Too Earlier to Write Off bluebird bio's (BLUE) LentiGlobin in Subset - Cowen
Cowen maintained an Outperform rating on bluebird bio (NASDAQ: BLUE). Shares declined after it announced data from its ongoing clinical studies of LentiGlobin will be highlighted in oral and poster presentations at the ASH meeting. In the view of analyst Eric Schmidt, it is far too early to conclude that LentiGlobin treatment will not lead to major benefits in beta0/beta0 patients.
"BLUE shares have come under pressure largely because beta0/beta0 subjects who make no endogenous beta chain Hb (the severest of beta-thal patients) have not achieved transfusion independence. In HGB-204, seven subjects (four non-beta0/ beta0 and three beta0/beta0) have been monitored at six months post infusion and are producing a median HbA-T87Q level of 5.2g/dL (total Hb levels range of 8.5-11.1g/dL). All non beta0/beta0 subjects remain transfusion-free for >90 days (median of 287 days). Two beta0/beta0 subjects received a single transfusion, while another patient remain transfusion-dependent," noted Schmidt.
"We think it far too early to conclude that LentiGlobin treatment will not lead to major benefits in beta0/beta0 patients (~33% of the total beta-thal commercial opportunity). This is because (1) transfusion independence, while optimal, is not a requirement for success. Substantial reductions in transfusions may be almost as welcome, and (2) LentiGobin's ability to produce Hb may continue to increase over time, potentially allowing patients further reduce transfusion requirements. beta0/beta0 patients represent approximately 1/3 of betathalassemia major patients. We estimate the total beta thal market opportunity at ~ $600MM WW," continued the analyst.
Schmidt added, "The one severe SCD subject treated in HGB-205 is producing ~52.5% (48% HbAT87Q, 1.8% HbF, 1.7% HbA2) total anti-sickling hemoglobin (vs. 30% target goal) and remains transfusion free with no post-treatment hospitalization. At least two additional patients will be reported on at ASH. LentiGlobin's safety continues to look good across all trials. SCD continues to be the largest market opportunity for LentiGlobin. We estimate peak sales at $1.5B. BLUE has decided to increase enrollment in the HGB-206 study in severe SCD from n=8 to n=20 to gain additional experience. BLUE indicated that the decision to increase the enrollment was solely its decision. Nonetheless, we think the additional data provides flexibility and optionality for a potential accelerated approval pathway in SCD (similar to beta-thalassemia)."
For an analyst ratings summary and ratings history on bluebird bio click here. For more ratings news on bluebird bio click here.
Shares of bluebird bio closed at $90.15 yesterday.