By Bluebird Bio, a biotech company based in Somerville, Massachusetts, has announced a public offering of over 83.3 million shares at a price of $1.50 per share. This news has resulted in a significant drop in the company’s stock price, which fell 45% to $1.34 during pre-market trading on Wednesday. Overall, the stock has declined by approximately 67% this year.
As part of the offering, Bluebird Bio has also granted underwriters a 30-day option to purchase an additional 12.5 million shares of common stock at the same price. The expected gross proceeds from the offering are estimated to be $125 million before commissions.
The net proceeds generated from this public offering will be utilized by Bluebird Bio to support the commercialization and manufacturing of three of its approved gene therapies, namely Zynteglo, Skysona, and Lyfgenia. The company has appointed Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as joint book-running managers for this offering, with Raymond James & Associates acting as co-manager.
The offering is scheduled to close on Friday. It is worth noting that Bluebird Bio had conducted another public offering earlier this year, intending to raise a similar amount.
Comments