bluebird (BLUE) Gets $175 Million Loan From Hercules, Shares Up

Funding and Financial Impact - bluebird bio, Inc. has secured a $175 million five-year term loan facility from Hercules Capital, which will extend the company's cash runway by two years [1][2] - The loan will be disbursed in four tranches, with the first tranche of $75 million drawn at closing, and two additional tranches of $25 million each contingent on achieving commercial milestones [1][2] - If all three tranches totaling $125 million are executed, the funding is expected to extend bluebird's cash runway through the first quarter of 2026 [1][2] Gene Therapy Developments - bluebird is focused on commercializing three gene therapies: Lyfgenia for sickle cell disease, Zynteglo for beta-thalassemia, and Skysona for cerebral adrenoleukodystrophy [1][2] - Zynteglo and Skysona received FDA approval in August and September 2022, respectively, and bluebird received Priority Review Vouchers (PRVs) for these approvals [2] - Lyfgenia was recently approved for treating sickle cell disease but carries a boxed warning for hematologic malignancy, necessitating close patient monitoring [3][4] Competitive Landscape - The approval of Vertex Pharmaceuticals and CRISPR Therapeutics' exagamglogene autotemcel (Casgevy) for sickle cell disease presents a competitive challenge for bluebird, as it utilizes novel genome editing technology [4][5] - bluebird has priced Lyfgenia at $3.1 million per dose, while the competing therapy is priced at $2.2 million per dose, potentially impacting market share [5] - bluebird did not receive a Rare Pediatric Disease Priority Review Voucher for Lyfgenia, which was anticipated based on previous approvals [5] Stock Performance - bluebird's shares have declined by 67.7% over the past year, contrasting with an 8% decline in the industry [2] - The stock faced pressure following an equity raise in December, where 83.3 million shares were offered at $1.50 per share [3]