Investors rewarded the ASX biotech share following promising clinical drug trail results.
The post Why did the Mesoblast share price rocket 54% in July? appeared first on The Motley Fool Australia. –
The Mesoblast LimitedÂ (ASX: MSB) share price skyrocketed in July.
Shares in the clinical-stage biotechnology company closed 30 June trading at 61 cents per share. On 29 July, the last trading day of the month, Mesoblast closed at 94 cents per share, up a whopping 54.1% for the month.
For some context, the All Ordinaries IndexÂ (ASX: XAO) gained 6.3% in July.
At its closing price in July, the company had market cap of $611 million.
Shares have slipped 4.8% so far in August to 89 cents per share.
What lifted the ASX biotech share in July?
The Mesoblast share price looks to have enjoyed some bargain hunting early in July after shares fell 38% in June, far outpacing the 10% loss posted by the All Ordinaries.
Aside from the companyâs quarterly activities report released on 29 July, which saw shares close the day down 2.1%, the only price-sensitive news out from Mesoblast was released on 19 July.
The update on its rexlemestrocel-L product candidate saw the Mesoblast share price close the day up 8.2%.
As The Motley Fool reported on the day:
Rexlemestrocel-L delivered an improvement in left ventricular ejection fraction (LVEF) at 12 months after a single intervention in the 565-patient randomised controlled trial in New York Heart Association (NYHA) class II/III chronic heart failure (CHF) with reduced ejection fraction (HFrEF).
Among the highlights of the clinical trial was a 68% decrease in the rate of recurrent hospitalisations from non-fatal heart attacks or strokes compared with patients in control groups.
Mesoblast shares likely received some sustained tailwinds from the positive trial outcome.
The company reported it will meet with the US Food and Drug Administration (FDA) under the regenerative medicine advanced therapy framework to work on regulatory approval in the worldâs top economy.
Mesoblast share price snapshot
Despite the strong run higher in July, the Mesoblast share price remains down 55% over the past 12 months. That compares to a full year loss of 8% posted by the All Ordinaries.
The post Why did the Mesoblast share price rocket 54% in July? appeared first on The Motley Fool Australia.
Before you consider Mesoblast Limited, 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 Limited wasn’t one of them.
The online investing service heâs run for over 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.
See The 5 Stocks
*Returns as of July 7 2022
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
3 ASX All Ordinaries shares leaping 10% or more today
Why JB Hi-Fi, Mesoblast, Pendal, and Woodside shares are pushing higher
Why is the Mesoblast share price jumping 14%?
How did ASX biotech shares perform in FY22?
These are the 10 most shorted ASX shares
Motley Fool contributor Bernd Struben has no position 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 Scott Phillips.