Why Bluebird Bio (BLUE) Stock Is Getting Hammered

Bluebird Bio Inc BLUE shares are trading lower by 10.0% to $6.55 Wednesday morning after the company announced a proposed public offering of common stock.

The underwritten public offering is for 20,000,000 shares of its common stock. Bluebird also intends to grant the underwriters a 30-day option to purchase up to an additional 3,000,000 shares of its common stock to be sold in the offering.

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The company says it intends to use the net proceeds of the offering:

• (i) to support commercialization and manufacturing for its two approved gene therapies, ZYNTEGLO and SKYSONA;
• (ii) to accelerate future commercialization activities for its gene therapy candidate, lovotibeglogene autotemcel (lovo-cel) for sickle cell disease, if approved; and
• (iii) to fund working capital and other general corporate purposes.

According to data from Benzinga Pro, Bluebird Bio has a 52-week high of $8.58 and a 52-week low of $2.86.