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bluebird bio (BLUE) to receive $200 M from Bristol Meyers Squibb (BMY)

May 11, 2020 10:16am

To buy out obligations for future royalties on sales outside the United States of two cancer therapies being developed by them.

The revised deal will provide BLUE with capital without having to tap equity markets that have been hammered by the coronavirus outbreak

The treatments, ide-cel and bb21217, are part of a class of drugs called CAR-T therapies that involve drawing white blood cells from a patient, processing them to target cancer cells, and infusing them back into the patient. <Reuters>

BLUE and BMY will continue to equally share profits and losses in the United States.

BLUE also said it was going to reduce the investment in building a U.S. commercial organization, and that its CEO Nick Leschly will decline nearly 100% of his salary for the next 12 months.

The Bottom Line: BLUE also reported a Q1/2020 net loss of $202.6 million or -$3.64 per share compared with a Q1/19 loss of $164.4 million or -$2.99 per share extending its cash runway into 2022. Shares of BLUE slipped -$0.12 or -0.20%, then jumped and again dived which were up 8% before the bell, while Bristol Myers shares were up +1.05 or +1.71% % at $62.10.

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