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Mesoblast (ASX:MSB) shares have fallen just shy of -3% heading into lunchtime trades, even as the company said it “believes” its stem cell products aren’t subject to U.S. tariffs.
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For some users on HotCopper, the word “belief” wasn’t quite certain enough.
Indeed, perhaps that ambiguous language was the catalyst that made some shareholders sell off Mesoblast, but the larger backdrop of a red Friday ought to be remembered – as well as its recent inclusion into the ASX200.
But for many other users, Mesoblast’s explanation that its goods are deemed of US origin and so not subject to tariffs was more than enough cause for relaxation.
Except, this is where the word “belief” could become important.
Mesoblast manufactures its flagship product remestemcel in Singapore, confirmed in a market announcement back in March of 2023.
While I am sure that forum users may accuse me of being a short seller – I hereby assure you as I write this, I am not – the share price dip could ultimately be one borne from the uncertainty of affairs, here.
While its facilities in Singapore ultimately manufacture remestemcel, given we’re talking stem cells, Mesoblast sees that because it takes source material from US donors, then it’s in the clear.
Or, at least, that’s what it “believes.”
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(Perhaps with a market cap of $2.31B and nowhere near that in revenues, short sellers are watching Mesoblast because they’re fulfilling the role they’re meant to.)
MSB last traded at $1.82/sh.
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