Why This Biotech's $1.8 Million Gene Therapy Could Be A 'Slow Mover' - (Investor's Business Daily via NewsPoints Desk)

  • Shares in bluebird bio fell as much as 3.4% after William Blair analyst Raju Prasad suggested that sales of the beta thalassaemia treatment Zynteglo will grow slowly, Investor's Business Daily reported Monday.

  • "Notably, based on the reimbursement model (costs amortized over five years), we believe that the Zynteglo launch is likely to be a slow mover," Prasad stated.

  • The analyst expects sales of $8.7 million for the drug in 2020, growing to $32.8 million in 2021 and $79.6 million in 2022.

  • Prasad additionally cited potential competition for bluebird's investigational cancer drugs bb2121 and bb21217, which are being developed with Celgene, while he plans to take a "wait-and-see" approach regarding the company's earlier-stage pipeline.

  • The news comes as the FDA has questioned whether Novartis's AveXis unit manipulated data for a recently approved gene therapy.

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