Mesoblast

AU: MSB

AU$580.9m market cap

AU$1.17 last close

Mesoblast is developing adult stem cell therapies based on its proprietary MPC and culture-expanded MSC platforms. It has six late-stage clinical trials across four areas.

Investment summary

The potentially pivotal 55 paediatric patient acute graft vs host disease (GvHD) study met its primary endpoint, with a 69% overall response rate vs 45% for historical controls (p=0.0003). Survival at day 180 was 69% compared to historical rates of 10–30% in Grade C/D disease patients. Based on these results, the company is working towards a pre-BLA meeting in the next few months. Importantly, the Phase IIb data in 159 end-stage CHF patients with an LVAD was presented at a late-breaking session at the American Heart Association (AHA). While the trial missed the primary endpoint, the company highlighted there was a significant reduction in major GI bleeding events (p=0.02), which based on prior feedback from the FDA is a clinically meaningful outcome.

Y/E Jun
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 1.9 (82.2) (83.3) (17.69) N/A N/A
2018A 17.0 (66.2) (68.6) (8.35) N/A N/A
2019E N/A N/A N/A N/A N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 15/02/2019
Industry outlook

Mesoblast is a leading mesenchymal stem cell company. It has a manufacturing alliance with Lonza. JCR Pharmaceuticals markets Mesoblast’s GvHD therapy in Japan; FY18 royalties were US$3.6m plus a US$1.5m milestone.

Last updated on 15/02/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (US$m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (11.7) (18.0) (9.0)
Relative* (15.7) (22.3) (11.1)
52-week high/low A$2.3/A$1.0
*% relative to local index
Key management
Paul Hodgkinson CFO
Silviu Itescu Chief Executive Officer & Managing Director