BridgeBio Shares Plunge After it Details Out-Licensing Plans For 'Restructuring Initiative'

  • BridgeBio Pharma Inc BBIO estimates between $23 million to $25 million in restructuring-related costs, including write-offs of long-lived assets, severance and employee-related costs, and exit and other related costs.
  • “The restructuring initiative included, among other components, consolidation and rationalization of facilities, reprioritization of development programs, and the reduction of our workforce,” the company said.
  • In March, BridgeBio sold off fosdenopterin, an injection drug for molybdenum cofactor deficiency (MoCD) type A, a rare genetic disorder, to Sentynl Therapeutics, netting $10 million upfront in the deal.
  • The company is also looking to out-license six programs “due to the need to conserve capital and prioritize focused execution.
  • Those programs include two drugs in clinical trials — one for dystrophic epidermolysis bullosa, a condition in which people are missing a collagen protein in a Phase 2 extension study, and a topical PI3KA inhibitor for venous lymphatic malformations in Phase 1/2 study.
  • BridgeBio also said it plans to out-license its two preclinical AAV gene therapy programs – one for nonsyndromic hearing loss and one for classic galactosemia, an inherited condition in which people cannot digest a sugar found in milk. 
  • The final two programs BridgeBio is hoping to out-license are also still in preclinical studies.
  • The company held cash, cash equivalents, and marketable securities of $633.5 million, providing a cash runway into 2024.
  • Price Action: BBIO shares are down 14.21% at $7.37 during the market session on the last check Thursday.
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