Market Overview

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

Share:
Goldman: Bluebird Bio Is One Step Closer To A Sickle Cell Cure
Related BLUE
Jim Cramer Weighs In On Alibaba, Nucor, Total And More
The Daily Biotech Pulse: Biohaven In-Licenses Drug, Retrophin's Debt Offering, ProQR And Bluebird Report Positive Trial Results

Bluebird bio Inc (NASDAQ: 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. 

Related Links:

9 Notable Biotechs Presenting At This Year's ASH Meeting

After Data Release, Cantor Fitzgerald Doubles Bluebird Bio Price Target

Latest Ratings for BLUE

DateFirmActionFromTo
Oct 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight
Jun 2018Evercore ISI GroupUpgradesIn-LineOutperform
May 2018PiperJaffrayAssumesOverweightOverweight

View More Analyst Ratings for BLUE
View the Latest Analyst Ratings

Posted-In: ASH bb2121Analyst Color Health Care Price Target Reiteration Analyst Ratings General Best of Benzinga

 

Related Articles (BLUE)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AAPLWedbushInitiates Coverage On310.0
DHTJP MorganUpgrades0.0
DISBarclaysUpgrades130.0
DXCMGoldman SachsUpgrades125.0
ORLYJP MorganUpgrades398.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Applied Industrial Poised On Solid Operations, Buyout Gains

Petrobras To Counter Competition With Revised LPG Pricing