments could still change many lives, but they were not enough to change the company’s fate.