After missing out on FDA PRV authorization, bluebird bio has announced a proposed public offering of common stock to raise $150m to aid its gene therapy launch.
This month, the US Food and Drug Administration (FDA) approved bluebird’s Lyfgenia (lovotibeglogene autotemcel) for the treatment of sickle cell disease (SCD), which will be made available by early 2024.
However, the firm did not receive a rare pediatric disease priority review voucher (PRV) as part of the agency’s review.
Bluebird had previously inked a deal worth $103 million to sell the PRV to Novartis. At the time, the company said that that “the potential sale of a PRV would provide an important source of non-dilutive capital for bluebird ahead of the anticipated launch of lovo-cel.” However, Novartis declined to comment on the matter. To support its gene therapy launch, the firm has taken a two-pronged approach to raise funds. It has commenced an underwritten public offering of $150 million with plans to provide the underwriters with an extra $22 million worth of its stocks.
Additionally, bluebird has collaboratedwith Alterna Capital Solutions to hand over future gene therapy r evenues in exchange for $100 million. Moreover, the firm is working with JP Morgan Securities and Goldman Sachs along with Raymond James & Associates acting as the co-manager.
With an aim to utilize the net proceeds of the offering to finance working capital and other general business purposes, bluebird also seeks to support the marketing and manufacture of three of its authorized gene treatments, Zynteglo, Skysona, and Lyfgenia. According to the firm, the offer is expected to close on or about December 22, 2023, subject to customary closing conditions. Bluebird did not respond when contacted by this publication.
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