Biotech company bluebird bio Inc (NASDAQ:BLUE) has priced its underwritten public offering, making 83,333,333 shares of common stock available at $1.50 per share.
The offering, expected to yield $125 million in gross proceeds, provides underwriters a 30-day option to purchase an additional 12,499,999 shares.
Proceeds will primarily support the commercialization and manufacturing of three approved gene therapies, Zynteglo, Skysona, and Lyfgenia, and fund general corporate purposes, the company said in a statement.
The closing is anticipated around December 22, 2023.
Shares of bluebird slid over 45% on Wednesday morning to sit at US$1.33 on the Nasdaq.
The company recently gained FDA approval for its gene therapy, Lyfgenia, to treat sickle cell disease. However, the FDA did not grant the company a valuable Priority Review Voucher (PRV), which was unexpected.
bluebird had a deal in place to sell a potential PRV to Novartis for $103 million. Without this expected income, the firm is now urgently seeking funds for the launch of Lyfgenia and other gene therapies.