Intelligence Financial APP learned that USA gene therapy company bluebird bio (BLUE.US) announced plans to lay off about a quarter of its staff, as this biotechnology company faces the challenges encountered by gene therapy companies. Gene therapy is an expensive one-time therapy used to treat incurable diseases.

The company, headquartered in Somerville, Massachusetts, stated in a declaration that this move is part of the company's restructuring, expected to allow the company to focus on launching new products, and reduce cash operating expenses by 20% in the third quarter next year. According to a document earlier this month, Bluebird has about 375 employees.

It is understood that for over a decade, bluebird has been a pioneer in gene therapy, focusing on severe genetic diseases. The company is recognized for introducing gene therapy from clinical research into the commercial market, with three therapies approved by the FDA in less than two years.

However, despite nearly 20 gene therapies approved in the US for various diseases such as sickle cell disease and hemophilia, the high cost of treatment, reaching millions of dollars, along with other factors, has slowed down the popularization of this therapy. Bluebird has struggled to transform gene therapy into a successful business and has expressed 'substantial doubt' about its continued operation.

In pre-market trading on Tuesday, bluebird's stock price rose by 1.80%. Over the past 12 months, the company's market cap has evaporated by 84%.

CEO Andrew Obenshain stated in the declaration, "We are taking decisive action to optimize our cost structure, enabling the company to attract the necessary additional funds to seize the significant business opportunities before us."