Bluebird Bio price target lowered by $2 at Wedbush, here’s why

Wedbush analyst David Nierengarten lowered the firm’s price target on Bluebird Bio (BLUE) to $3 from $5 and keeps a Neutral rating on the shares. The firm notes FDA approved Lyfgenia, Bluebird’s cell-based gene therapy to treat patients with sickle cell disease, on Friday. On the same day, FDA approved Vertex’s (VRTX) SCD cell-based CRISPR gene therapy, Casgevy. Both approvals are for SCD patients 12 and older. Lygenia’s label includes a black box warning regarding risk of hematologic malignancy; Casgevy’s label does not include a black box. Bluebird priced Lyfgenia at $3.1M compared to Casgevy’s $2.2M price tag. Given the black box warning, Wedbush believes it will be difficult to justify this premium, as expects the net price to drop to Casgevy’s.