Bluebird Bio Joins Layoff Band Wagon As Gene Therapy Biotech Cuts Staff To Reduce Costs

• Bluebird Bio Inc (NASDAQ:BLUE) is laying off about 30% of its workforce before the FDA decides the fate of two of its gene therapies.
• The gene therapy-focused company is showing the exit to nearly one-third of its staff to extend its cash runway into the first half of 2023 and save $160 million over the next two years. 
• Bluebird plans to reduce its workforce across the second and third quarters of 2022, the company revealed in an SEC filing. 
• Severance and termination costs will tally at nearly $10 million.
• Last month, the biotech said it planned to spend less than $400 million in 2022. Now bluebird expects a 35% to 40% dip in operating costs.
• The company awaits two FDA decisions on its lentiviral gene therapies, one for beti-cel (marketed in Europe as Zynteglo) for β-thalassemia and the other for eli-cel, which is targeting a metabolic condition called cerebral adrenoleukodystrophy. 
• The FDA decision dates are August 19 and September 16, respectively.
• Bluebird plans to file an FDA application for its sickle cell disease gene therapy, lovo-cel, in Q1 of 2023.
• Price Action: BLUE shares are down 2.87% at $5.08 during the market session on the last check Tuesday.