Shares of biotechnology firm Bluebird Bio (BLUE) plunged 27.5% to close at $18.16 on Monday after the company reported disappointing financial results for the second quarter of 2021. Shares fell another 0.3% in extended trading hours.
Headquartered in Massachusetts, Bluebird develops cell and gene therapies for cancer and severe genetic diseases. (See Bluebird stock chart on TipRanks)
The company reported a net loss of $3.58 per share, wider than the year-ago loss of $0.36 per share and the Street’s estimate of a loss of $3.19 per share. Total revenues amounted to $7.47 million, significantly lower than analysts’ expectations of nearly $19.68 million and nearly $199 million reported in the second quarter of 2020.
Service revenue fell to $5.3 million from $78.4 million in the previous year. Collaborative arrangement revenue declined from $109.7 million to $1.7 million, and Royalty and other revenues totaled $488,000, down from $10.9 million.
Following the announcement of the second-quarter results, Bank of America Securities analyst Jason Gerberry maintained a Hold rating on the stock and lowered the price target to $22 from $41 (21.2% upside potential).
The analyst said, “While management noted during its quarterly earnings update that it doesn’t expect the CALD clinical hold to impact SCD and TDT, the firm’s point of sale adjustments reflect the potential for heightened regulatory scrutiny given previous clinical holds on those programs, as well as the market impact of the USAR event on physicians’ perception of Bluebird’s approach compared to competitors.”
Overall, the stock has a Hold consensus based on 2 Buys and 11 Holds. The average Bluebird Bio price target of $33.67 implies 85.4% upside potential. Shares of the company have lost 73.4% over the past year.
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