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bluebird (BLUE) Moves 8.1% Higher: Will This Strength Last?

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bluebird bio (BLUE - Free Report) shares soared 8.1% in the last trading session to close at $32.48. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 35.5% loss over the past four weeks.

Shares gained after the company announced updated findings from the reported case of acute myeloid leukemia (AML) in LentiGlobin for sickle cell disease (SCD) gene therapy program. The company had earlier announced a temporary suspension of its phase I/II (HGB-206) and phase III (HGB-210) studies of LentiGlobin gene therapy for SCD (bb1111) due to a reported Suspected Unexpected Serious Adverse Reaction (SUSAR) of AML.

Nevertheless, based on the analyses completed to date by bluebird, it is very unlikely that the SUSAR of AML reported in its phase I/II (HGB-206) study of LentiGlobin gene therapy for SCD was related to the BB305 lentiviral vector (LVV). The company is now in talks with the FDA in order to resume all clinical studies currently on clinical hold, as data from its assessments provide important evidence, demonstrating that it was unlikely that BB305 lentiviral vector played a role in this case.


 

Price and Consensus

Price Consensus Chart for Bluebird

This biotechnology company is expected to post quarterly loss of $3.05 per share in its upcoming report, which represents a year-over-year change of +16.2%. Revenues are expected to be $11.79 million, down 46.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Bluebird, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BLUE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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