Mesoblast (ASX:MSB) - Managing Director and CEO, Silviu Itescu (centre)
Managing Director and CEO, Silviu Itescu (centre)
Source: Mesoblast
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Mesoblast (MSB) has raised US$90 million (A$138 million) to manufacture its cell therapy treatment for COVID-19 patients with respiratory failure
  • Last month, the company found its treatment was 83 per cent effective against COVID-19 patients with acute respiratory distress syndrome (ARDS)
  • Mesoblast issued 43 million shares to existing and new institutional investors at a price of $3.20 per share
  • Majority of the funds will be used to scale-up manufacturing, while the remaining fund will be used for working capital and corporate purposes
  • Mesoblast is down 4.07 per cent on the market this morning, trading for $3.30 per share

Mesoblast (MSB) has raised US$90 million (A$138 million) to manufacture its cell therapy treatment, remestemcel-L treatment, for COVID-19 patients.

Last month, the company found its treatment was 83 per cent effective against COVID-19 patients with acute respiratory distress syndrome (ARDS).

The trial showed that 75 per cent of the COVID-19 patients had successfully come off ventilator support around 10 days after the treatment.

In contrast, one New York hospital network only saw a 12 per cent survival rate using the standard of care within the same period Mesoblast treated its patients.

Placement

Mesoblast issued 43 million shares to existing and new institutional investors at a price of $3.20 per share.

The majority of the funds will be used to scale-up manufacturing of remestemcel-L for the treatment of critically ill patients suffering from diseases caused by cytokine release syndromes associated with high mortality, particularly COVID-19.

The remaining funds will be used for working capital and general corporate purposes.

“We greatly appreciate the support shown by both our existing investors and new institutional investors, with demand for the placement far exceeding the funds raised,” Chief Executive Dr Silviu Itescu said.

“We look forward to updating the market as this important COVID-19 ARDS trial progresses and to its completion in the coming months,” he added.

Mesoblast is down 4.07 per cent on the market this morning, trading for $3.30 per share at 11:24 am AEST.

MSB by the numbers
More From The Market Online
Image of a woman holding a bottle of hemp oil

Little Green Pharma jumps into distribution with acquisition

Little Green Pharma is aiming to make the strategic acquisition of HH (Australia) Pty Ltd to…
Image of cancer cells

Radiopharm approved to start Lu-RAD202 safety trials, door open for in-human studies

Radiopharm Theranostics has received ethics approval for its trial into Lu-RAD202, a novel treatment for these…
Close up of a nasal spray

LTR Pharma pairs with Men’s Health Downunder for supply of erectile dysfunction spray

LTR Pharma Ltd has signed an agreement with Men's Health Downunder to facilitate supply of its…
Immune system concept ai gen

Immutep dips as safety test for flagship drug IMP761 shows no adverse effects

Immutep has reported a small-scale conceptual safety test among 5 patients using flagship drug IMP761 has…