Bluebird bio receives non-binding bid for up to $110.5 million

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(Reuters) -Gene therapy maker bluebird bio said on Friday it had received a non-binding offer from peer Ayrmid for up to $110.5 million, sending its shares up 9.8% at $4.40 in extended trading.

Bluebird bio, which has been facing a cash crunch, first raised going-concern doubts three years ago. It laid off a quarter of its workforce last year to focus on launching three gene therapies, including Lyfgenia for sickle cell disease, which has had slow uptake.

Ayrmid, the parent company of cell therapy developer Gamida Cell, offered to acquire bluebird for $4.50 per share upfront, totalling about $43.8 million, according to Reuters calculations using data compiled by LSEG.

The privately held UK company also offered an additional $6.84 per share, representing about $66.6 million, contingent upon bluebird achieving certain sales milestones.

In February, bluebird bio said it had agreed to be taken private by Carlyle Group and SK Capital Partners, for $3 per share upfront along with the same $6.84 per share, contingent upon it achieving certain sales milestones.

Bluebird said its board is reviewing the Ayrmid proposal in consultation with its legal and financial advisors, and the board has not changed its recommendation in support of the Carlyle and SK Capital Partners deal.

(Reporting by Puyaan Singh in Bengaluru; Editing by Vijay Kishore)