Analysts Weigh In On Amended bluebird bio/Celgene Deal

Bluebird bio Inc BLUE and Celgene Corp CELG announced a restructuring of their CAR-T collaboration this week. Under the amended terms of the deal, the collaboration will focus on CAR-T cells that target the B-cell maturation antigen (BCMA). Celgene will also provide $25 million in funding to bluebird.

What does Wall Street think of the new deal? Here’s a breakdown of what four firms had to say following the announcement.

Wedbush
Wedbush remains bullish on bluebird following the announcement, and expects the anti-BCMA collaboration to focus on multiple myeloma (MM). “BCMA is primarily expressed by plasma cells, with near universal expression in MM cells. Critically, with regards to preventing off-target toxicities, BCMA does not appear to be expressed in essential normal tissues,” analysts explain.

Wedbush maintains its Outperform rating and $222 price target for bluebird.

Bank of America
Bank of America analysts seem puzzled by the anti-BCMA amendment, but maintain high hopes for bluebird. “While it is not clear to us why the amendment took place, we remind investors that LentiGlobin is the main value driver, and we remain bullish on the prospect of the beta-thalassemia and sickle cell programs,” analysts add.

J.P. Morgan
J.P. Morgan analysts say that the amendment “has no impact on our thesis” when it comes to bluebird. J.P. Morgan has an Overweight rating on the stock and sees any weakness in upcoming days as a buying opportunity.

Roth
According to Roth analysts, “The change may be a reflection of the challenges that need to be addressed with CARTs, but it may also be a sign of bluebird’s growing confidence in its in-house expertise.” Roth echoes J.P. Morgan’s belief that any weakness in bluebird’s stock should be considered a buying opportunity.