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Mesoblast (ASX:MSB) is back onto investors’ radars after the slower Christmas period, with good tidings from its sale of Ryoncil, with that product line expanding to US$35.1 million worth of sales for the December quarter.
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The news has been enough to send Mesoblast sharply higher, around +10%, as the Australian company effectively sees sales grow 60% QoQ. That move comes on the back of nearly $40M worth of shares trading hands on the Friday session. If you take Mesoblast, 4DMedical (ASX:4DX), and Lumos Diagnostics (ASX:LDX) together, you could make the case there’s a bit of a biotech rally on.
For those out of the loop, while this isn’t necessarily scientifically accurate in the literal sense, it’s true enough to describe Mesoblast’s Ryoncil drug as a stem cell-esque product, the first (and currently only) such product in its class to win FDA approval.
The company recently notched a further $125M fund line, non-dilutive, and in the background, is working to have its drug certified for adults. It’s currently targeted at children, particularly those with graft versus host disease.
“Our strong balance sheet, continued growth in quarterly sales of Ryoncil, and a new lower-cost financing facility provide greater flexibility for strategic partnerships and pursuit of label expansion for Ryoncil,” Mesoblast CEO Dr Silviu Itescu said.
The news also indicates what could be a good year for Mesoblast, which faltered last year in the second half of the year in terms of its remaining popular with Aussie day traders (and true believer long-term investors.)
I wrote in October last year that, looking at contemporaneous +30% MoM gains, the stock appeared to be getting its groove back. That remains the case.
MSB last traded at $3.23/sh today.
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