A biotechnology that is developing new treatments for cancer and cures for serious genetic diseases will soon become a pair of more focused independent companies. On Monday, bluebird bio (NASDAQ: BLUE) announced its intention to break up its oncology business.
The transition is expected to occur this year. The rare disease treatment portfolio will remain with the bluebird bio, and the company’s current president of this segment, Andrew Obenshain, will become its CEO. Nick Leschly, current CEO of bluebird bio, will take charge of the spin-off, currently being called Oncology Newco.
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Bluebird will have no problem convincing investors that it needs to focus more on its programs for serious genetic diseases. About a year and a half ago, the European Commission granted conditional marketing approval for Zynteglo as a gene therapy treatment for certain patients with transfusion-dependent beta-thalassemia. An unfortunately slow commercial launch, however, limited total revenue to less than 10% of the bluebird bio research and development budget.
In November, Bluebird revealed that the FDA had requested more information about the Zynteglo manufacturing process as it moves from clinical testing to commercial production. This will likely prevent the company from submitting its order to the FDA until the end of 2022.
In partnership with Bristol Myers Squibb (NYSE: BMY), Oncology Newco may launch ide-cel this spring for patients with multiple myeloma who have run out of treatment options. In September, the FDA initiated a priority review that should be final. During a clinical trial supporting the application, treatment with ide-cel reduced tumors in 73% of patients and helped 33% achieve complete remission.