RARE Daily

Bluebird Bio Raises Funds to Support Gene Therapy Launches

December 19, 2023

Rare Daily Staff

After missing out on a priority review voucher with the U.S. approval of its gene replacement therapy Lyfgenia for sickle cell disease, Bluebird Bio entered into a factoring agreement and turned to the public markets to raise much needed capital to support commercialization and manufacturing of its three approved gene therapies, Zynteglo, Skysona, and Lyfgenia.

In its approval letter, the U.S. Food and Drug Administration denied granting Bluebird a priority review voucher because Lyfgenia’s active ingredient was previously approved for Zynteglo.

In an SEC filing, Bluebird entered into a one year accounts receivable factoring agreement with Alterna Capital Solutions in which it can collect cash for its gene therapy products (Lyfgenia, Zynteglo, and Skysona) ahead of when it will be paid for them.

The factoring facility provides Bluebird access to up to $100 million on a revolving basis, measured by the outstanding balance of purchased accounts from time to time. Bluebird priced Lyfgenia at a wholesale price of $3.1 million.

Bluebird also commenced an underwritten public offering of $150 million worth of shares of its common stock and also intends to grant the underwriters a 30-day option to purchase up to an additional $22.5 million worth of shares.

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