US biotechnology company Bluebird Bio has unveiled plans for a strategic corporate split, separating its operations into two independent entities focused on gene therapy and oncology, respectively. The reorganization is expected to be completed within the year as the company positions itself to bring multiple products to market.
Strategic Leadership Transition
The restructuring brings significant leadership changes, with current genetic disease president Andrew Obenshain appointed to lead the gene therapy-focused Bluebird Bio as CEO. Meanwhile, current CEO Nick Leschly will transition to head the newly formed oncology company while maintaining involvement with Bluebird Bio as executive chair.
Strengthening Therapeutic Focus
The gene therapy company will maintain Bluebird's core focus on rare genetic diseases, with key programs in beta-thalassemia, cerebral adrenoleukodystrophy, and sickle cell disease across US and European markets. The company's gene therapy Zynteglo is already available in Europe for beta-thalassemia, carrying a price tag of $1.8 million.
The separation comes at a crucial time as Bluebird navigates regulatory challenges. The FDA recently established additional manufacturing requirements for Lentiglobin, the company's gene therapy for sickle cell anemia, potentially delaying filing until late 2022. Similarly, the company's CAR-T therapy idecabtagene vicleucel (ide-cel), developed in partnership with Bristol-Myers Squibb, faced initial regulatory hurdles but is now awaiting an FDA decision in late March for multiple myeloma treatment.
Strategic Rationale and Future Outlook
The split is designed to enhance operational efficiency and capital allocation. Operating as separate entities will allow each company to:
- Streamline operations and simplify organizational structure
- Pursue independent capital raising strategies
- Maintain focused investment approaches
- Exercise greater strategic flexibility
The oncology spin-off has already begun strengthening its leadership team, notably adding Dr. Ramy Ibrahim, a distinguished expert in immunotherapy and cell therapy development, to its board. Ibrahim brings valuable experience from the Parker Institute for Cancer Immunotherapy, AstraZeneca, MedImmune, and Bristol-Myers Squibb, where he contributed to the development of the immunotherapy drug Yervoy.
