What happened
Shares of Bluebird Bio (BLUE -4.91%) were sinking 10.4% this week as of the market close on Thursday, according to data from S&P Global Market Intelligence. The decline came after the company announced on March 4, 2022, that Gina Consylman was stepping down as CFO. Bluebird also revealed in its 10-K filing on the same day that "there is substantial doubt regarding our ability to continue as a going concern."
So what
It's not unusual for a stock to drop when a top executive, especially the CEO or CFO, unexpectedly leaves. However, Bluebird's warning about its ability to remain in business certainly rattled investors even more.
Rumors of Bluebird's impending death might be exaggerated, though. CEO Andrew Obenshain even said in the company's fourth-quarter update, "2022 is set up to be a landmark year." He mentioned pending approval decisions from the U.S. Food and Drug Administration (FDA) for Bluebird's gene therapies in beta-thalassemia and cerebral adrenoleukodystrophy (CALD). Obenshain also noted that the company plans to file for FDA approval of lovo-cel in treating sickle cell disease in early 2023.
Cash isn't an immediate problem. Bluebird ended 2021 with $442 million in restricted cash, cash and cash equivalents, and marketable securities. It expects to burn less than $400 million in cash this year. However, the company will have to raise additional capital in the not-too-distant future. Bluebird stated in its Q4 press release that it's "exploring multiple financing opportunities, including plans for the sale of priority review vouchers."
Image source: Getty Images.
Now what
There are several dates this year for investors to mark on their calendars. An FDA advisory committee will likely meet to review Bluebird's filings for approvals of beti-cel and eli-cel on June 9 and June 10. The PDUFA date for the FDA's decision on approval of beti-cell in beta-thalassemia is Aug. 19. An approval decision on eli-cel in treating CALD is expected by Sept. 16.
