Insights

The Mesoblast (ASX:MSB) share price has dropped 12% in a month. What’s happening?

Mesoblast shares are swimming in a sea of red.
The post The Mesoblast (ASX:MSB) share price has dropped 12% in a month. What’s happening? appeared first on The Motley Fool Australia. –

The Mesoblast Limited (ASX: MSB) share price is edging higher during trade on Thursday. At market close, it is up 0.99% and is now changing hands at $1.53 each.

Despite the gains today, shares in the small cap biotech company have slipped 12% into the red this past month, capping off a difficult year for shareholders.

This is ahead of the S&P/ASX 300 Pharmaceuticals & Biotechnology index (AXPBKD) which has clicked around 8% lower in this time.

What’s headwinds has the Mesoblast share price faced lately?

Zooming out past the last month, the Mesoblast share price dove off the springboard after the company released its FY21 earnings on 31 August.

Here the company recorded a substantial 77% down-step in revenue over the prior year, resulting in a net loss after tax (NLAT) of US$98.8 million.

Perhaps more alarming, is concerns the company may need to hit the capital markets again, to raise more funds via debt or from investors.

In its report, the company acknowledged that “cash inflows will be required” in order to service its existing debt facility.

This may depend on whether it can form “more strategic partnerships, or restructure existing loan agreements, and have prepared the financial report on a going concern basis”.

Since its FY21 was released, Mesoblast’s share price has dropped 22% from a previous high of $1.98.

Then came reports that the company was facing increasing scrutiny from the US Food and Drug Administration (FDA) on its remestemcel-L label.

The FDA requires Mesoblast to provide additional data before it is approved for emergency use in the treatment of acute respiratory distress syndrome (ARDS).

Mesoblast CEO reassured the market that everything is fine regarding the FDA’s spotlight, especially after the drug candidate was found to reduce the incidence of ARDS in COVID-19 patients.

Whilst this secured a swift recovery in the Mesoblast share price, it wasn’t enough to overcome the selling pressures to date.

Aside from this, there has been no price-sensitive information that is remarkable for the company in this time.

Mesoblast share price snapshot

The Mesoblast share price has been swimming in a sea of red this year to date, and also over the past 12 months.

It has posted a loss of 32% since January 1, extending its loss over the last year to 54%.

Both of these results have lagged the S&P/ASX 200 index (ASX: XJO)’s climb of around 25% this past year.

The post The Mesoblast (ASX:MSB) share price has dropped 12% in a month. What’s happening? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Mesoblast right now?

Before you consider Mesoblast , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Mesoblast wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

These are the 10 most shorted ASX shares

These are the 10 most shorted ASX shares

These are the 10 most shorted ASX shares

These are the 10 most shorted ASX shares

Top broker tips Mesoblast (ASX:MSB) share price to double in value

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!