Blue­bird falls as op­er­at­ing costs soar amid biotech sell­off

The Pak Banker - - COMPANIES/BOSS -

Blue­bird Bio Inc., which is de­vel­op­ing gene ther­a­pies for rare dis­eases and can­cer, fell af­ter re­port­ing a wider loss than an­a­lysts had es­ti­mated amid a sell­off in biotech­nol­ogy stocks.

Blue­bird, which has no ap­proved drugs, slipped 1.3 per­cent to $ 154.84 at the New York close af­ter fall­ing as much as 18 per­cent ear­lier in the ses­sion.

The com­pany said late Thurs­day that op­er­at­ing ex­penses al­most tripled in the sec­ond quar­ter and its net loss widened to $ 1.57 per share, more than dou­ble the 78 cents an­a­lysts sur­veyed by Bloomberg had ex­pected.

The stock's de­cline was ex­ac­er­bated by a broader mar­ket pes­simism about biotech­nol­ogy com­pa­nies, ac­cord­ing to Eric Sch­midt, an an­a­lyst at Cowen & Co.

Sev­eral biotech firms "were taken out to the wood­shed" in re­cent days, Sch­midt said. "We can sit back and Fri­day morn­ing quar­ter­back as much as we want, but some­times there are more sellers than buy­ers."

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