Shares in bluebird bio Inc (NASDAQ:BLUE) slumped to a close of $56.57 on Friday, down 13.29%, a day after the company’s presentations at its Gene Therapy Day.
About 4.14 million shares were traded, nearly four times bluebird’s average daily volume of 1.14 million shares.
Apart from tired bull liquidation, no other reason could be ascribed to the fall in the stock.
bluebird bio Inc (NASDAQ:BLUE) issues updates on LentiGlobin in β-thalassemia (TDT) and severe sickle cell disease (SCD)
“By incorporating manufacturing Process 2 into our LentiGlobin clinical trials, we believe we can achieve our ultimate goal of increasing hemoglobin production in patients treated with LentiGlobin drug product,” the company said.
“bluebird bio has recently modified the process by which the patient’s cells are transduced in LentiGlobin clinical studies with the addition of enhancers during the manufacturing process,” the company explained. “The goal of manufacturing Process 2 is to increase the percentage of cells successfully transduced, thereby increasing vector copy number (VCN) in the drug product that is given to the patient.”
In fact, in vitro data from Process 2 showed an average increase of approximately three-fold in vector-positive cells and VCN across all patient samples tested.
Analysts on bluebird bio Inc (NASDAQ:BLUE)
Goldman Sachs analyst Salveen Richter has a Buy on the stock and a price target of a huge $135.
Analysts at BTIG view the stock as a Buy and have now boosted their price target from $72 to $83. “We think that the combination of the new manufacturing process boosting drug potency along with a transfusion reduction endpoint, versus transfusion independence endpoint, greatly increases odds of clinical success,” BTIG said. “We forecast US approval by YE2019.”
Leerink Partners reiterated their Outperform rating and increased the price target from $67 to $80.
However, Cantor Fitzgerald stood apart from the crowd and downgraded the stock to Sell and chopped their price target from $42 to $37, citing the absence of catalysts.