Bluebird Bio Now Worth $213/Share, Piper Jaffray Says

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In a report published Tuesday, Piper Jaffray analysts maintained their Overweight rating on bluebird bio, Inc. BLUE, while raising the price target from $186 to $213. The company remains a top mid-cap pick and the analysts expect significant upside to their estimates.

The first patient to be treated for Sickle Cell Disease with the company's LentiGlobin is in the process of being weaned off blood transfusions. The analysts believe that this indicates that the patient is essentially cured of the ailment.

"We doubt BLUE will cure 100 percent of SCD patients with LentiGlobin, but we do believe a majority will have their disease effectively eliminated," the analysts said, while adding that there were two key factors that would determine success. "The first is the transfection rate of cells and the second is the chimerism achieved with myeloablation."

The analysts believe that as the company continues to learn more about how to ensure the success of transfection and myeloablation, the risk of treatment failure will decline further. Once another patient is treated with LentiGlobin, the drug program is likely to accelerate.

"Given our improved understanding of the unique circumstance in which a patient wouldn't have a good response to LentiGlobin, we are increasing our likelihood of success," the analysts added.

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Posted In: Analyst ColorPrice TargetAnalyst RatingsPiper Jaffray
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