Gene therapy pioneer Bluebird Bio sold to Carlyle & SK Capital investment firms

USA—Bluebird Bio, a once-promising pioneer in gene therapy, is set to be acquired by investment firms Carlyle and SK Capital Partners, marking the end of its challenging period as a publicly traded company.

This strategic move comes after several turbulent years during which the company struggled with financial instability, a sharp decline in its stock value, and growing concerns over cash flow.

Over the past few years, Bluebird Bio’s prospects had been increasingly overshadowed by mounting operational challenges.

For instance, on 21 February, the company’s shares dropped by 30% at market open, trading at just US$4.9 per share—a dramatic fall compared to its 2018 high of nearly US$150.

This steep decline reflected broader issues including high development costs and slower-than-expected market uptake of its innovative therapies.

Under the terms of the acquisition, Bluebird’s shareholders will receive US$3 per share in cash initially.

Moreover, they have the potential to earn an extra US$6.84 per share through a contingent value right (CVR).

 The CVR is linked to the company achieving net sales of US$600 million within any trailing 12-month period before the end of 2027.

In total, this arrangement values the deal at roughly US$29 million, and it is designed to infuse the necessary capital to sustain Bluebird’s gene therapy programs.

In addition to its stock performance issues, Bluebird’s financial troubles were compounded by its market decisions.

In 2021, the company withdrew from the European market for its therapies—Zynteglo and Skysona—after failing to secure reimbursement agreements in Europe.

 Zynteglo treats transfusion-dependent beta-thalassemia, while Skysona is for cerebral adrenoleukodystrophy.

After the exit, Bluebird concentrated on the U.S. market but faced financial pressures that led to major restructuring.

This included a 30% workforce cut in 2022 and another 25% in 2024, aiming to reduce operating expenses by about 20%.

Additionally, despite the promising development of its third gene therapy, Lyfgenia, intended for treating sickle cell disease, the company faced a major setback in 2023.

Bluebird anticipated securing a priority review voucher (PRV) for Lyfgenia, a valuable asset that had previously been arranged for a US$103 million sale to Novartis.

However, the FDA denied this request, stating that the active ingredient in Lyfgenia had already been used in Zynteglo, which had received a PRV earlier.

This unexpected blow forced Bluebird to explore alternative funding strategies, including a US$150 million public stock offering and up to US$100 million in financing through the sale of trade accounts receivable.

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