After exploring a rival buyout offer worth 50% more than its first, bluebird bio is back where it started.
Wednesday, the company said that it's sticking with the decision to sell to private equity firms Carlyle and SK Capital for $3 per share, plus a contingent payment of $6.84 per share if it meets a future net sales threshold.
The decision comes after bluebird bio last month received a "non-binding written proposal" from Ayrmid for $4.50 per share, plus the same contingent payment value of $6.84 per share. In a press release today, the company said it had "fiduciary duties" to explore the proposal.
After a 2-week "period of confirmatory diligence" with Aymrid, plus a 4-day extension granted by bluebird, the gene therapy company says it's reaffirming its commitment to the original deal with Carlyle and SK Capital, first revealed on Feb. 21.
In the end of the diligence period, Aymrid did not submit a binding offer or obtain necessary financing, bluebird revealed.
"In light of Ayrmid’s failure to deliver a binding offer after three weeks of engagement, or as part of the earlier strategic review process, the Board reiterates its unanimous recommendation in support of the transaction with Carlyle and SK Capital," bluebird bio said in its April 16 release.
U.K. entity Ayrmid is the parent company of Gamida Cell, a cell therapy company that markets FDA-approved allogeneic hematopoietic progenitor cell therapy Omisirge for certain patients with hematologic malignancies.
In February, bluebird said it planned to sell to Carlyle and SK Capital for about $29 million, a dramatic decline in value for a gene therapy specialist often celebrated for its advances in the field.
Despite winning multiple groundbreaking FDA approvals, bluebird has struggled to develop sustainable markets for its drugs and at times has faced questions about its future viability. Last year, the company secured debt funding and revealed a restructuring plan to extend its cash runway and further work through its launches.
Carlyle and SK Capital, meanwhile, have pledged to support the company's future, in part by installing David Meek, former Mirati and Ipsen CEO, as the gene therapy specialist's chief exec after the deal's close.
“Bluebird is built on an extraordinary legacy of scientific breakthroughs, and we are committed to unlocking its full potential for patients," Meek said in a Feb. 21 press release. "With the backing of Carlyle and SK Capital
Bluebird struck the deal with Carlyle and SK Capital after meeting with more than 70 investors over the span of several months, the company said.
Bluebird's FDA-approved gene therapies are Zynteglo for beta thalassemia, Skysona for a subset of patients with cerebral adrenoleukodystrophy and Lyfgenia for sickle cell disease patients 12 and older who have a history of vaso-occlusive events.
Despite winning those successive FDA approvals in recent years, bluebird generated just $10.6 million during last year's third quarter. The company expected sales to come in at around $25 million in the final quarter of the year.
Since its founding in 1992, bluebird's accumulated deficit reached $4.5 billion as of December 31, the company said in its annual filing with the SEC. Its losses last year were $240 million.