bluebird bio Announces Receipt of Expected Notices from Nasdaq

Rhea-AI Summary

bluebird bio (Nasdaq: BLUE) received notices from Nasdaq on August 20, 2024, stating non-compliance with Listing Rule 5250(c)(1) due to delayed filing of Q1 and Q2 2024 Form 10-Qs. This follows a previous non-compliance notice for the delayed 2023 Form 10-K. The company must submit an updated compliance plan by September 4, 2024, and file all outstanding reports by October 14, 2024. BLUE announced on March 26, 2024, that it will restate financial statements for 2022 and the first three quarters of 2022 and 2023. The notices do not immediately affect BLUE's Nasdaq listing or stock trading. The company is working to complete these filings promptly.

Positive

• No immediate effect on Nasdaq listing or stock trading

Negative

• Non-compliance with Nasdaq Listing Rule 5250(c)(1)
• Delayed filing of Q1 and Q2 2024 Form 10-Qs
• Delayed filing of 2023 Form 10-K
• Restatement of financial statements for 2022 and first three quarters of 2022 and 2023

Insights

Financial Analyst

bluebird bio's failure to file timely financial reports is a significant red flag for investors. This non-compliance with Nasdaq listing rules could lead to delisting if not resolved, severely impacting stock liquidity and valuation. The need to restate financial statements for multiple periods suggests potential accounting irregularities, which could erode investor confidence. While the company has until October 14, 2024, to regain compliance, the extent of the restatement (covering two years) indicates a complex financial situation. Investors should be cautious and closely monitor the company's progress in filing updated reports, as the outcome could significantly impact the stock's future.

Legal Expert

The notices from Nasdaq highlight serious regulatory compliance issues for bluebird bio. The company's failure to file required financial reports puts it at risk of violating securities laws, potentially leading to SEC enforcement actions. The need for financial restatements raises questions about the effectiveness of internal controls and could trigger shareholder lawsuits. While Nasdaq has provided a grace period, the company must demonstrate substantial progress to avoid delisting proceedings. Investors should be aware that these regulatory challenges could result in increased legal and compliance costs, impacting the company's financial health and operational focus in the near term.

Market Research Analyst

The delayed filings and financial restatements create significant uncertainty in the market. This situation typically leads to increased stock volatility and potential downgrades from analysts. Institutional investors may reduce positions or implement trading restrictions due to the lack of reliable financial information. The company's ability to raise capital could be severely hampered, which is critical for biotech firms often reliant on frequent fundraising. Moreover, this regulatory non-compliance may deter potential partnerships or acquisitions in the highly collaborative biotech sector. Investors should expect heightened market skepticism and possibly reduced liquidity for bluebird bio's stock until the situation is fully resolved.

SOMERVILLE, Mass.--(BUSINESS WIRE)-- bluebird bio, Inc. (Nasdaq: BLUE) today announced that it received notices (the “notices”) on August 20, 2024 from The Nasdaq Stock Market LLC (“Nasdaq”) stating that because the Company has not yet filed its Quarterly Reports on Form 10-Q for each of the quarters ended March 31, 2024 (the “Q1 2024 Form 10-Q”) and June 30, 2024 (the “Q2 2024 Form 10-Q”), it is not in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Rule”), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (the “SEC”).

The notices have no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq.

The Company previously announced on April 26, 2024, that it was not in compliance with the Rule due to the delay in filing its Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). The Company subsequently submitted a plan to Nasdaq to regain compliance with the Rule on or before October 14, 2024, within 180 calendar days from the prescribed due date of its 2023 Form 10-K. Under Nasdaq rules, the Company must also file its Q1 2024 Form 10-Q and Q2 2024 Form 10-Q within this same period, and must submit an update to its plan to regain compliance by September 4, 2024.

On March 26, 2024, bluebird announced that it will restate its consolidated financial statements as of and for the year ended December 31, 2022, and for each of the first three quarters of 2022 and 2023 in its 2023 Form 10-K. As a result of the restatement, the Company is delayed in filing its 2023 Form 10-K and its Q1 2024 Form 10-Qand Q2 2024 Form 10-Q. The Company is continuing to work expeditiously to complete these filings.

About bluebird bio, Inc.

bluebird bio is pursuing curative gene therapies to give patients and their families more bluebird days.

Founded in 2010, bluebird has been setting the standard for gene therapy for more than a decade—first as a scientific pioneer and now as a commercial leader. bluebird has an unrivaled track record in bringing the promise of gene therapy out of clinical studies and into the real-world setting, having secured FDA approvals for three therapies in under two years. Today, we are proving and scaling the commercial model for gene therapy and delivering innovative solutions for access to patients, providers, and payers.

With a dedicated focus on severe genetic diseases, bluebird has the largest and deepest ex-vivo gene therapy data set in the field, with industry-leading programs for sickle cell disease, β-thalassemia and cerebral adrenoleukodystrophy. We custom design each of our therapies to address the underlying cause of disease and have developed in-depth and effective analytical methods to understand the safety of our lentiviral vector technologies and drive the field of gene therapy forward.

bluebird continues to forge new paths as a standalone commercial gene therapy company, combining our real-world experience with a deep commitment to patient communities and a people-centric culture that attracts and grows a diverse flock of dedicated birds.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements, such as statements regarding the Company’s restatement of certain historical financial statements, the filing of its 2023 Form 10-K, Q1 2024 Form 10-Q and Q2 2024 Form 10-Q, and submission of an update to its plan to regain compliance with the Rule, and the expected timing thereof. Such forward-looking statements are based on historical performance and current expectations and projections about bluebird’s future goals, plans and objectives and involve inherent risks, assumptions and uncertainties, including internal or external factors that could delay, divert or change any of them in the next several years, that are difficult to predict, may be beyond bluebird’s control and could cause bluebird’s future goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. No forward-looking statement can be guaranteed. Forward-looking statements in this press release should be evaluated together with the many risks and uncertainties that affect bluebird bio’s business, particularly those identified in the risk factors discussion in bluebird bio’s Annual Report on Form 10-K for the year ended December 31, 2022, as updated by its subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the SEC. The forward-looking statements included in this document are made only as of the date of this document and except as otherwise required by applicable law, bluebird bio undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240823097360/en/

Investors:

Courtney O’Leary, 978-621-7347

coleary@bluebirdbio.com



Media:

Jess Rowlands, 857-299-6103

jess.rowlands@bluebirdbio.com

Source: bluebird bio, Inc.

FAQ

What notices did bluebird bio (BLUE) receive from Nasdaq on August 20, 2024?

bluebird bio received notices from Nasdaq stating non-compliance with Listing Rule 5250(c)(1) due to delayed filing of Q1 and Q2 2024 Form 10-Qs.

When does bluebird bio (BLUE) need to submit an updated compliance plan to Nasdaq?

bluebird bio must submit an updated compliance plan to Nasdaq by September 4, 2024.

What is the deadline for bluebird bio (BLUE) to file all outstanding reports with Nasdaq?

bluebird bio must file all outstanding reports with Nasdaq by October 14, 2024.

What financial statements is bluebird bio (BLUE) restating?

bluebird bio is restating financial statements for 2022 and the first three quarters of 2022 and 2023.