In research report issued today, J.P. Morgan analyst Cory Kasimov shed some light on bluebird bio Inc (NASDAQ:BLUE), after the company announced an amendment to its CAR-T collaboration agreement with Celgene Corporation (NASDAQ:CELG). The analyst maintained an Overweight rating on bluebird shares, which are currently trading flat at $184.77.
Kasimov noted, “The BLUE/CELG partnership effort now focuses solely on targeting B-cell maturation antigen (BCMA), initially in multiple myeloma though BLUE noted the target may be applicable to other indications. Outside of BCMA, BLUE now has sole rights to develop other CAR-T candidates, including those from ongoing preclinical programs as well as candidates with the Five Prime target (not yet disclosed).” Furthermore, “While the “narrowing” of the agreement could be interpreted as a negative, we note this was always a high risk/high reward effort (and not reflected in the valuation at this point, in our view), and BLUE now stands to more fully benefit if it works.”
Bottom line: “This development has no impact on our thesis in the near/intermediate term, and we would use any weakness on the back of this headline as a buying opportunity ahead of data updates for LentiGlobin (the linchpin of the investment thesis) in Bthalassemia and sickle cell disease at EHA on June 13 th.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a total average return of 14.7% and a 67.0% success rate. Kasimov has a 45.6% average return when recommending BLUE, and is ranked #181 out of 3610 analysts.