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Bluebird Bio’s Valuation on September 6

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Bluebird Bio’s valuation

Bluebird Bio (BLUE) is a clinical stage biotechnology company. It reported a net loss of $2.91 per share on revenues of $7.8 million in Q2 2018, a 53% decline YoY (year-over-year) compared to $16.72 million in the second quarter of 2017.

The above chart compares the revenues and EPS for Bluebird Bio since the first quarter of 2017.

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Forward EV-to-revenue multiple

Bluebird Bio currently trades at a forward EV[1. enterprise value]-to-revenue multiple of ~127.2x, which is higher than the industry average of ~31.2x as of September 6. Competitors Amgen (AMGN), Vertex Pharmaceuticals (VRTX), and Sangamo Therapeutics (SGMO) are trading at forward EV-to-revenue multiples of 5.8x, 13.0x, and 9.3x, respectively, compared to Bluebird Bio.

Performance in Q2 2018

Let’s look at Bluebird Bio’s revenue performance in Q2 2018.

  • Its collaboration revenues increased ~21% to $7.4 million in Q2 2018 compared to $6.1 million in the second quarter of 2017.
  • Its license and royalty revenues decreased ~96% to $0.4 million in Q2 2018 compared to $10.6 million in the second quarter of 2017.

Now let’s see what Bluebird Bio’s profitability was in Q2 2018.

  • It reported a net loss of ~$146 million in Q2 2018 compared to ~$70.9 million in the second quarter of 2017.
  • Its net loss per share increased from $1.73 per share in the second quarter of 2017 to $2.91 per share in Q2 2018.

The company also raised ~$600.6 million through the public offering of common stock in July.

The SPDR S&P Biotech ETF (XBI) holds 1.1% of its total investments in Bluebird Bio (BLUE), 1.3% in Amgen (AMGN), 1.5% in Vertex Pharmaceuticals (VRTX), and 1.4% in Sangamo Therapeutics (SGMO).

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