bluebird bio Reports 135% Increase in Product Revenue, Widened Net Loss in Q2 2024

bluebird bio, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2024. The company experienced a notable increase in product revenue, which reached $16.1 million for the quarter, up from $6.9 million in the same period of 2023. This growth was primarily driven by increased sales of its gene therapy products, particularly ZYNTEGLO, which accounted for $11.2 million of the revenue in Q2 2024, compared to $4.2 million in Q2 2023.

Despite the revenue increase, bluebird bio reported a net loss of $81.4 million for the three months ended June 30, 2024, compared to a net loss of $62.8 million in the prior year. The loss from operations also widened to $(88.4) million from $(71.7) million, reflecting higher costs associated with product revenue, which rose to $28.9 million from $6.7 million year-over-year. Total operating expenses for the quarter were $75.5 million, an increase from $71.9 million in Q2 2023, driven by higher selling, general, and administrative expenses.

For the six months ended June 30, 2024, total revenue was $34.7 million, a substantial increase from $9.3 million in the same period of 2023. However, the net loss for the first half of 2024 was $151.2 million, significantly higher than the $43.9 million loss reported in the first half of 2023. The company’s accumulated deficit as of June 30, 2024, stood at $4.4 billion.

In terms of liquidity, bluebird bio reported cash and cash equivalents of $144.1 million as of June 30, 2024, down from $221.8 million at the end of 2023. The company has also increased its total current liabilities to $297.9 million, up from $200.1 million at the end of 2023, while total assets decreased to $545.2 million from $619.2 million.

Strategically, bluebird bio announced a workforce reduction of approximately 25%, equating to 94 employees, as part of a restructuring plan aimed at reducing cash operating expenses. This restructuring is expected to incur charges between $3.3 million to $3.7 million for severance and related costs. The company also entered into a five-year term loan facility agreement with Hercules Capital for up to $175 million, with the first tranche of $75 million already drawn.

The company continues to face challenges, including ongoing legal proceedings and the need for additional funding to support its operations and commercialization efforts. The management has expressed substantial doubt regarding the company's ability to continue as a going concern within the next year, emphasizing the need for effective cost control and exploration of financing options.