Bluebird bio, Inc. (BLUE) is taking steps to ensure its long-term financial stability. The company announced a restructuring plan on Tuesday, designed to optimize its cost structure and achieve quarterly cash flow break-even by the second half of 2025. This restructuring will involve a significant shift in operations, with a 20% reduction in cash operating expenses expected once fully implemented in the third quarter of 2025.
To achieve this goal, Bluebird Bio will be reducing its workforce by approximately 25%. The company’s cash flow break-even target relies on several key factors, including scaling up to approximately 40 drug product deliveries per quarter, realizing the full impact of the cost reduction measures, and securing additional cash resources to extend its financial runway.
Despite these changes, Bluebird Bio remains committed to the ongoing commercial launches of its gene therapies, LYFGENIA, ZYNTEGLO, and SKYSONA. The company plans to accelerate these launches while simultaneously exploring opportunities to bolster its cash reserves.
The restructuring comes at a time of significant progress for Bluebird Bio. In December 2023, the FDA approved Lyfgenia as the first cell-based gene therapy for sickle cell disease in patients 12 years and older. The company has reported strong patient start numbers, with 41 patients across its portfolio year-to-date, compared to 27 in mid-August. Bluebird anticipates approximately 40 patient starts in the fourth quarter of 2024.
Following the announcement, BLUE stock saw a 2.82% increase, trading at $0.50 at last check on Tuesday.
The restructuring plan reflects Bluebird Bio’s strategic approach to balancing its financial health with its commitment to developing and delivering innovative gene therapies. The company is actively pursuing strategies to ensure its long-term success and continue to make a positive impact on patients’ lives.
