bluebird bio Reports Fiscal Second Quarter 2014 Financial Results

  bluebird bio Reports Fiscal Second Quarter 2014 Financial Results

Business Wire

CAMBRIDGE, Mass. -- August 12, 2014

bluebird bio, Inc. (Nasdaq: BLUE), a clinical-stage company committed to
developing potentially transformative gene therapies for severe genetic and
orphan diseases, today reported financial results and operational highlights
for the quarter ended June 30, 2014.

"The second quarter of 2014 has been very productive for bluebird bio," said
Nick Leschly, chief bluebird. "In June, we presented some very encouraging
clinical data on our LentiGlobin product candidate for beta-thalassemia at the
EHA conference in Milan, Italy. Also in June, we broadened our technology
platform through the acquisition of Pregenen, a gene editing company, and in
July we completed a $110 million stock offering, strengthening our balance
sheet and allowing us to drive forward all our programs.”

Second Quarter 2014 and Recent Business Highlights:

-- Added Mark Vachon to the bluebird bio Board of Directors. Mr Vachon has
spent over 30 years at General Electric (NYSE: GE) in various management
roles, including as the CEO of GE Healthcare Americas

-- Granted orphan drug status by the FDA and the EMA for our LentiGlobin
product candidate for the treatment for sickle cell disease

-- Completed a public offering of common stock raising approximately $109.8
million, net of underwriting discounts, commissions and offering expenses

-- Acquired Precision Genome Engineering, Inc., or Pregenen, a privately held
biotechnology company based in Seattle, Washington and focused on the
development of gene editing and cell signaling technologies

-- Presented preliminary clinical results from our ongoing, phase 1/2 HGB-205
Study of our LentiGlobin product candidate for the treatment of
beta-thalassemia major at the 19^th European Hematology Association Congress
held in Milan, Italy

Anticipated 2014 Milestones:

-- Present further clinical results in beta-thalassemia major from our HGB-205
and Northstar Studies in late 2014

-- Transplant our first sickle cell disease patient with our LentiGlobin
product candidate

Financial Results:

bluebird bio held $175.7 million in cash and cash equivalents as of June 30,
2014. In July 2014, bluebird bio completed a public offering of common stock
and raised approximately $109.8 million of additional net proceeds.

Total revenue was $6.3 million during the three months ended June 30, 2014,
compared to $6.3 million for the three months ended June 30, 2013. Total
revenue is primarily comprised of collaborative revenue from bluebird bio’s
collaboration with Celgene Corporation.

Total operating expenses for the three months ended June 30, 2014 were $19.7
million as compared to $10.5 million for the three months ended June 30, 2013.

bluebird bio reported a net loss of $1.5 million, or $0.06 per share, for the
three months ended June 30, 2014, as compared to net loss of $4.6 million, or
$2.13 per share, for the three months ended June 30, 2013. In the second
quarter of 2014, bluebird bio reported an $11.8 million income tax benefit in
conjunction with the acquisition of Pregenen.

About bluebird bio, Inc.

bluebird bio is a clinical-stage company committed to developing potentially
transformative gene therapies for severe genetic and orphan diseases. bluebird
bio has two clinical-stage programs in development. The most advanced product
candidate, Lenti-D, is in a recently-initiated phase 2/3 study, the Starbeam
Study, for the treatment of childhood cerebral adrenoleukodystrophy (CCALD), a
rare, hereditary neurological disorder affecting young boys. The next most
advanced product candidate, LentiGlobin, is currently in two phase 1/2
studies, one in the US (the Northstar Study) and one in France (HGB-205), for
the treatment of beta-thalassemia major. The phase 1/2 HGB-205 study also
allows enrollment of patient(s) with sickle cell disease, and bluebird bio is
planning a separate U.S. sickle cell disease trial (HGB-206).

bluebird bio also has an early-stage chimeric antigen receptor-modified T cell
(CAR-T) program for oncology in collaboration with Celgene Corporation.

bluebird bio has operations in Cambridge, Massachusetts, Seattle, Washington
and Paris, France. For more information, please visit www.bluebirdbio.com .

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements
regarding the Company’s financial condition and results of operations and the
advancement of, and anticipated milestones related to the Company’s product
candidates and clinical studies, and anticipated milestones for 2014. Any
forward-looking statements are based on management’s current expectations of
future events and are subject to a number of risks and uncertainties that
could cause actual results to differ materially and adversely from those set
forth in or implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to, the risk of cessation or delay
of any of the ongoing or planned clinical studies and/or our development of
our product candidates, the risk of a delay in the enrollment of patients in
the Company’s clinical studies, the risk that the results of previously
conducted studies involving similar product candidates will not be repeated or
observed in ongoing or future studies involving current product candidates,
the risk that our collaboration with Celgene will not continue or will not be
successful, and the risk that any one or more of our product candidates will
not be successfully developed and commercialized. For a discussion of other
risks and uncertainties, and other important factors, any of which could cause
our actual results to differ from those contained in the forward-looking
statements, see the section entitled “Risk Factors” in our most recent annual
report on Form 10-K, as well as discussions of potential risks, uncertainties,
and other important factors in our subsequent filings with the Securities and
Exchange Commission. All information in this press release is as of the date
of the release, and bluebird bio undertakes no duty to update this information
unless required by law.

Availability of other information about bluebird bio

Investors and others should note that we communicate with our investors and
the public using our company website (www.bluebirdbio.com), our investor
relations website (http://www.bluebirdbio.com/investor-splash.html), including
but not limited to investor presentations and FAQs, Securities and Exchange
Commission filings, press releases, public conference calls and webcasts. You
can also connect with us on Twitter @bluebirdbio, LinkedIn or our YouTube
channel. The information that we post on these channels and websites could be
deemed to be material information. As a result, we encourage investors, the
media, and others interested in bluebird bio to review the information that we
post on these channels, including our investor relations website, on a regular
basis. This list of channels may be updated from time to time on our investor
relations website and may include other social media channels than the ones
described above. The contents of our website or these channels, or any other
website that may be accessed from our website or these channels, shall not be
deemed incorporated by reference in any filing under the Securities Act of
1933.


bluebird bio, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(unaudited)
(in thousands, except per share data)
                                               
                     Three months ended             Six months ended
                     June 30,                       June 30,
                     2014          2013           2014          2013
Revenue:
Collaboration        $ 6,250         $ 6,249        $ 12,500        $ 7,291
revenue
Research and          85            85           170           170     
license fees
Total revenue         6,335         6,334        12,670        7,461   
Operating
expenses:
Research and           13,931          7,247          25,394          12,531
development
General and           5,738         3,281        11,277        5,605   
administrative
Total operating       19,669        10,528       36,671        18,136  
expenses
Loss from              (13,334 )       (4,194 )       (24,001 )       (10,675 )
operations
Other income          11            (389   )      69            (452    )
(expense), net
Loss before           (13,323 )      (4,583 )      (23,932 )      (11,127 )
income taxes
Benefit from          11,797        -            11,797        -       
income taxes
Net loss             $ (1,526  )     $ (4,583 )     $ (12,135 )     $ (11,127 )
                                                                    
Net loss per
share - basic        $ (0.06   )     $ (2.13  )     $ (0.50   )     $ (8.94   )
and diluted:
Weighted-average
number of common
shares used in
computing net         24,474        2,151        24,312        1,244   
loss per share -
basic and
diluted:
                                                                    

                                                             
                                                                  
bluebird bio, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except par value amounts)

                                                 June 30,         December 31,
                                                 2014             2013
Assets
Current assets:
Cash and cash equivalents                        $ 175,710        $  206,279
Deferred tax assets                                3,106             693
Prepaid expenses and other current assets         4,053           5,015   
Total current assets                               182,869           211,987
Property and equipment, net                        12,857            10,920
Intangible assets                                  30,100            -
Goodwill                                           13,128            -
Restricted cash and other non-current assets      1,668           1,483   
Total assets                                     $ 240,622       $  224,390 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable                                 $ 2,586          $  4,359
Accrued expenses and other current                 11,670            5,175
liabilities
Deferred revenue, current portion                 25,291          25,340  
Total current liabilities                          39,547            34,874
Deferred rent, net of current portion              8,056             6,740
Deferred revenue, net of current portion           17,708            30,208
Contingent consideration, net of current           6,097             -
portion
Deferred tax liabilities                           3,106             693
Other non-current liabilities                     352             208     
Total liabilities                                  74,866            72,723
                                                                  
Stockholders' equity:
Common stock, $0.01 par value, 125,000
shares authorized;
25,077 and 23,940 shares issued and
outstanding at June 30, 2014 and December          251               239
31, 2013, respectively
Additional paid-in capital                         276,315           250,103
Accumulated deficit                               (110,810 )       (98,675 )
Total stockholders' equity                        165,756         151,667 
Total liabilities and stockholders' equity       $ 240,622       $  224,390 
                                                                  

Contact:

Investor Relations:
bluebird bio, Inc.
Richard E. T. Smith, Ph.D., 339-499-9382
or
Media Contact:
Pure Communications, Inc.
Dan Budwick, 973-271-6085
 
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