Mesoblast

AU: MSB

AU$1975.4m market cap

AU$3.38 last close

Mesoblast is developing adult stem-cell therapies based on its proprietary MPC and MSC platforms. Its lead programmes are in pediatric aGvHD, heart failure and lower back pain. Approval is expected in the US for Ryoncil for aGvHD in 2020.

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. The company submitted a BLA to the FDA in February 2020, which was accepted for priority review with a PDUFA date at the end of September. Importantly, Mesoblast has initiated a 300-patient randomized, controlled Phase III trial of remestemcel-L in COVID-19 patients with moderate/severe acute respiratory distress syndrome (ARDS) who are on ventilator support. There are three interim looks so data are likely in H220. The company is also expecting Phase III data in heart failure and chronic low back pain in mid-2020.

Y/E Jun
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 17.0 (66.2) (68.6) (8.14) N/A N/A
2019A 16.0 (75.4) (86.5) (15.69) N/A N/A
2020E 61.2 (32.0) (45.6) (6.92) N/A N/A
2021E 50.9 (35.1) (47.4) (8.12) N/A N/A
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; FY19 royalties were US$5.0m.

Last updated on 13/08/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (US$m) 59.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (2.9) (0.3) 128.4
Relative* (5.0) (11.7) 143.9
52-week high/low A$4.9/A$1.1
*% relative to local index
Key management
Josh Muntner CFO
Silviu Itescu Chief Executive Officer & Managing Director