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Shares in biotech company Bluebird bio should double next year thanks to its treatment for sickle cell anemia, a genetic blood disorder and a rare genetic brain disorder, Baird said. The Wall Street firm initiated stock coverage on Monday with a Leading Momentum rating and a $10 target price, suggesting upside potential of 104% from Monday’s close. “The Bluebird treatment has clearly provided transformative benefits to patients in their clinical trials, and we believe current short-term consensus estimates are fairly conservative, especially given the high prices of these treatments,” analyst Jack Allen wrote in a note to clients. Its lovo-cel “transformative” gene therapy for sickle cell anemia is expected to be launched in late 2023 and should benefit approximately 3,750 patients who are expected to seek treatment for the disease, he said. “At $1.5 million per patient, ~35% market share could see Locel’s peak sales exceed $600 million three years after launch as bolus treatment of common patients is being treated (which compares favorably with consistent sales in 2026 in the amount of ~$300 million),” Allen said. The launch of Zynteglo, approved in August 2022 for the treatment of transfusion-dependent beta thalassemia (TDT), should also exceed analysts’ expectations, analysts said. In January, company management said 40 patients initiated a benefit review for Zynteglo during the last three months of 2022. Analysts expect Bluebird’s 2023 sales to be $70 million, which includes 25 patients treated with both Zynteglo and Skysona, its treatment for children. cerebral adrenoleukodystrophy (CALD), Allen said. “Furthermore, we note that Bluebird’s Zynteglo is likely to have a commercial launch of approximately one year compared to the competing product from CRISPR/Vertex, which could be critical as it involves gaining access to a larger patient population before how these patients underwent single cell therapy,” he said. Baird also expects the use of Bluebird Skysona to treat CALD, which was approved in September 2022, to increase significantly in the coming years. are down about 29% this year as of Monday’s close – CNBC’s Michael Bloom contributed reporting.
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