Bluebird Bio Shares Could See Value Fly To $95 As 2017 Will Be A 'Catalyst-Filled Year'

Wedbush’s David Nierengarten expects “several major data readouts” ahead in 2017 to act as catalysts for bluebird bio Inc BLUE.

The analyst reiterated an Outperform rating on the company, with a price target of $95.

Data As Catalyst

“Early data from registration-directed Northstar 2 (HGB-207) study in nonB0/B0 beta-thal will be presented at EHA meeting,” Nierengarten mentioned. The meeting is scheduled for June 22-25.

Bluebird bio didn't present at the 2016 EHA in order to provide data from a larger cohort of patients with longer follow up at the ASH.

The analyst believes the “decision to go back to providing more regular updates reflects confidence in the more uniform and potent LentiGlobin product.”

In 2017, the data to be presented is expected to be from “only a handful of patients,” given that the first patient in the study began treatment in December 2016.

“Despite the short duration of follow-up, we expect to see evidence of improved efficacy with new LentiGlobin, including faster time to neutrophil engraftment and early increases in corrected globin production,” Nierengarten stated.

Related Link: Analyst Breaks Down Bluebird Bio's Better-Than-Expected Clinical Results

Other Catalysts

Other data likely to be presented through 2017 include the bb2121 CAR-T trial data, which is expected to be presented at ASCO, June 2-6, 2017, while full data from the initial 17 patients in Starbeam is expected in H2:17.

“LentiGlobin data from HGB-206 expected at ASH, we believe changes to protocol could improve benefit in adult SCD patients,” the analyst added.

Nierengarten sees cash runway for bluebird bio into the second half of 2019.