- Mesoblast (MSB) cuts back on its cash usage in the third quarter of its 2022 financial year as it works to progress its medical pipeline
- Spending on operating activities was reduced by 40 per cent, while revenues grew by 5 per cent for the quarter
- Highlights in Mesoblast’s drug development centred around Remestemcel-L, which made progress in studies for COVID-19, inflammatory bowel disease, and steroid-refractory acute graft versus host disease (SR-aGvHD)
- At the end of the period, the company had US$76.8 million (A$107 million) in cash, with the option to draw down on an additional US$40 million from existing finance facilities
- Shares in Mesoblast are trading 1.32 per cent lower today at 97 cents each at 11:56 am AEST
Mesoblast (MSB) has cut back on its cash usage in the third quarter of the 2022 financial year as it works to progress its medical pipeline.
The company reiterated its quarterly financial numbers in a fresh report released to the US market today, highlighting a reduction in spending on operating activities by 40 per cent to US$15.5 million (A$21.6 million), with quarterly revenues up by 5 per cent to US$2 million.
The improvement in revenue was largely due to the US$1.9 million received in TEMCELL royalties from sales in Japan.
While the company recorded a loss before income tax of US$21.35 million for the March quarter, this is an improvement from the previous corresponding period, during which Mesoblast recorded a loss of US$26.5 million.
Highlights in its drug development centred around its lead Remestemcel-L product, which made progress in studies for COVID-19, inflammatory bowel disease, and steroid-refractory acute graft versus host disease (SR-aGvHD).
The company is currently preparing for an upcoming review from the US Food and Drug Administration (FDA) for its Biologics License Application (BLA) for the treatment of children with SR-aGvHD.
It has conducted a successful mock pre-approval inspection of its GMP manufacturing facility and will provide the new data to the FDA to address outstanding items in its BLA resubmission.
Meanwhile, the company is awaiting further guidance from the FDA on an approval pathway for Rexlemestrocel-L for treatment of chronic heart failure.
At the end of the period, the company had $76.8 million in cash, with the option to draw down on an additional $40 million from existing finance facilities, subject to the achievement of certain milestones.
Shares in Mesoblast were trading 1.32 per cent lower today at 97 cents each at 11:56 am AEST.