Blue Bird Bio Experimental Gene Therapy
Blue Bird Bio (BLUE) said that experimental gene therapy for blood disorders are probably not the cause of patient cancer. The announcement increases the popularity of BLUE leading to a rise in the stock prices.
The FDA has completed clinical trials of lentiglobin HGB-206 and HGB-210 for BCC and beta autotemcel HGB-207 mountain lodge and HGB-212 study for β-thalassemia. The FDA ended Blue Bird clinical trials with lentiglobin gene therapy for sickle cell anemia and beta-thalassemia after patients were diagnosed with acute myeloid leukemia. The news in February resulted in the worst fall experienced by the company over the last seven years.
Further analysis provided on Wednesday suggests that gene therapy did not cause cancer in patients, Blue Bird said. However, analysts were mixed about this news. Some have speculated that the stigma for cancer will hamper gene therapy for a long time.
Analysts Raise Price Targets After the News
Mizuho Securities analyst, Difay Yang was more optimistic about the report. The target price of BLUE rose from 34 to 69 and upgraded its rating to a Buy position.
Biobuds increased 8.12% after releasing an update on cases of acute myeloid leukemia (AML) reported in the lentiglobin gene therapy program for sickle cell disease (SCD). However, the stock price fell sharply last month after the company announced last month that it was discontinuing Phase I/II (HGB-206) and Phase III (HGB-210) studies of lentiglobin gene therapy for SCD (bb1111).
Lentiglobin gene therapy for SCD is an experimental treatment that is being studied as a possible treatment. The LentiGlobin Blue Bird Bioclinical Development Program for the Treatment of Sudden Cardiac Death includes a completed Phase I/II HGB-205 study, HGB-206 Phase I/II study, and HGB-210 Phase III study.