Mesoblast stock gains attention as Ryoncil revenue rises 44 percent

Mesoblast reported stronger commercial momentum for Ryoncil in its fiscal first quarter ended September 30, while sharply reducing operating cash use. The company said in a company release carried by GlobeNewswire that Ryoncil net revenue reached US$28 million for the three months to September 30, up 44 percent from the prior-year period. The preliminary figures remain subject to customary closing and audit procedures.

Commercial Momentum Strengthens

September produced the highest monthly number of new Ryoncil patient starts, according to Mesoblast. The company attributed the preceding July and August softness to expected summer-recess treatment scheduling. Ryoncil is approved in the United States for pediatric patients aged two months and older with steroid-refractory acute graft-versus-host disease.

Mesoblast is also enrolling patients in a registration trial for adult use of Ryoncil. Up to 40 US sites are expected to be activated this year, covering about 60 percent of the estimated 8,500 annual US adult allogeneic bone-marrow-transplant population.

Cash Use And Pipeline Milestones

Net operating cash spend fell 86 percent year over year to US$2.1 million from US$14.9 million. Cash was US$99 million at September 30. The improvement gives investors a stronger near-term operating backdrop, although product adoption, manufacturing scale-up and clinical execution remain important variables.

Mesoblast completed treatment of all patients in its expanded 350-patient Phase 3 trial of rexlemestrocel-L for chronic inflammatory lower-back pain caused by degenerative disc disease. The primary endpoint measures durable pain reduction after 12 months and is expected to read out next year.

The company also said the FDA confirmed that a planned Biologics License Application may proceed for rexlemestrocel-L in patients with end-stage heart failure supported by a left ventricular assist device and suffering life-threatening gastrointestinal bleeding. Formal meeting minutes were expected shortly, according to the release.

The real-time quote of Mesoblast stock showed Mesoblast stock trading at 1.38 euros on Lang & Schwarz at 18:41 CET on Friday, October 30.

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