Stock in Focus: bluebird bio, Inc. (BLUE)

Company Profile:

bluebird bio, Inc., a biotechnology company, researches, develops, and commercializes transformative gene therapies for severe genetic diseases. Its product candidates for severe genetic diseases include betibeglogene autotemcel for the treatment of transfusion-dependent ß-thalassemia; lovotibeglogene autotemcel for the treatment of sickle cell disease (SCD); and elivaldogene autotemcel to treat cerebral adrenoleukodystrophy. The company’s clinical study program includes HGB-205, HGB-206, and HGB-210 to evaluate the safety and efficacy of lovo-cel in the treatment of patients with SCD; and HGB-204, HGB-205, HGB-207, and HGB-212 to evaluate the safety and efficacy of beti-cel in the treatment of patients with ß-thalassemia. It has strategic collaboration and license agreements with Orchard Therapeutics Limited, Forty Seven, Inc., and Magenta Therapeutics, Inc. The company was formerly known as Genetix Pharmaceuticals, Inc., and changed its name to bluebird bio, Inc. in September 2010. bluebird bio, Inc. was incorporated in 1992 and is headquartered in Cambridge, Massachusetts.

Recent News:

On August 17, 2022, the company announced the U.S. Food and Drug Administration (FDA) has approved ZYNTEGLO® (betibeglogene autotemcel), also known as beti-cel, a one-time gene therapy custom-designed to treat the underlying genetic cause of beta‑thalassemia in adult and pediatric patients who require regular red blood cell (RBC) transfusions.

The company reported total revenue was $1.5 million for the three months ended June 30, 2022, compared to $0.1 million for the three months ended June 30, 2021. Net loss from continuing operations was $100.1 million for the three months ended June 30, 2022, compared to $155.8 million for the three months ended June 30, 2021.

The company announced that members of the management team will participate 2022 Wells Fargo Healthcare Conference, Thursday, September 8, at 9:10 a.m. ET at the Encore Boston Harbor, Everett, MA and Morgan Stanley 20th Annual Global Healthcare Conference, Tuesday, September 13, at the Sheraton New York, New York, NY.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects:

Price to Book Value – P/BV, a ratio used to compare book value to its current market price, to gauge whether a stock is valued properly.

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Price to Earnings – PE, the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

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Discounted cash flow – DCF, a valuation method used to estimate the value of an investment based on its expected future cash flows.

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Return on Assets – ROA, indicates how profitable a company is in relation to its total assets, how efficiently uses assets to generate a profit.

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Return on Equity – ROE, a measure of financial performance calculated by dividing net income by equity. a gauge of profitability and efficiency.

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Debt to Equity – evaluate financial leverage, reflects the ability of equity to cover outstanding debts in the event of a business downturn.

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Conclusion:

BLUE receives outperform rating in price to book value, discounted cash flow and Debt to Equity. Technical indicators signal the bullish signs, as there is a bullish crossover in the MACD and Stochastic oscillator, the RSI(14) stands at 63.4 with positive bias. We rate bluebird bio, Inc. (BLUE) a BUY.