2020 Q1 Form 10-K Financial Statement

#000129397120000007 Filed on February 18, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 2018 Q4
Revenue $0.00 $0.00 $19.24M
YoY Change -100.0% -100.0% 361.68%
Cost Of Revenue $1.025M $2.978M $800.0K
YoY Change 138.37% 236.5%
Gross Profit -$1.025M -$2.978M $18.40M
YoY Change -108.51% -105.55% 338.1%
Gross Profit Margin 95.62%
Selling, General & Admin $73.25M $235.8M $53.50M
YoY Change 21.51% 35.44% 83.85%
% of Gross Profit 290.76%
Research & Development $154.1M $327.1M $119.7M
YoY Change 25.67% -27.08% 29.27%
% of Gross Profit 650.54%
Depreciation & Amortization $4.880M $4.100M $4.550M
YoY Change 29.1% -69.4% 25.0%
% of Gross Profit 24.73%
Operating Expenses $227.4M $563.0M $176.2M
YoY Change 24.3% -10.16% 45.7%
Operating Profit -$144.5M -$563.0M -$157.0M
YoY Change -15.6% -1.58% 34.42%
Interest Expense $5.355M $17.38M $4.000M
YoY Change -46.99% 18.85% 700.0%
% of Operating Profit
Other Income/Expense, Net -$4.447M -$9.984M $1.900M
YoY Change 31.22% -609.13% -2000.0%
Pretax Income -$202.5M -$555.6M -$148.8M
YoY Change 23.14% 0.02% 27.18%
Income Tax $94.00K -$500.0K $200.0K
% Of Pretax Income
Net Earnings -$202.6M -$789.6M -$149.0M
YoY Change 23.21% 42.11% 27.12%
Net Earnings / Revenue -774.43%
Basic Earnings Per Share -$3.64 -$14.31
Diluted Earnings Per Share -$3.64 -$14.31 -$2.724M
COMMON SHARES
Basic Shares Outstanding 55.61M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2020 Q1 2019 2018 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.018B $1.107B $1.891B
YoY Change -41.16% -20.13% 46.61%
Cash & Equivalents $346.6M $327.2M $402.6M
Short-Term Investments $671.7M $779.2M $1.489B
Other Short-Term Assets $54.40M $45.30M $33.70M
YoY Change 38.07% 34.42% 13.85%
Inventory
Prepaid Expenses $40.21M $19.76M
Receivables $2.400M $400.0K
Other Receivables $0.00 $0.00
Total Short-Term Assets $967.5M $1.152B $1.419B
YoY Change -29.12% -18.8% 7.27%
LONG-TERM ASSETS
Property, Plant & Equipment $153.9M $337.1M $246.6M
YoY Change -48.45% 36.7% 23.55%
Goodwill $13.13M $13.13M
YoY Change 0.0%
Intangibles $13.25M $13.17M
YoY Change -22.22%
Long-Term Investments $107.7M $131.5M $506.1M
YoY Change -73.66% -74.02% 56.11%
Other Assets $79.19M $79.20M $44.81M
YoY Change 95.05% 76.79% 87.16%
Total Long-Term Assets $561.6M $575.2M $823.8M
YoY Change -27.4% -30.18% 42.58%
TOTAL ASSETS
Total Short-Term Assets $967.5M $1.152B $1.419B
Total Long-Term Assets $561.6M $575.2M $823.8M
Total Assets $1.529B $1.727B $2.243B
YoY Change -28.5% -22.98% 18.01%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $30.53M $43.00M $17.83M
YoY Change 1.08% 141.57% 38.51%
Accrued Expenses $115.5M $136.4M $96.70M
YoY Change 83.33% 41.05% 75.18%
Deferred Revenue $6.355M $18.60M
YoY Change -44.69% -27.55%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $1.400M
YoY Change -100.0% 27.27%
Total Short-Term Liabilities $184.4M $223.6M $146.4M
YoY Change 25.71% 52.73% 53.15%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $153.3M
YoY Change -100.0% -0.9%
Other Long-Term Liabilities $2.784M $218.9M $3.107M
YoY Change -98.73% 277.41% 11.76%
Total Long-Term Liabilities $2.784M $218.9M $3.107M
YoY Change -98.73% 3.6% 11.76%
TOTAL LIABILITIES
Total Short-Term Liabilities $184.4M $223.6M $146.4M
Total Long-Term Liabilities $2.784M $218.9M $3.107M
Total Liabilities $408.7M $442.4M $357.8M
YoY Change 11.51% 23.64% 29.1%
SHAREHOLDERS EQUITY
Retained Earnings -$2.480B -$1.499B
YoY Change 64.02%
Common Stock $556.0K $547.0K
YoY Change 10.73%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.120B $1.285B $1.885B
YoY Change
Total Liabilities & Shareholders Equity $1.529B $1.727B $2.243B
YoY Change -28.5% -22.98% 18.01%

Cashflow Statement

Concept 2020 Q1 2019 2018 Q4
OPERATING ACTIVITIES
Net Income -$202.6M -$789.6M -$149.0M
YoY Change 23.21% 42.11% 27.12%
Depreciation, Depletion And Amortization $4.880M $4.100M $4.550M
YoY Change 29.1% -69.4% 25.0%
Cash From Operating Activities -$206.1M -$564.4M -$129.7M
YoY Change 33.71% 36.51% 36.01%
INVESTING ACTIVITIES
Capital Expenditures $10.68M $71.03M -$12.90M
YoY Change -44.74% 27.43% -31.49%
Acquisitions
YoY Change
Other Investing Activities $235.3M $584.1M -$408.2M
YoY Change -1437.41% -193.64% -979.36%
Cash From Investing Activities $224.6M $507.8M -$421.1M
YoY Change -708.4% -174.74% -1626.28%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $963.0K $21.19M 1.920M
YoY Change -90.58% -97.13% -99.67%
NET CHANGE
Cash From Operating Activities -$206.1M -$564.4M -129.7M
Cash From Investing Activities $224.6M $507.8M -421.1M
Cash From Financing Activities $963.0K $21.19M 1.920M
Net Change In Cash $19.42M -$35.39M -548.9M
YoY Change -110.74% -90.04% -205.45%
FREE CASH FLOW
Cash From Operating Activities -$206.1M -$564.4M -$129.7M
Capital Expenditures $10.68M $71.03M -$12.90M
Free Cash Flow -$216.8M -$635.4M -$116.8M
YoY Change 24.97% 35.44% 52.62%

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CY2019 us-gaap Nature Of Operations
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Description of the business<div style="text-indent:18pt;margin-top:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">bluebird bio, Inc. (the “Company” or “bluebird”) was incorporated in Delaware on April 16, 1992, and is headquartered in Cambridge, Massachusetts. The Company is a biotechnology company committed to researching, developing and commercializing potentially transformative gene therapies for severe genetic diseases and cancer. Since its inception, the Company has devoted substantially all of its resources to its research and development efforts relating to its product candidates, including activities to manufacture product candidates, conduct clinical studies of its product candidates, perform preclinical research to identify new product candidates and provide selling, general and administrative support for these operations, including commercial-readiness activities.</span></div><div style="text-indent:18pt;margin-top:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">The Company’s programs in severe genetic diseases include its programs in β-thalassemia (TDT), sickle cell disease (SCD), and cerebral adrenoleukodystrophy (CALD). The Company’s programs in oncology are focused on developing novel T cell-based immunotherapies, including chimeric antigen receptor (CAR) and T cell receptor (TCR) T cell therapies. Idecabtagene vicleucel, or ide-cel, and bb21217, which are product candidates in oncology under the Company’s collaboration arrangement with Bristol-Myers Squibb ("BMS"), formerly Celgene Corporation (prior to its acquisition by BMS in November 2019), are CAR T cell product candidates for the treatment of multiple myeloma. Please refer to Note 11, </span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;">Collaborative arrangements,</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> for further discussion of the Company’s collaboration with BMS.</span></div><div style="text-indent:18pt;margin-top:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">In June 2019, the Company received conditional marketing authorization from the European Commission for ZYNTEGLO</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">TM</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> gene therapy (autologous CD34+ cells encoding β</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">A-T87Q</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">-globin gene), also referred to as LentiGlobin for TDT, for the treatment of patients 12 years and older with TDT who do not have a β</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">0</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">/β</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">0</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> genotype, for whom hematopoietic stem cell (HSC) transplantation is appropriate but a human leukocyte-matched related HSC donor is not available. Since receiving conditional marketing authorization for ZYNTEGLO, the Company has continued to advance its commercial readiness activities. Through December 31, 2019, the Company had not generated any revenue from product sales.</span></div><div style="text-indent:18pt;margin-top:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">In accordance with Accounting Standards Codification ("ASC") 205-40, </span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;">Going Concern</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">, the Company evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. The Company has incurred losses since inception and to date has financed its operations primarily through the sale of equity securities and, to a lesser extent, through collaboration agreements and grants from governmental agencies and charitable foundations. As of December 31, 2019, the Company had an accumulated deficit of $2.28 billion. During the year ended December 31, 2019, the Company incurred a loss of $789.6 million and used $564.4 million of cash in operations. The Company expects to continue to generate operating losses and negative operating cash flows for the next few years and will need additional funding to support its planned operating activities through profitability. The transition to profitability is dependent upon the successful development, approval, and commercialization of the Company’s products and product candidates and the achievement of a level of revenues adequate to support its cost structure. </span></div><div style="text-indent:18pt;margin-top:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">As of December 31, 2019, the Company had cash, cash equivalents and marketable securities of $1.24 billion. The Company expects its cash, cash equivalents and marketable securities will be sufficient to fund current planned operations for at least the next twelve months from the date of issuance of these financial statements, though it may pursue additional cash resources through public or private equity or debt financings or by establishing additional collaborations with other companies. Management's expectations with respect to its ability to fund current planned operations is based on estimates that are subject to risks and uncertainties. If actual results are different from management's estimates, the Company may need to seek additional strategic or financing opportunities sooner than would otherwise be expected. However, there is no guarantee that any of these strategic or financing opportunities will be executed or executed on favorable terms, and some could be dilutive to existing stockholders. If the Company is unable to obtain additional funding on a timely basis, it may be forced to significantly curtail, delay, or discontinue one or more of its planned research or development programs or be unable to expand its operations or otherwise capitalize on its commercialization of its product candidates.</span></div>
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CY2019 us-gaap Use Of Estimates
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<div style="margin-top:18pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%;">Use of estimates</span></div><div style="text-indent:18pt;margin-top:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including: expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. This process may result in actual results differing materially from those estimated amounts used in the preparation of the financial statements.</span></div><div style="text-indent:18pt;margin-top:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">Estimates and judgments are used in the following areas, among others: future undiscounted cash flows and subsequent fair value estimates used to assess potential and measure any impairment of long-lived assets, including goodwill and intangible assets, and the measurement of right-of-use assets and lease liabilities, contingent consideration, stock-based compensation expense, accrued expenses, income taxes, and the assessment of the Company's ability to fund its operations for at least the next twelve months from the date of issuance of these financial statements.  In addition, estimates and judgments are used in the Company’s accounting for its revenue-generating arrangements, in particular as it relates to determining the standalone selling price of performance obligations, evaluating whether an option to acquire additional goods and services represents a material right, estimating the total transaction price, including estimating variable consideration and the probability of achieving future potential development and regulatory milestones, and the period of performance over which revenue may be recognized.</span></div>
CY2019 us-gaap Concentration Risk Credit Risk
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<div style="margin-top:18pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%;">Concentrations of credit risk and off-balance sheet risk</span></div><div style="text-indent:18pt;margin-top:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents and available-for-sale securities. The Company maintains its cash and cash equivalent balances with high-quality financial institutions and, consequently, the Company believes that such funds are subject to minimal credit risk. The Company’s marketable securities primarily consist of U.S. Treasury securities, U.S. government agency securities, certificates of deposit, corporate bonds, and commercial paper, and potentially subject the Company to concentrations of credit risk. The Company has adopted an investment policy that limits the amounts the Company may invest in any one type of investment and requires all investments held by the Company to be at least AA+/Aa1 rated, thereby reducing credit risk exposure.</span></div>
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0 USD
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67200000 USD
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787500000 USD
CY2019Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer
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79600000 USD
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13400000 USD
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CY2019Q4 blue Accrued License And Milestone Fees
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300000 USD
CY2018Q4 blue Accrued License And Milestone Fees
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21618000 USD
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16799000 USD
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11891000 USD
CY2019Q4 blue Accrued Collaboration Research Costs Current
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27142000 USD
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3358000 USD
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2354000 USD
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17515000 USD
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CY2018Q4 us-gaap Accrued Liabilities And Other Liabilities
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33257000 USD
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CY2019Q4 us-gaap Purchase Obligation
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PreferredStockSharesOutstanding
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CY2018Q4 us-gaap Preferred Stock Shares Outstanding
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20998000 USD
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16931000 USD
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3800000 USD
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522000 USD
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522000 USD
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2200000 shares
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P6Y
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P7Y3M18D
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P6Y
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P6Y
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0.000
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P6Y
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P7Y3M18D
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62.03
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324000 USD
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115000 USD
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612000 USD
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95000 USD
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