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Highlights

  • Mesoblast is an ASX-listed biotech firm focused on developing allogenic cellular medicines for treating severe and life-threatening inflammatory conditions
  • In FY23, MSB’s revenue from royalties dropped by 26.5% YoY and commercialization revenue fell by 17% YoY
  • Itescu (Silviu) has maximum stake in MSB with a shareholding of nearly 7.78%

Mesoblast Limited (ASX: MSB) is a biotech company which is focused on developing allogenic cellular medicines for treating severe and life-threatening inflammatory conditions. The company manages a portfolio of late-stage product candidate.

In the financial year 2023 (FY23), the company recorded 26.5% YoY decline in revenue from royalties to USD 7.5 million and 17% YoY decline in commercialization revenue to USD 7.5 million. The decline in revenue was driven by a singular achievement from Takeda related to the approval of Alofisel in Japan in FY22.

The company is committed on gaining the US FDA approval for its lead mesenchymal stromal cell product Ryoncil.

Top 10 shareholders of MSB

The top 10 shareholders of MSB have nearly 23.85% shareholding in the company, while top four have 16.68% shareholdings. The highest stakes are held by Itescu (Silviu) and G to the Fourth Investments LLC, with a shareholding of nearly 7.78% and 3.87%, respectively.

Recent business update

On 31 January 2024, the company shared recent quarter results. During the quarter, the company reported progress across its three lead Phase 3 assets.

The period saw a capital raise of AUD 60.3 million and at the end of quarter, cash balance was USD 77.6 million. Revenue from royalties on sale of TEMCELL HS Inj.5 sold in Japan by the MSB’s licensee stood at USD 1.5 million.

Outlook

The focus is on advancing the Phase 3 programs in adults with SR-aGVHD and in chronic inflammatory low back pain. Moreover, cost reduction strategies are being conducted to preserve cash and strengthen balance sheet.

The company intends to tap international scale partnerships to fund clinical campaigns.

Share performance of MSB

MSB shares closed 1.79% down at AUD 0.275 apiece on 14 February 2024. With this, MSB’s share price has declined by 71.28% in the last one year and has recorded a fall of 26.57% in the past six months.

The 52-week high of MSB is AUD 1.35, recorded on 17 July 2023, while the 52-week low is AUD 0.255, recorded on 8 February 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 14 February 2024. The reference data in this report has been partly sourced from REFINITIV.