Is bluebird bio Inc. (BLUE) edging towards a correction?

A biotechnology company called Bluebird bio Inc. (BLUE) has dropped about 30% of its value since the start of 2021. Because of gene therapy trials that have failed over time, investors have been leery of these stocks. However, other developments in bluebird bio’s portfolio are promising as well.

Bluebird Bio has been developing T-cell CAR immunotherapy called Abecma in collaboration with Bristol Myers Squibb (NYSE: BMY). Clinical studies have shown a 50% reduction in tumor activity in nearly 73% of patients treated with the drug for recurrent or refractory multiple myeloma. The diseased tissue disappeared utterly in more than 30 % of the patients. It’s very encouraging that this study included patients who had already attempted at least three treatments with approved therapies without success. In March of this year, the FDA approved the drug, so bluebird bio and Bristol-Myers Squibb are ready to receive the proceeds (according to a shareholders agreement, it will be shared equally).

The Bluebird bio Inc. (BLUE) also has another emerging treatment – Skysona gene therapy for a one-time treatment, designed to treat early cerebral adrenoleukodystrophy (CALD) in patients under 18. More than 55,000 people have been diagnosed with this neurodegenerative disease in developed countries.

Skysona therapy has improved the functional abilities of 90% of patients for at least two years, and the most prolonged effects have lasted up to seven years in clinical trials. Skysona can cost hundreds of thousands of dollars if approved, which makes it appealing.

Accordingly, Bluebird bio Inc. (BLUE) bio possesses two promising drugs that can generate good sales. Bluebird Bio’s recent failure with the Zynteglo gene therapy (LentiGlobin) has put pressure on investors. Current clinical trials are taking place to determine whether the drug can treat sickle cell disease. It has been approved by the European Medicines Agency (EMA) for beta-thalassemia treatment. But bluebird bio has stopped selling Zynteglo in Europe after finding two possible cancers during an ongoing study. A thorough analysis of the issue has revealed that it is not cancer. Tests will resume in the coming months. Bluebird bio halted the commercialization of Zynteglo in Germany after regulators failed to negotiate a price with the company.

However, bluebird bio also has developments that are likely to generate valuable income, as mentioned above.

Bluebird bio Inc. (BLUE) shares rose by 1.67% to trade at $31.03 in the current market at closing. At the close of the previous session, BLUE’s stock was trading at $30.52. A total of 0.55 million shares were traded, which was below the average daily volume of 1.34 million shares in the most recent 50 days. BLUE shares have moved up by 5.44% within the past week, falling by -49.68% over the past 12 months. The stock gained 10.35% in the past three months but lost -27.38% over the past six months. Additionally, its market value currently stands at $2.04 billion, and its outstanding shares were 66.98 million.

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