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On Tuesday, Bluebird bio, Inc. (NASDAQ:BLUE) announced it is implementing a restructuring intended to optimize its cost structure and enable quarterly cash flow break-even in the second half of 2025.
The restructuring is expected to result in a 20% reduction in cash operating expenses when fully realized in Q3 2025, compared to the prior reporting period.
The initiative includes a reduction in the company’s workforce of approximately 25%.
The company’s cash flow break-even target assumes scaling to approximately 40 drug product deliveries per quarter, realizing the 20% reduction in cash operating expenses, and obtaining additional cash resources to extend the company’s cash runway.
As part of the restructuring, Bluebird plans to focus further on the ongoing commercial launches of LYFGENIA, ZYNTEGLO, and SKYSONA to enable continued launch acceleration while the company evaluates opportunities to increase its cash resources.
In December 2023, the FDA approved Bluebird Bio’s Lyfgenia as the first cell-based gene therapy for sickle cell disease in patients 12 years and older.
Year-to-date, there have been 41 patient starts across Bluebird’s portfolio, up from 27 reported in mid-August. bluebird anticipates approximately 40 patient starts in the fourth quarter of 2024.
Price Action: BLUE stock is up 2.82% at $0.50 at last check Tuesday.
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This article Gene Therapy-Focused Bluebird Bio Restructures, Cuts Is Workforce By 25%, Seeks To Breakeven Next Year originally appeared on Benzinga.com
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