Bluebird bio Spin-off (Oncology Division) Notes

Bluebird bio Spin-off (Oncology Division) Notes

January 14, 2021 Update

• On January 11, 2021, bluebird bio announced that it will be spinning off its oncology division in a tax free transaction to be completed by Q4 2021.
• The remaining company will be focused on rare diseases.
• “Analysts were skeptical that the approach was the solution. In a note to investors, Piper Sandler’s Tyler Van Buren said bluebird had struggled to replenish its pipeline over the years, despite significant funding, and he worried that they didn’t have enough assets or cash to sustain multiple companies.”
• Focus generally helps companies, but I don’t really see the rational for separating these two companies.
• This situation doesn’t seem actionable.
• Bluebird is a $2BN EV company will $250MM of sales but operational losses.
• I don’t have an edge as to the company’s pipeline.