Thursday, August 31, 2017 1:07:42 PM
Sean O'Neill | August 29, 2017 | More on: MSB
The Mesoblast limited (ASX: MSB) share price plunged 10% after the company returned to trade this morning:
Mesoblast has been in a trading halt since Friday, raising capital from institutional investors in a 1-for-12 issue. Management announced this morning that the company had completed the $38 million capital raising from institutional investors, although it was not clear how much was contributed by external investors and how much was carried by the underwriter, Bell Potter. Retail investors who hold Mesoblast shares as of 7pm this evening will be invited to participate in the $12 million retail capital raising under the same terms as institutions.
The funds will go towards the ongoing costs of the company’s research, with several treatments currently in Phase 3 trials. At least one trial is expected to complete in the second half of 2018. If successful, the next step could be to achieve FDA registration and commence sales.
Is Mesoblast a buy?
In my opinion, the current price of $1.45 – a $700 million market capitalisation – is obviously the wrong price for Mesoblast. In simple terms either its trials will not succeed, in which case the company is hugely overvalued, or they will succeed, in which case the company is likely considerably undervalued. The trouble for ordinary shareholders is that it is very difficult to know which is the case before the results. Additionally, even if successful, the company has a long road ahead even after registration as it will have to actually sell its product, which requires investing in sales infrastructure and so on.
In my opinion, any purchase of Mesoblast today should be considered high risk and speculative, and kept as only a small part of a diversified portfolio.
Recent MESO News
- FDA Commentary Sends Biotech Soaring During Premarket Hours • AllPennyStocks.com • 03/26/2024 01:25:00 PM
- United States Food & Drug Administration (FDA) Notifies Mesoblast that Available Clinical Data from Phase 3 Trial Appear Sufficient to Support BLA Submission for Remestemcel-L in Children with Steroid-Refractory Acute Graft Versus Host Disease (SR-aGVHD) • GlobeNewswire Inc. • 03/26/2024 02:34:20 AM
- Mesoblast Successfully Completes Placement and Accelerated Entitlement Offer • GlobeNewswire Inc. • 03/13/2024 11:30:47 PM
- United States Food & Drug Administration (FDA) Supports Accelerated Approval Pathway for Rexlemestrocel-L in End-Stage Heart Failure Patients with a Left Ventricular Assist Device (LVAD) • GlobeNewswire Inc. • 03/10/2024 11:54:12 PM
- Mesoblast Reports Financial Results and Operational Update for Half-Year Ended December 31, 2023 • GlobeNewswire Inc. • 02/28/2024 10:57:09 PM
- Mesoblast Financial Results and Corporate Update Webcast • GlobeNewswire Inc. • 02/26/2024 12:00:00 PM
- United States Food & Drug Administration (FDA) Grants Mesoblast Orphan-Drug Designation for Revascor® (Rexlemestrocel-L) in Children With Congenital Heart Disease • GlobeNewswire Inc. • 02/15/2024 12:46:40 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/01/2024 02:34:30 AM
- Appendix 4C Quarterly Activity Report for Quarter Ended December 31, 2023 • GlobeNewswire Inc. • 01/31/2024 02:13:34 AM
- Mesoblast Gets FDA's Special Pediatric Designation for Revascor Heart Treatment • Dow Jones News • 01/19/2024 12:28:00 AM
- United States Food & Drug Administration (FDA) Grants Mesoblast Rare Pediatric Disease Designation for Revascor® (Rexlemestrocel-L) in Children With Congenital Heart Disease • GlobeNewswire Inc. • 01/18/2024 11:36:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/16/2024 11:33:54 AM
- Form F-6 POS - Post-effective amendments for immediately effective filing • Edgar (US Regulatory) • 01/05/2024 02:57:09 AM
- Form F-6 POS - Post-effective amendments for immediately effective filing • Edgar (US Regulatory) • 12/22/2023 10:13:02 PM
- Mesoblast Files for Orphan Drug and Pediatric Rare Disease Designations for Rexlemestrocel-L as Treatment for Severe Congenital Heart Disease • GlobeNewswire Inc. • 11/26/2023 11:56:21 PM
- Biotech Shares Soar Following Major Announcement • AllPennyStocks.com • 11/22/2023 06:35:00 PM
- Biotech Shares Soar Following Major Announcement • AllPennyStocks.com • 11/22/2023 06:35:00 PM
- Mesoblast Partners With Blood and Marrow Transplant Clinical Trials Network (BMT CTN) on Pivotal Trial in Adults With SR-aGVHD • GlobeNewswire Inc. • 11/21/2023 11:32:27 PM
- Appendix 4C Quarterly Activity Report for Quarter Ended September 30, 2023 • GlobeNewswire Inc. • 10/31/2023 12:04:17 AM
- Jane Bell AM Appointed Chair of Mesoblast Audit and Risk Committee • GlobeNewswire Inc. • 09/26/2023 10:18:49 AM
- Key Outcomes From FDA Type A Meeting and Mesoblast Next Steps to Achieve RYONCIL Approval • GlobeNewswire Inc. • 09/21/2023 07:30:42 AM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 09/06/2023 10:42:49 AM
- Mesoblast Reports Financial Results and Operational Update for Fiscal Year Ended June 30, 2023 • GlobeNewswire Inc. • 08/30/2023 11:07:02 PM
- Mesoblast Financial Results and Corporate Update Webcast • GlobeNewswire Inc. • 08/29/2023 11:00:00 AM
- Mesoblast ADSs Plunge Premarket on Latest FDA Rejection • Dow Jones News • 08/04/2023 01:03:00 PM
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