Australia Markets open in 2 hrs 44 mins

Mesoblast share price rises after strong quarterly result

Kenneth Hall
EEG, cardiac monitor, medical equipment

The Mesoblast Limited (ASX: MSB) share price has already rocketed 4.83% in early trade after the company’s first quarter results update this morning.

Why is the Mesoblast share price moving?

Mesoblast reported its operational highlights and financial results for the first quarter ended 30 September 2019.

The Aussie medical group saw 36% growth on the prior corresponding period (pcp) in group revenues to US$15.0 million. Mesoblast’s TEMCELL revenues rocketed 85% higher on pcp in Japan in a boost for the company.

Mesoblast reported a 72% reduction in loss after tax compared to Q1 2019. This was driven by a 33% decrease in research and development expenditure as well as the increase in revenues.

The Mesoblast share price closed 0.56% higher at $1.80 per share yesterday but could climb higher in early trade.

What about operational highlights?

Mesoblast saw continued growth in its commercialisation revenues thanks largely to the Japanese market. The company’s acute Graft Versus Host Disease (aGVHD) market adoption in Japan was strong and Mesoblast is hoping for the same in the United States.

The Mesoblast share price will be one to watch today following the broadly positive quarterly update on a financial and operational front.

Mesoblast entered into an agreement with Lonza in October 2019 for commercial product manufacture. The Aussie company is looking to facilitate appropriate inventory build ahead of its planned remestemcel-L launch in the United States.

Mesoblast also entered into a strategic partnership with Grunenthal during the quarter. Mesoblast will receive US$150 million in upfront and milestone payments prior to the MPC-06-ID product launch.

The companies are working together to develop and commercialise the product to treat lower back pain due to a degenerative disc disease.

According to Mesoblast, cumulative milestone payments could exceed US$1 billion depending on the outcome of its Phase 3 studies and patient adoption.

The company has an upcoming FDA filing for its remestemcel-L for aGVHD. If approved, Mesoblast expects to launch the product next year.

The Mesoblast share price is up 49.21% higher in 2019 and has a market cap just over $1 billion.

The post Mesoblast share price rises after strong quarterly result appeared first on Motley Fool Australia.

If you're after more ASX dividend stocks in 2019 then check out these 3 earners below!

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

More reading

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019