Mesoblast

AU: MSB

AU$2242.2m market cap

AU$3.87 last close

Mesoblast is developing adult stem-cell therapies based on its proprietary MPC and MSC platforms. Its lead programs 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. The company’s DREAM HF-1 trial of MPC-150-IM in 566 NYHA Class II/III heart failure patients is expected to yield results in mid-2020. In September, Mesoblast announced a partnership for the EU and Latin America with Grunenthal for MPC-06-ID for back pain (also expecting Phase III data mid year), 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 (23.8) (37.2) (5.49) N/A N/A
2021E 48.5 (37.8) (49.8) (9.28) 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 03/06/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (US$m) 8.9
Forecast gearing ratio (%) 2
Price performance
%
1m
3m
12m
Actual 18.8 67.8 166.2
Relative* 4.7 75.7 179.5
52-week high/low A$4.2/A$1.1
*% relative to local index
Key management
Josh Muntner CFO
Silviu Itescu Chief Executive Officer & Managing Director