Insights

Why does the Mesoblast (ASX:MSB) share price keep falling?

The Mesoblast Limited (ASX: MSB) share price has been falling lately – could its April announcement and talk of another class action be why?
The post Why does the Mesoblast (ASX:MSB) share price keep falling? appeared first on The Motley Fool Australia. –

asx share price falling lower represented by investor wearing paper bag on head with sad face

Shares in Mesoblast Limited (ASX: MSB) were once the talk of the ASX, but they’ve been plummeting recently.

The Mesoblast share price has fallen 11.5% since the company’s last announcement on 30 April.

In the April update, Mesoblast released its quarterly results and the results from those aged under 65 involved in its COVID-19 acute respiratory distress syndrome trial.

But it’s what might not have been released that could have investors worried. 

Class action lawsuits against Mesoblast

Last week, the Australian Financial Review (AFR) reported that its attempts to get information from Mesoblast about participants of the trial aged over 65 had been unsuccessful.

It’s likely the company’s silence is not doing much to soothe anxious investors. Particularly, as Mesoblast is no stranger to failing to disclose important information on its drug Remestemcel-L.

As the Motley Fool touched on in October last year, Mesoblast is facing multiple class-action lawsuits in the US. It has been accused of making false or misleading statements to investors and failing to disclose adverse facts about Remestemcel-L.

In addition, an Australian law firm is preparing to engage in a class-action claim against Mesoblast, according to the AFR. The firm states Mesoblast engaged in misleading or deceptive conduct to investors and breaches of disclosure when it promoted Remestemcel-L’s prospects.

The Australian law firm, Phi Finney McDonald, is alleging that Mesoblast misrepresented Remestemcel-L’s effectiveness and potential benefits or the significance of trial results. It also alleges Mesoblast failed to disclose flaws in study design and statistics to the market.

Phi Finney McDonald’s director Tim Finney was quoted by the AFR as saying:

In terms of the potential application for COVID induced ARDS – we intend to allege Mesoblast made claims regarding the success of trials that did not compare apples to apples in terms of clinical outcomes.

We’re yet to hear anything more from Mesoblast, nor anything out of the courts involved in the class actions against Mesoblast.

Mesoblast share price snapshot

The Mesoblast share price has performed poorly on the ASX of late and is down 24% year to date. It’s also fallen 48% over the last 12 months.

The company has a market capitalisation of around $1.1 billion, with approximately 648 million shares outstanding.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Brooke Cooper 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.

The post Why does the Mesoblast (ASX:MSB) share price keep falling? appeared first on The Motley Fool Australia.

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!