Mesoblast

AU: MSB

AU$955.3m market cap

AU$1.79 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 initiated a rolling BLA submission in May. Importantly, in February 2019 the company announced that its DREAM HF-1 trial of MPC-150-IM in 566 NYHA Class II to III heart failure patients dosed the last patient with results expected in H120. In September, Mesoblast announced a partnership for the EU and Latin America with Grunenthal for MPC-06-ID for back pain, which includes over $1bn in potential milestones and tiered double-digit royalties.

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 (28.7) (41.3) (7.70) N/A N/A
2021E 48.5 (42.8) (54.8) (10.22) 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 21/11/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (US$m) 12.8
Forecast gearing ratio (%) 3
Price performance
%
1m
3m
12m
Actual 7.9 23.6 35.4
Relative* 7.6 19.9 14.3
52-week high/low A$2.2/A$1.0
*% relative to local index
Key management
Josh Muntner CFO
Silviu Itescu Chief Executive Officer & Managing Director