Bluebird Bio Stock Crashes 37% as Carlyle and SK Capital Plan Takeover
Shares of bluebird bio (NASDAQ:BLUE) plummeted ~37% in premarket trading on Friday after the gene therapy developer announced plans to go private as part of an M&A agreement with Carlyle Group (NASDAQ:CG) and SK Capital Partners.
Key Details of the Bluebird Bio Takeover
Under the terms of the deal, bluebird bio shareholders will receive:
- $3.00 per share in cash
- An additional $6.84 per share in contingent value rights (CVR), payable if the company generates $600 million in net sales within any 12-month period before Dec. 31, 2021.
Strategic Investment to Expand Gene Therapy Portfolio
As part of the transaction, Carlyle Group and SK Capital will provide bluebird bio with fresh capital to enhance the commercial reach of its gene therapies targeting:
- Sickle cell disease
- β-thalassemia
- Cerebral adrenoleukodystrophy
Bluebird’s Road to Privatization
Bluebird bio identified the take-private deal as the only viable solution for generating value for stockholders, especially after the FDA denied its appeal for a priority review voucher for the third time. This decision put the company at risk of defaulting on its debt covenants.
The transaction is expected to close in H1 2025, marking the end of bluebird bio’s tenure as a publicly traded company, with its shares no longer listed on any stock exchange.
With this move, bluebird bio seeks to reshape its future in gene therapy, leveraging strategic private capital to navigate the evolving biotech landscape.
