Rare Daily Staff
Gene therapy biotech Bluebird Bio said it has entered into an agreement for a $75 million private placement of common stock and common stock equivalents with a healthcare investment fund selected as part of a competitive process.
Proceeds from the financing will support ongoing R&D and commercialization investments for Bluebird Bio and for 2Seventy Bio, which plan to launch as independent companies in October 2021. The closing of the private placement is expected to occur in September 2021, subject to the satisfaction of customary closing conditions.
“When combined with the approximately $900 million of cash expected at the time of separation, this $75 million equity investment further strengthens the starting financial position of both businesses,” said Nick Leschly, CEO of Bluebird Bio. “We look forward to sharing more detail on the innovative and transformative therapies being developed as well as the pipeline, milestones, and strategic outlook for both companies as we head into separation and beyond.”
In January, Bluebird bio said it planned to separate its severe genetic disease and oncology businesses into differentiated and independent publicly traded companies with Bluebird retaining its focus on severe genetic disease and the oncology business becoming a new entity.
Bluebird Bio’s focus remains on severe genetic diseases in three core areas: β-thalassemia, with EU-approved gene therapy Zynteglo, cerebral adrenoleukodystrophy, and sickle cell disease, in the United States and Europe, while 2seventy will support commercialization of its Bristol-Myers Squibb partnered cell therapy, ide-cel, in multiple myeloma and focus on advancing its pipeline of cellular therapies with a focus on non-Hodgkin’s lymphoma, acute myeloid leukemia, next-generation multiple myeloma and solid tumors.
The company plans to complete the spin-off of 2Seventy in October 2021, subject to customary conditions.
Photo: Nick Leschly, CEO of Bluebird Bio