Mesoblast Ltd (ASX:MSB) edges higher today opening the market at a high of $1.94 per share with a market cap of $984.81 million ahead of its recent turbulent month of activity on the ASX. Mesoblast Ltd is an Australian based regenerative medicine developer and manufacturer specializing in the research of innovative cellular medicines. The company boasts a diverse portfolio of cell-based product candidates across three programs in Phase III clinical trials. Consistent outcomes of which have led to 4 potential product candidates for Mesoblast’s portfolio of product offerings.
This morning’s 8% rally to the company’s share price follows on from exciting news for the aforementioned product candidates, where Mesoblast announced a new agreement with integrated solutions provider Lonza Group AG. The new agreement will enter the two companies into commercial manufacturing of Mesoblast’s lead allogeneic cell therapy product, remestemcel-L, for the treatment of ‘pediatric steroid-refractory acute graft versus host disease’ (aGVHD).
This therapy treatment is intended to treat the potential rejection in patients receiving bone marrow transplants (BMT), where (aGVHD) subsequently causes inflammation leading to tissue damage in the skin, gut, and liver. Currently, there are no products approved in the US for treating this disease in children under 12, however, this morning’s announcement will see the new agreement facilitating inventory building ahead of it’s planned the launch of remestemcel-L in the US.
Pending Mesoblasts filing of the rolling Biologics License Application (BLA) to the US Food and Drugs Administration (FDA), the treatment will be fast-tracked for review with an expectation for the product launch in the following year. Lonza Group AG is a Swiss-based multinational chemical and biotechnology company operating in Europe, North America, and South Asia; the company provides product development services and the agreement with Mesoblast will expand their Singapore cGMP facilities to meet long-term growth and capacity needs for remestemcel-L.
Mesoblast Chief Executive Dr Silviu Itescu commented on the announcement stating that: “…we [Mesoblast] are in a position to meet projected commercial demand as we plan to roll out the first of our allogeneic cell therapies to people around the world…”. Investors have reacted favourably towards this new agreement which follows only one week after its announcement to enter into a strategic partnership with pharmaceutical firm Grünenthal for the development and commercialisation of product candidate MPC-06-ID, intended to treat chronic back pain. Mesoblast is striving to build a diverse portfolio of pipeline products.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
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