Bluebird Bio price target lowered to $1.68 from $3 at Wedbush

Wedbush lowered the firm’s price target on Bluebird Bio (BLUE) to $1.68 from $3 and keeps a Neutral rating on the shares. The firm notes Bluebird secured up to $175M in debt financing from Hercules Capital (HTGC) structured in four tranches. For the first three years of the loan, payments are interest only. During the last two years of the 5-year term, any outstanding balance will be amortized over the remaining life of the loan. Assuming Bluebird accesses the first three tranches of the loan, the company believes it has a cash runway through Q1 2026. While the debt facility alleviates near-term financial uncertainty for Bluebird, Wedbush continues to question the viability of its SCD franchise.