Carlyle Group and SK Capital Partners have increased the upfront portion of their takeover bid for gene therapy developer bluebird bio, to $5 per share in cash from $3 per share plus a contingent value right, according to a joint statement issued on Wednesday.
Shares in Nasdaq-listed bluebird bio surged more than 50% in early trading following the news, hitting $4.97.
The revised bid, which values bluebird at approximately $49m based on LSEG data, gives shareholders the option to choose between the higher upfront cash offer or the earlier structure that included a CVR of $6.84 per share tied to future commercial milestones.
“The amended offer price provides an alternative for stockholders who would prefer greater upfront cash consideration instead of the potential upside of the CVR,” the firms stated.
Bluebird’s board has unanimously approved the updated agreement and is urging shareholders to tender their shares in favour of the transaction.
The Massachusetts-based biotech company has struggled with ongoing financial challenges and flagged going-concern risks as early as 2021. In an effort to conserve capital, bluebird cut 25% of its workforce last year to concentrate on the commercial rollout of its three FDA-approved gene therapies, including Lyfgenia for sickle cell disease. Uptake for the treatments has so far been modest.
The company previously received a non-binding proposal from Ayrmid, the parent of Gamida Cell, for $4.50 per share upfront plus the same CVR. However, bluebird confirmed in April that Ayrmid had not submitted a binding offer.
