Mesoblast (ASX:MSB) Slides as Market Dips, Brokers Maintain Targets Up to AUD 4.45

Sonal Goyal

02 March 2026 05:30 PM AEDT

Mesoblast (ASX:MSB) Slides as Market Dips, Brokers Maintain Targets Up to AUD 4.45

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Highlights

Mesoblast shares fell 8.26% to AUD 2.06, while brokers maintain Buy ratings with targets up to AUD 4.45.
H1 FY26 revenue rose to USD 51.3 million (AUD 78.3 million), driven by USD 57.0 million in Ryoncil® gross sales.
The company ended the half with USD 130.0 million in cash and guided FY2026 Ryoncil® net revenue of USD 110–120 million.

Shares of Mesoblast Limited (ASX:MSB) declined 8.26% to AUD 2.06 on 2 March, underperforming the broader S&P/ASX 200, which fell 0.33% to 9,168.00. The stock is down 18.13% over the past year, despite broker consensus ratings indicating upside potential and a half-year result driven by the commercial launch of Ryoncil® in the United States.

Brokers Maintain Buy Ratings

According to EODHD/Others data, Mesoblast carries a consensus Buy rating with an average target price of AUD 3.66.

Recent broker targets include:

Jefferies: Buy, target price AUD 3.20
Bell Potter Securities (Institutional): Buy, target price AUD 4.45

At the last traded price of AUD 2.06, the consensus target implies potential upside of more than 75%.

Ryoncil® Launch Drives Revenue Surge

Mesoblast reported financial results for the half-year ended 31 December 2025 (H1 FY26), highlighting the impact of its U.S. commercial launch of Ryoncil® (remestemcel-L-rknd).

Total revenue rose to USD 51.3 million (approximately AUD 78.3 million), compared with USD 3.2 million in the prior corresponding period. Gross sales of Ryoncil® reached USD 57.0 million, translating to net product revenue of USD 48.7 million after adjustments.

Ryoncil® generated gross profit of USD 44.2 million, excluding amortisation, versus nil in the prior year period. Direct selling costs totalled USD 7.7 million.

Reported net loss narrowed to USD 40.2 million from USD 47.9 million a year earlier. Adjusted for a USD 23.0 million inventory reversal in the prior year, the year-on-year improvement in net loss was USD 30.7 million.

Cash Position and Funding

Net operating cash spend during the period was USD 30.3 million. Mesoblast reported a period-end cash balance of USD 130.0 million.

The company also entered into a USD 125.0 million five-year non-dilutive credit facility. A second tranche of USD 50.0 million remains available to be drawn until 30 June 2026.

Mesoblast has guided FY2026 Ryoncil® net revenue to range between USD 110 million and USD 120 million.

Pipeline and Regulatory Progress

Operational updates included expansion efforts for Ryoncil® into additional inflammatory indications and advancement of rexlemestrocel-L programs in chronic low back pain and chronic heart failure.

The company is progressing a confirmatory Phase 3 trial in chronic discogenic low back pain and preparing regulatory filings in heart failure with reduced ejection fraction.

Ryoncil® has now onboarded 49 transplant centres in the United States, targeting 64 centres that account for 94% of U.S. transplants in the approved indication.

Crucial Financial Metrics

Share price: AUD 2.06 (down 8.26% on 2 March)
1-year performance: -18.13%
Consensus target price: AUD 3.66
H1 FY26 revenue: USD 51.3m (AUD 78.3m)
Ryoncil® gross sales: USD 57.0m
Reported net loss: USD 40.2m
Period-end cash balance: USD 130.0m
FY2026 Ryoncil® revenue guidance: USD 110m–USD 120m

Mesoblast’s share price decline on 2 March contrasts with its half-year financial performance, which was underpinned by the commercial rollout of Ryoncil® and a significant increase in revenue. With broker targets above current trading levels and FY2026 revenue guidance in place, the company continues to focus on commercial expansion and late-stage clinical development programs.

Frequently Asked Questions

Why did Mesoblast shares fall on 2 March?
Mesoblast shares declined 8.26% to AUD 2.06 on 2 March, underperforming the broader S&P/ASX 200 index, which fell 0.33% on the same day.
What is the broker consensus target price for Mesoblast?
EODHD/Others data shows a consensus Buy rating with an average target price of AUD 3.66. Bell Potter has a target of AUD 4.45 and Jefferies has a target of AUD 3.20.
How much revenue did Mesoblast generate in H1 FY26?
Mesoblast reported total revenue of USD 51.3 million (approximately AUD 78.3 million) for the half-year ended 31 December 2025, primarily driven by Ryoncil® sales.

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