bluebird bio proposes public offering of $150 million common stock

US biotech bluebird bio (Nasdaq: BLUE) saw a negative reaction to its proposed sales of shares, with the stock closing down 6.7% and a further15.6% to $2.575 in after-hours trading on Monday.

Having failed to receive a pediatric disease priority review voucher along with its Food and Drug Administration approval of its cell therapy Lyfgenia (lovotibeglogene autotemcel), which it expected to sell for around $100 million, bluebird yesterday said it has commenced an underwritten public offering of $150,000,000 of shares of its common stock. bluebird also intends to grant the underwriters a 30-day option to purchase up to an additional $22,500,000 of shares of its common stock to be sold in the offering.

The offering, actual size and terms are subject to market conditions, and there can be no assurance as to whether or when the offering may be completed. All shares in the offering are to be sold by bluebird.