A meeting with bluebird bio Inc’s (NASDAQ:BLUE) leadership last week validified Dane Leone’s, an analyst at BTIG, confidence in the company. The meeting covered topics ranging from bluebird’s current drugs to its pipeline drugs.
Investors have recently expressed their concerns about how successful bluebird’s anti-BCMA program will be due to the amount of competition. The analyst concluded from his meeting that bluebird’s strategy puts it in good shape to take control of the market. The company has decided to “heavy front end investment made for the multi-center sponsored trial with 3+3 standard dose escalation.” This strategy should allow for quicker approval, pending results.
Leone also discovered that bluebird’s management is not expecting the FDA to require a new IND for its altered LentiGlobin manufacturing process. The new process is expected to improve the “transduction process and improve the Vector Copy Number within cells.”
Additionally, the data from Luspatercept, a competitor’s drug, showed results that boosted Hemoglobin production by 1-1.5 g/dL. This data is much lower than the median increase of 4.9 g/dL for bluebird’s LentiGlobin.
The positive direction that bluebird’s management presented to the analyst led him to reiterate his Buy rating with a $72 price target, marking a 96% increase from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Dane Leone has a yearly average return of 3.4% and a 61.6% success rate. Leone has a -22.8% average return when recommending BLUE, and is ranked #649 out of 3967 analysts.
Out of the 6 analysts who have rated the company in the past 3 months, five gave a Buy rating and one gave a Hold. The average 12-month price target for the stock is $110.75, marking a 202.02% upside from current levels.