bluebird bio Reports Significant Financial Decline, Net Loss Widens in Latest Quarter

bluebird bio, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in cash and cash equivalents, which fell to $70.7 million from $221.8 million at the end of 2023. Total current assets also decreased to $150.8 million from $281.7 million, while total assets dropped to $465.1 million from $619.2 million. Conversely, total current liabilities increased to $296.0 million from $200.1 million, resulting in a substantial decline in stockholders' equity, which turned negative at $(5.8 million) compared to $194.5 million previously.

For the three months ended September 30, 2024, bluebird bio reported total revenues of $10.6 million, down from $12.4 million in the same period of 2023. Product revenue specifically decreased to $10.6 million from $12.3 million, attributed to one fewer infusion during the quarter. The cost of product revenue increased to $11.8 million from $9.1 million, reflecting higher inventoriable expenses. Despite these challenges, the company reported a reduced net loss of $(60.8 million) for the quarter, an improvement from $(87.2 million) in the prior year.

For the nine months ended September 30, 2024, total revenue rose to $45.3 million, a significant increase from $21.7 million in 2023, driven by higher product sales. However, the net loss for this period also widened to $(212.0 million) from $(131.1 million) in the previous year, primarily due to increased operating expenses, which totaled $212.7 million, down from $250.2 million in 2023.

In terms of strategic developments, bluebird bio implemented a workforce reduction of approximately 25% in September 2024, resulting in a restructuring charge of $2.8 million. This move aims to lower cash operating expenses by about 20% by Q3 2025. The company also entered into a Loan and Security Agreement with Hercules Capital in March 2024, providing up to $175.0 million in debt financing, with the first tranche of $75.0 million already drawn.

The company continues to face substantial doubt regarding its ability to continue as a going concern, necessitating additional funding to execute its business plans. Management is exploring various financing options, including product sales and equity issuance, to address these challenges. The ongoing commercialization of its gene therapies—ZYNTEGLO, SKYSONA, and LYFGENIA—remains critical, with market acceptance and reimbursement from third-party payers being key factors for future revenue generation.