MDS case bad for Bluebird Bio, likely others, says Piper Jaffray

Piper Jaffray analyst Tyler Van Buren notes that Bluebird Bio presented at ASH long-term follow up from the Phase I HGB-206 study for the original cohort of LentiGlobin sickle cell patients and the efficacy update was positive and showed encouraging reductions in VOEs. However, one patient who received LentiGlobin approximately 3 years ago developed myelodysplastic syndrome, he contends. The analyst adds that while this appears unrelated to LentiGlobin drug product, it is likely due to the intensive conditioning regimen, or in other words, the procedure. This highlights the simple fact that there are significant risks with procedures involving intensive conditioning of any kind, Van Buren points out, adding that he continues to “wonder how many non-malignant heme patients will be willing to accept these risks, which now quite obviously may include cancer.” The analyst has an Overweight rating and $240 price target on the shares.

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