Mesoblast Ltd has come under a lot of pressure and plunged over 10.4% on October 25, 2017 as Israeli pharmaceutical giant Teva reported for a $44 million sell down in the company through selling of 29 million shares at a fixed price of $1.50. On the other hand, the group’s chief executive commented that this move does not reflect MSB’s prospects and seems to be associated with Teva’s own challenging period. There is also a speculation that Teva progressed with the selling of interests in MSB at the back of its strategy to emphasize on its core assets. It is worth noting that the 29 million shares in question were held by Cephalon, a speciality drug-maker, which was later acquired by Teva for US$7 billion in 2011.

Meanwhile, it is expected that there will be an interest in MSB shares from other investors. Further, management is still confident on the company’s growth given its resilient portfolio of regenerative medicine and update on trials relating to stem-cell therapy products. The group now states to have a better prospect given that the U.S. can declare the opioid crisis a “national emergency” and considering that a significant portion of the prescription drugs in the US were for painkillers for chronic back pain.

The group had recently enrolled about 159 patients into its clinical trial involving the novel allogeneic mesenchymal precursor cell (MPC) for therapy on end-stage heart failure patients.

It will be important to watch the developments on the stock given the recent update.

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