Bluebird Bio Launches Restructuring to Optimize Costs and Achieve Quarterly Cash Flow Break-Even by Second Half of 2025

Following a thorough evaluation of its operations, bluebird bio, Inc. (Nasdaq: BLUE) has announced a restructuring plan aimed at optimizing its cost structure and achieving quarterly cash flow break-even by the second half of 2025. This restructuring is projected to lead to a 20% reduction in cash operating expenses by the third quarter of 2025 compared to previous reporting periods. The plan includes a workforce reduction of approximately 25%. To meet the cash flow break-even target, the company anticipates scaling to around 40 drug product deliveries each quarter, achieving the mentioned reduction in operating expenses, and securing additional cash resources to extend its financial runway.

“bluebird has set the standard for gene therapy for more than a decade, and we continue to lead the field in the commercial environment with three potentially transformative FDA-approved therapies,” stated Andrew Obenshain, the company’s CEO. “Today, we are taking decisive steps to optimize our cost structure and position the company for attracting the additional capital needed to tap into the significant commercial opportunity ahead. The decision to downsize our workforce was made after a comprehensive review of our organizational needs and capabilities. We remain grateful to all our employees who have contributed to our vision of making gene therapy accessible to patients and families affected by severe genetic diseases.”

As part of the restructuring, bluebird plans to concentrate on the commercial launches of its therapies including LYFGENIA, ZYNTEGLO, and SKYSONA to facilitate continued acceleration of these launches while also evaluating ways to enhance its cash resources. This year, there have been 41 patient initiations across bluebird’s portfolio, an increase from 27 reported in mid-August, and the company expects around 40 patient starts in the fourth quarter of 2024.

For those interested, bluebird bio will hold a conference call for analysts and investors today at 8:00 am ET. Participants can register in advance to obtain the dial-in number and unique PIN. Additionally, the live webcast of the presentation can be accessed through the “Events & Presentations” section on the company’s investor relations page, and a replay of the webcast will be available for 90 days after the event.