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bluebird bio names new CFO amid financial restatement

Published 29/05/2024, 20:14
BLUE
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SOMERVILLE, Mass. - Biotechnology company bluebird bio, Inc. (NASDAQ:BLUE) announced the appointment of O. James Sterling as its new Chief Financial Officer, effective June 10, 2024. Sterling, who previously served as CFO of Renalytix plc, brings extensive healthcare sector experience to the gene therapy pioneer.

The incoming CFO's appointment comes as bluebird bio navigates a period of transition, with a focus on proving its commercial gene therapy model and moving toward profitability. CEO Andrew Obenshain expressed confidence in Sterling's ability to drive growth and realize shareholder value, while also supporting the company's mission to deliver transformative gene therapies to patients.

Sterling's career includes roles as managing partner at Renwick Capital LLC and managing director at investment banks Brock Capital Group LLC and Aleutian Capital Group. His background also includes a stint as a management consultant at Booz Allen (NYSE:BAH) Hamilton, and he currently serves on the board of a fund managed by Star Mountain Capital. Sterling holds a B.A. from Boston University and an MBA from Columbia Business School.

He succeeds Chris Krawtschuk, who has been credited with accelerating cash flow, completing equity raises, and securing a debt agreement that strengthened bluebird bio's financial position. Krawtschuk's contributions over his two-year tenure have been acknowledged by the CEO.

In addition to the CFO transition, bluebird bio is addressing the restatement of its consolidated financial statements for the first three quarters and full year of 2022, as well as the first three quarters of 2023.

The restatement process, which is not expected to affect the company's cash position or revenue, has delayed the filing of its 2023 Annual Report and Q1 2024 Form 10-Q. Sterling will oversee the restatement process upon assuming his role.

Founded in 2010, bluebird bio has been at the forefront of gene therapy development. The company has secured FDA approvals for three therapies in under two years and continues to focus on severe genetic diseases, with leading programs for sickle cell disease, β-thalassemia, and cerebral adrenoleukodystrophy.

The information in this article is based on a press release statement from bluebird bio, Inc.

InvestingPro Insights

As bluebird bio, Inc. (NASDAQ:BLUE) welcomes its new CFO O. James Sterling, the company's financial health and market performance remain pivotal for investors. InvestingPro data highlights several key metrics that may inform potential investment decisions. The company's market capitalization stands at $181.2 million, reflecting its current valuation in the market. Despite a remarkable revenue growth of 322.68% over the last twelve months as of Q3 2023, the company's gross profit margin during the same period was significantly negative at -1076.97%, indicating expenses far exceeding gross income.

Additionally, bluebird bio's stock has experienced volatility, with a 6-month price total return showing a substantial decline of -75.65%. This aligns with one of the InvestingPro Tips, which notes that the stock has taken a big hit over the last six months. The company's current price is at 17.0% of its 52-week high, suggesting a sharp decrease in stock value over the past year.

Investors considering bluebird bio should be aware of the InvestingPro Tips that the company is quickly burning through cash and does not pay a dividend to shareholders. Furthermore, analysts do not anticipate the company will be profitable this year, which may be a concern for those looking for short-term gains. For those interested in a deeper analysis, there are additional InvestingPro Tips available, which can be accessed for further insights into bluebird bio's financials and market performance. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to uncover more strategic insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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