Once high-flying Bluebird Bio sells itself to private equity after tough times for the gene therapy maker

Core Viewpoint - Bluebird Bio is being sold to private equity firms Carlyle and SK Capital for approximately $30 million, marking a significant decline from its previous status as a leading biotech firm [1] Company Summary - Bluebird's shareholders will receive$3 per share, with the potential for an additional $6.84 per share if its gene therapies achieve$600 million in sales within any 12-month period by the end of 2027 [2] - The company's market capitalization once reached around $9 billion, but has now fallen below$41 million due to scientific setbacks and financial difficulties [3] - A pivotal moment for Bluebird occurred in 2018 when a patient developed cancer after receiving its gene therapy for sickle-cell disease, raising safety concerns about its DNA-altering treatments [4] - Bluebird faced challenges in Europe after pricing its gene therapy Zynteglo at $1.8 million per patient, leading to its withdrawal from the European market in 2021 [5] - Despite recent approvals for three gene therapies, Bluebird has struggled financially, spending hundreds of millions annually and losing revenue after offloading its cancer treatments to a new company [6] - The sale of Bluebird represents a stark contrast to its past performance, with the sale price being a fraction of the former CEO's stock sales [7] Industry Summary - The gene therapy field is currently facing scrutiny regarding the ability to convert the promise of one-time treatments for rare diseases into sustainable business models [9] - Competing gene therapies, such as Vertex's Casgevy for sickle cell disease, have also experienced slow market launches, indicating broader challenges within the industry [9] - Despite the potential life-changing impact of Bluebird's treatments, they were insufficient to alter the company's trajectory [10]