2020 Q1 Form 10-Q Financial Statement

#000129397120000029 Filed on May 11, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q1
Revenue $0.00 $12.47M
YoY Change -100.0% -21.85%
Cost Of Revenue $1.025M $430.0K
YoY Change 138.37% 2429.41%
Gross Profit -$1.025M $12.04M
YoY Change -108.51% -24.46%
Gross Profit Margin 96.55%
Selling, General & Admin $73.25M $60.28M
YoY Change 21.51% 72.72%
% of Gross Profit 500.61%
Research & Development $154.1M $122.6M
YoY Change 25.67% 26.3%
% of Gross Profit 1018.52%
Depreciation & Amortization $4.880M $3.780M
YoY Change 29.1% -5.97%
% of Gross Profit 31.39%
Operating Expenses $227.4M $182.9M
YoY Change 24.3% 37.96%
Operating Profit -$144.5M -$171.2M
YoY Change -15.6% 46.77%
Interest Expense $5.355M $10.10M
YoY Change -46.99% 627.81%
% of Operating Profit
Other Income/Expense, Net -$4.447M -$3.389M
YoY Change 31.22% -3046.96%
Pretax Income -$202.5M -$164.5M
YoY Change 23.14% 42.85%
Income Tax $94.00K -$15.00K
% Of Pretax Income
Net Earnings -$202.6M -$164.4M
YoY Change 23.21% 42.84%
Net Earnings / Revenue -1318.63%
Basic Earnings Per Share -$3.64
Diluted Earnings Per Share -$3.64 -$2.989M
COMMON SHARES
Basic Shares Outstanding 55.61M shares 54.95M
Diluted Shares Outstanding

Balance Sheet

Concept 2020 Q1 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.018B $1.731B
YoY Change -41.16% 54.31%
Cash & Equivalents $346.6M $221.7M
Short-Term Investments $671.7M $1.509B
Other Short-Term Assets $54.40M $39.40M
YoY Change 38.07% -7.29%
Inventory
Prepaid Expenses $40.21M
Receivables $2.400M $3.800M
Other Receivables $0.00 $0.00
Total Short-Term Assets $967.5M $1.365B
YoY Change -29.12% 17.26%
LONG-TERM ASSETS
Property, Plant & Equipment $153.9M $298.6M
YoY Change -48.45% 46.23%
Goodwill $13.13M
YoY Change
Intangibles $13.25M
YoY Change
Long-Term Investments $107.7M $408.9M
YoY Change -73.66% -8.07%
Other Assets $79.19M $40.60M
YoY Change 95.05% 65.04%
Total Long-Term Assets $561.6M $773.6M
YoY Change -27.4% 10.09%
TOTAL ASSETS
Total Short-Term Assets $967.5M $1.365B
Total Long-Term Assets $561.6M $773.6M
Total Assets $1.529B $2.139B
YoY Change -28.5% 14.56%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $30.53M $30.20M
YoY Change 1.08% 151.67%
Accrued Expenses $115.5M $63.00M
YoY Change 83.33% 4.83%
Deferred Revenue $6.355M $11.49M
YoY Change -44.69% -74.66%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change -100.0%
Total Short-Term Liabilities $184.4M $146.7M
YoY Change 25.71% 36.09%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $2.784M $219.8M
YoY Change -98.73% 540.82%
Total Long-Term Liabilities $2.784M $219.8M
YoY Change -98.73% 16.42%
TOTAL LIABILITIES
Total Short-Term Liabilities $184.4M $146.7M
Total Long-Term Liabilities $2.784M $219.8M
Total Liabilities $408.7M $366.5M
YoY Change 11.51% 23.57%
SHAREHOLDERS EQUITY
Retained Earnings -$2.480B
YoY Change
Common Stock $556.0K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.120B $1.772B
YoY Change
Total Liabilities & Shareholders Equity $1.529B $2.139B
YoY Change -28.5% 14.56%

Cashflow Statement

Concept 2020 Q1 2019 Q1
OPERATING ACTIVITIES
Net Income -$202.6M -$164.4M
YoY Change 23.21% 42.84%
Depreciation, Depletion And Amortization $4.880M $3.780M
YoY Change 29.1% -5.97%
Cash From Operating Activities -$206.1M -$154.2M
YoY Change 33.71% 41.66%
INVESTING ACTIVITIES
Capital Expenditures $10.68M $19.32M
YoY Change -44.74% 159.27%
Acquisitions
YoY Change
Other Investing Activities $235.3M -$17.59M
YoY Change -1437.41% -93.16%
Cash From Investing Activities $224.6M -$36.91M
YoY Change -708.4% -86.06%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $963.0K $10.22M
YoY Change -90.58% -85.74%
NET CHANGE
Cash From Operating Activities -$206.1M -$154.2M
Cash From Investing Activities $224.6M -$36.91M
Cash From Financing Activities $963.0K $10.22M
Net Change In Cash $19.42M -$180.8M
YoY Change -110.74% -40.09%
FREE CASH FLOW
Cash From Operating Activities -$206.1M -$154.2M
Capital Expenditures $10.68M $19.32M
Free Cash Flow -$216.8M -$173.5M
YoY Change 24.97% 49.2%

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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 ZYNTEGLO™ (autologous CD34+ cells encoding βA-T87Q-globin gene) gene therapy as a treatment for transfusion-dependent β-thalassemia, or TDT; its LentiGlobin</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;">®</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%;"> product candidate as a treatment for sickle cell disease, or SCD; and its Lenti-D™ product candidate as a treatment for cerebral adrenoleukodystrophy, or 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 ("Celgene") 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 9, </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 (formerly referred to as LentiGlobin for TDT) for the treatment of patients 12 years and older with TDT who do not have a β0/β0 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 commercialization readiness activities. Through March 31, 2020, the Company had not generated any revenue from product sales of ZYNTEGLO.</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 shares of the Company's stock and, to a lesser extent, through collaboration agreements and grants from governmental agencies and charitable foundations. As of March 31, 2020, the Company had an accumulated deficit of $2.48 billion. During the three months ended March 31, 2020, the Company incurred a loss of $202.6 million and used $206.1 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 March 31, 2020, the Company had cash, cash equivalents and marketable securities of $1.02 billion. The Company expects its cash, cash equivalents and marketable securities will be sufficient to fund current planned operations for at least 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, strategic collaborations or other sources. 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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