Mesoblast

AU: MSB

AU$1986.3m market cap

AU$3.41 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

Mesoblast has initiated a 300-patient randomized, controlled Phase III trial of remestemcel-L (Ryoncil for the acute graft versus host disease (aGvHD) indication) in COVID-19 patients with moderate/severe acute respiratory distress syndrome (ARDS) who are on ventilator support. The primary endpoint is all-cause mortality up to 30 days post randomization. Recruitment is expected to complete in three to four months, although there are three interim analyses (after 30%, 45% and 60% enrolment) where the trial can be stopped early for efficacy or futility. Based on this, we expect a readout some time in H220, closer to the end of the year if the trial is not halted at an interim analysis.

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 02/07/2020
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 (11.7) 133.6 141.0
Relative* (14.3) 97.3 164.5
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