Pioneer in allogeneic cellular medicines for inflammatory diseases, Mesoblast [ASX:MSB] presented operational and financial results for the quarter ending 31 December 2022.
The biotech posted a 39.2% slide by the half-year FY2023, with revenue totalling US$3.6 million.
Net losses improved in the quarter by 14.9%, equating to US$41.4 million.
3.32 cent losses per share were also posted for the quarter.
MSB fell by 1.6% in share price not long after making the company made its announcement, only to rebound by more than 4% an hour later.
The past year has proved a challenge for the biotech’s stock, which has bumped down 12% over that time:
Source: tradingview.com
Mesoblast provides highlights for second quarter
Today the research biotech gave its results for the second quarter of fiscal 2023, revealing revenue had slipped 39.2% to US$3.6 million for the half year — $5.6 million in Aussie dollars.
The bulk of Mesoblast’s revenue came from royalties for TEMCELL HS in Japan, totalling US$1.9 million in the last quarter. On a constant currency basis, sales raked in US$2.1 million compared with US$2.3 million in 2021.
MSB also posted US$3.2 million in commercialisation revenue related to royalty income in the half year.
Net losses of US$41.4 million were not as bad as a year ago, down 14.9% in comparison, though they did contribute to 3.32 cents in losses per share.
Mesoblast’s operations incurred an expense of US$16.5 million for the second quarter, a 9% from the second quarter FY2022, and a 46% reduction (US$14.1 million) from the second quarter FY2021.
Research and development expenses were also reduced by US$2.5 million — 35% down to US$7.7 million. Manufacturing expenses were slightly higher due to product testing of remestemcel-L for the potential commercial launch of SR-aGVHD.
Mesoblast said future capital spending will be required for research and clinical development, with much of its pipeline still in ideas, development, and testing phases.
The company said:
‘We expect our research and development and management and administration expenses to remain relatively consistent over the next 12 months. Subject to us achieving successful regulatory approval, we expect an increase in our total expenses driven by an increase in our product manufacturing and selling, general and administrative expenses as we Table of Contents Page 46 move towards commercialization.’
By the end of the second quarter, MSB’s cash reserves were US$67.6 million, with potentially US$40 million more that could be taken from funding facilities if the company is to reach certain milestones in a timely manner.
Dr Silviu Itescu, Chief Executive of Mesoblast, commented:
‘There is an urgent need for a therapy that improves the dismal survival outcomes in children with steroid-refractory acute graft versus host disease (SR-aGVHD), a potentially life-threatening complication of an allogeneic bone marrow transplant for the treatment of blood cancers. With the resubmission of the BLA filing for remestemcel-L we are one step closer to bringing this important product candidate to the market.’
Mesoblast has been granted permission for rexlemestrocel-L to trial the treatment of chronic lower back pain, with patients to be enrolled by mid-2023.
Results from MSB’s Phase 3 chronic heart failure trial, DREAM-HF, were also published in the Journal of the American College of Cardiology today, highlighting rexlemestrocel-L’s potential to make a key difference in mortality, heart attack or stroke.
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