Motley Fool Australia Share Market News Mesoblasts share price gained another 16% in July. Heres why.
Bernd Struben | August 7, 2020 2:07pm | More on: MSB ASX 200
Biotechnology company Mesoblast limiteds (ASX: MSB) share price added to the strong gains it notched up from April through June, closing up another 16.3% in July. An impressive performance considering the S&P/ASX 200 Index (ASX: XJO) only gained 0.5% in July.
Mesoblasts share price was hammered badly in the wider market sell-off during early COVID-19 lockdown measures, tumbling a gut-wrenching 60% from 23 February through its low on 24 March.
Since its 23 March low, Mesoblasts share price has come roaring back, up 241% by 31 July.
Year-to-date Mesoblasts share price is up 115%, giving the company a market cap of $2.6 billion.
Mesoblast is a regenerative medicine company developing treatments for inflammatory ailments, cardiovascular disease and back pain.
Mesoblast uses its proprietary technology platform to develop and commercialise innovative allogeneic cellular medicines to treat complex diseases. The company targets diseases that are resistant to a conventional standard of care and where inflammation plays a central role.
Mesoblast has four phase-3 products nearing registration:
Mesoblasts share price benefited from the companys involvement in treating COVID-19.
In the first week of July, Mesoblast released a promising update on its allogeneic mesenchymal stem cell (MSC) product candidate, remestemcel-L.
The company reported an expanded access protocol (EAP) had been initiated in the United States for the compassionate use of remestemcel-L. Patients who tested positive for the virus aged between 2 months and 17 years with pre-existing cardiovascular issues could access remestemcel-L within 5 days of referral under the EAP.
Mesoblasts financial performance has also been strong. The company recorded a 113% increase in overall revenues for the first 9 months of the 2020 financial year, compared to the first 9 month of the 2019 financial year. Mesoblasts balance sheet was also fortified by a $138 million fund raising in May. The companys next earning report is scheduled to be released on 27 August.
Mesoblasts share price has continued to run higher, up 16% so far in August.
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Motley Fool contributor Bernd Struben 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.
Bernd Struben earned his economics degree in the US. Following several years writing about the tourism industry in the Caribbean, he moved to The Netherlands to cover the EUs booming commercial real estate markets. He moved to Australia in 2010, where he transitioned to analysing the Aussie equity markets. He employs a combination of macro economics and company specific data to gauge what he believes are tomorrows best investments. In his free time, youre likely to find Bernd at the beach or dabbling away on a new work of science fiction.