Goldman: Bluebird Bio Is One Step Closer To A Sickle Cell Cure

Bluebird bio Inc BLUE's multiple myeloma therapy coud have a "disruptive impact" on treatment of the disease, according to Goldman Sachs.

The Analyst

Goldman Sachs' Salveen Richter maintains a Buy rating on bluebird's stock and raised the price target from $186 to $309.

The Thesis

Bluebird's CART bb2121 therapy is considered a "potentially curative approach in earlier-line settings, including 1L," Richter said in a Monday note. (See Richter's track record here.) 

"The data suggests a generational process improvement response in efficacy and that ongoing optimization of the LentiGlobin manufacturing process and treatment protocol could potentially cure SCD," Ricther said. "We currently model for LentiGlobin 2027 WW peak sales of $3.2bn and probability of success of 50 pecent (vs. 33 percent prior) in SCD."

LentiGlobin's profile in transfusion-dependent beta-thalassemia, or TDT, is durable out to 3 years, the analyst said.

Perhaps more important, it appears the company is on "the path to address" severe sickle cell disease with multiple catalysts ahead in 2018, Richter said, including:

• Clarity on LentiGlobin and Lenti-D regulatory filings in TDT and neurological disease CCALD. 
• The bb2121 therapy will shift into earlier-line (1L, 2L, 3L) settings in MM.
• Additional LentiGlobin in SCD results at the European Hematology Association meeting (June 14-17).
• The potential for new CART/TCR clinical entrants.

Price Action

Shares of bluebird were trading higher by nearly 24 percent at the time of publication Monday at $211.77. 

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