Bluebird bio, Inc. has entered its first Medicaid agreement for sickle cell disease gene therapy Lyfgenia with Michigan, boosting its shares by 9% in premarket trading.

Lyfgenia, a one-time FDA-approved cell-based gene therapy with a $3.1 million price tag, employs a lentiviral vector for genetic modification.

Negotiations are ongoing with 15 other Medicaid agencies, covering about 80% of the Medicaid-insured population in the U.S.

The company's outcomes-based contract includes a three-year patient tracking and offers rebates for hospitalizations due to sickle cell complications.

Bluebird is committed to equitable access for Medicaid patients, creating outcomes-based contracts with risk-sharing for LYFGENIA.

Chief commercial officer Tom Klima advocates for the necessity of timely access to gene therapy for Medicaid-insured sickle cell disease patients.

Bluebird bio is collaborating with the Center for Medicare and Medicaid Innovation on a model to improve access to cell and gene therapies starting in 2025.