Why the Mesoblast (ASX:MSB) share price is surging 14%

The Mesoblast (ASX: MSB) share price is surging today after the company reported promising COVID-19 trial results in its quarterly update.
The post Why the Mesoblast (ASX:MSB) share price is surging 14% appeared first on The Motley Fool Australia. –

increase in asx medical software share price represented by doctor making excited hands up gesture

The Mesoblast Limited (ASX: MSB) share price is surging this morning after the Aussie company’s latest quarterly results. The cellular medicine manufacturer provided an update for the third quarter ended 31 March 2021 (Q3 2021). 

At the time of writing, the Mesoblast share price is trading at $2.09, up 14.21%. 

Why is the Mesoblast share price rocketing?

The Aussie medicine company this morning announced results from its COVID-19 acute respiratory distress syndrome (ARDS) trial.

Mesoblast CEO Silviu Itescu said, “We are very excited about the top-line results announced today from the trial of remestemcel-L in patients on mechanical ventilation due to COVID-19”.

Results showed that patients receiving remestemcel-L had reduced mortality through 60 days in the pre-specified population under 65 years old. In fact, those using Mesoblast’s drug saw 46% lower mortality through day 50.

The trial also showed mortality reduction from the drug was “accompanied by increased days alive off mechanical ventilation and reduced days in hospital”.

Mr Itescu said the results have “the potential to make a substantial impact in outcomes for this critical patient population”. Investors are driving the Mesoblast share price higher in early trade on the back of this morning’s trial updates.

Mesoblast has now entered into a license and collaboration agreement with Novartis for the development, manufacture and commercialisation of remestemcel-L with an initial focus on treating severe COVID-19.

The company also completed a US$110 million private placement during the quarter. That helped boost the company’s cash balance to US$158.3 million at quarter-end with net cash usage of US$25.8 million. 

The Aussie healthcare group continues to engage with the United States Food and Drug Administration (FDA). Mesoblast is seeking to gain approval to use remestemcel-L in treating steroid-refractory Acute Graft Versus Host Disease.

In further news driving the Mesoblast share price, results from the company’s chronic lower back pain (CLBP) trial were also promising. The results indicated that treatment “may be greatest when inflammation is high and before irreversible fibrosis has occurred in the intervertebral disc”.

Foolish takeaway

The March quarter was another action-packed one for the biotech and has resulted in the Mesoblast share price surging higher this morning. This will come as welcome news for shareholders, with the company’s shares still trading around 20% lower since mid-February. 

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 Ken Hall 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 the Mesoblast (ASX:MSB) share price is surging 14% 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!