Boston, MA – In light of recent financing news, bluebird bio, Inc. is facing new challenges that may impact its future. Following a previous analysis of the company’s performance, concerns have been raised regarding the impact of recent developments on its stock price and market value.

The company had been rated a buy for several reasons, including potential FDA approval for its Sickle Cell treatment and manageable cash flow despite tight finances. However, the FDA’s approval came with unexpected hurdles, leading to a sharp decline in the company’s stock value and raising questions about its future profitability.

Despite these setbacks, bluebird bio is still seen as undervalued considering its intellectual property assets alone. With the recent injection of $175 million in debt financing, the company has a chance to turn its fortunes around and potentially reach profitability in the near future.

Furthermore, the potential for a significant upside in a potential sale of the company, along with the extension of its cash runway, adds to the optimism surrounding bluebird bio. With a strategic distribution plan in place and ongoing negotiations with payers, the path to profitability may be within reach for the company.

However, risks still remain, particularly concerning the future of the company’s treatments and the potential impact of FDA regulations. Despite these challenges, the overall sentiment remains positive, with analysts maintaining a buy rating for bluebird bio as it navigates the complexities of the biotech industry.