Attention Bluebird Bio Investors: Analyst Sees Upside Following Strong Therapy Results

Citing the release of new bb2121 therapy data among other growth factors, BMO analyst Matthew Luchini has upgraded bluebird bio Inc (NASDAQ: BLUE) to Outperform and raised his price target to $108.

“We believe latest data shows bb2121's continued compelling efficacy, including 100 percent ORR rate, and a generally clean safety profile in a heavily pretreated 3L+ myeloma population,” Luchini said. “We see additional opportunity for near-term upside in BLUE with the upcoming EHA meeting (June 22–25).”

Key Takeaways

Bb2121, an anti-BCMA CAR-T therapy for multiple myeloma, is performing extremely well compared the efficacy report by the current SOC daratumumab. The report also highlighted that the drug was even tested in a very difficult population (patients had a median of seven prior therapies) and still performed well.

Key Metrics for bb2121

Response rate: 100 percent

Number of patients relapsing: zero

Patients reporting complete response: 27 percent

Patients reporting very good partial response: 47 percent

Toxicities that appear manageable: all

Moving Forward

Luchini is now looking ahead “for the next update later in 2017, likely at ASH (December 9–12), and for Bluebird Bio to move forward with a pivotal trial under breakthrough designation.

Additionally, bb21217, Bluebird Bio’s second-generation BCMA program, could offer further upside. “We believe having two BCMA-focused products could allow BLUE to more effectively segment the myeloma market and also potentially have more flexibility in pricing, with bb2121 potentially focused on highly refractory patients, while bb21217 could be used in less severe population and at a lower price,” Luchini said.

Bluebird Bio was trading up nearly 13 percent at $102.55 during Tuesday’s trading session.

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