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- Mesoblast (MSB) raises US$45 million (A$64.5 million) through its private placement
- The placement, led by the company’s largest shareholder M&G Investments UK, issued 86.7 million shares priced at 75 cents each
- Mesoblast is using the money to commercialise its lead product, remestemcel-L, which aims to treat children with steroid-refractory acute graft versus host disease
- The company also plans to undertake another phase three clinical trial of rexlemestrocel-L to confirm it reduces chronic lower back pain prior to applying for FDA approval
- After coming out of a trading halt, MSB shares are down 5.91 per cent to trade at 87.5 cents as of 11:33 am AEST
Mesoblast (MSB) has completed its private placement which raised US$45 million (A$64.5 million).
The healthcare company issued 86.7 million shares priced at 75 cents each which marks a 5 per cent discount to the 30-day volume-weighted average price.
The placement was led by Mesoblast’s largest shareholder, UK-based M&G Investments, and was strongly supported by major Australian and American shareholders.
Mesoblast plans to use the funds to commercialise remestemcel-L to treat children with steroid-refractory acute graft versus host disease (SR-aGVHD). The company is seeking approval from the US Food and Drug Administration (FDA) under a resubmission of its Biologics Licence Application.
The company will also use the money to begin a second phase three clinical trial of rexlemestrocel-L to confirm reduction in chronic lower back pain at 12 months as the primary endpoint for a potential FDA approval.
“We are very appreciative of the ongoing strong support from our major shareholders who recognize the potential of our technology to make a difference to patients with severe inflammatory condition,” CEO Dr Silviu Itescu said.
Following the placement, Mesoblast has US$105.5 million cash on hand.
After coming out of a trading halt, MSB shares were down 5.91 per cent to trade at 87.5 cents as of 11:33 am AEST.
