Mesoblast Limited


MSB Details
·       Positive Interim Futility Analysis in Phase 3 for Acute Graft Versus Host Disease: Mesoblast Limited (ASX: MSB) stock surged over 6.4% on November 14, 2016 driven by the positive Interim Futility Analysis for Acute Graft Versus Host Disease in Phase 3 Trial. The group reported a positive pre-specified interim futility analysis on the Phase 3 trial for its intravenous product candidate MSC-100- IV which is used for front-line therapy in children with steroid-resistant acute graft versus host disease (aGVHD). The trial completion is forecasted to finish by the first half of 2017, and commercial launch activities are underway. At present, there are no products approved in the United States for this disease, indicating a huge opportunity for the group if its product is being approved.  Positive data from their Phase 3 trial might lead to a faster approval of MSC-100-IV in the United States. Mesoblast plans to broaden its use in adult patients with high-risk steroid-refractory aGVHD.
·       Recommendation: After facing some pressure early this year, the stock recovered over 4.4% in the last one month (as of November 11, 2016) and we give a “Hold” recommendation on the stock at the current price of $1.25
 
OFX Group Ltd


OFX Details
·       Pressure might continue further: OFX Group Ltd (ASX: OFX) stock surged over 5.9% on November 14, 2016 with some positive market sentiments. On the other hand, OFX stock fell over 37.3% in the last three months (as of November 11, 2016) impacted by the volatile environment in Australia. Management had earlier reported that there have been some challenges that the company is facing given their transition from a private company to a public company. OFX was not able to achieve their target year end profit number by more than 10%. The ongoing global uncertainty post US recent election outcome could also hurt the group’s performance in the coming months. OFX stock lost over 53% during this year to date (as of November 11, 2016) and still the stock is trading at a high P/E.
·       Recommendation: We give an “Expensive” recommendation on the stock at the current price of $1.62

---