Carlyle and SK Capital to acquire bluebird bioCarlyle and SK Capital to acquire bluebird bio

Bluebird bio announced that that it has agreed to be acquired by global investment companies Carlyle and SK Capital Partners. The two investment firms will provide bluebird with capital to commercially deliver its three approved gene-therapy offerings, which are indicated for sickle cell disease, β-thalassemia, and cerebral adrenoleukodystrophy.

The agreement entitles shareholders to receive $3 per share in cash, with another $6.84 payable if certain sales milestones are achieved.

David Meek, former CEO of Mirati Therapeutics will take over as bluebird’s CEO after the deal closes, replacing current executive Andrew Obenshain.

In light of the deal, Obenshain said, “For more than a decade, bluebird has been at the forefront of gene therapy, delivering groundbreaking treatments to patients facing life-threatening genetic diseases.

“However, as our financial challenges mounted, it became clear that securing the right strategic partner was critical to maximizing value for our stockholders and ensuring the long-term future of our therapies. After an extensive review process, this acquisition represents the best path forward – maximizing value for stockholders and bringing significant capital, commercial expertise, and a commitment to provide more patients the opportunity to benefit from potentially transformative gene therapies.”

A windy flight for bluebird

Despite success in developing products that have achieved regulatory approval, bluebird has struggled to market its expensive gene therapies such as Lyfgenia (lovotibeglogene autotemcel) for sickle cell disease.

But as recently as November 2024 in its Q3 earnings call, the company expressed optimism about its commercialization efforts and future revenue while acknowledging the need to reach financial stability. The company announced 74 patient starts by the end of the year with 30 more scheduled for 2025. “This trajectory continues to support the potential path to cash flow break-even in the second half of 2025 as those starts convert to deliveries and infusions,” said Tom Klima, bluebird’s chief commercial and operating officer.

Unfortunately, structural changes and patient infusions weren’t enough to keep bluebird in flight as a public entity.