UPDATE: The share price of Mesoblast Ltd (ASX: MSB) has skyrocketed by 38% today, jumping from $1.79 to $2.47 in early afternoon trading. This surge comes as the clinical-stage biotechnology company released its June quarter update, igniting investor interest.
Mesoblast, valued at approximately $3 billion, has captivated the market with its news regarding gross revenue from its recently launched product, Ryoncil (remestemcel-L-rknd). This product is the first and only FDA-approved mesenchymal stromal cell (MSC) treatment in the United States for steroid-refractory acute graft-versus-host disease (SR-aGvHD) in children.
After becoming commercially available on 28 March, Ryoncil has already generated US$13.2 million in unaudited gross revenue from sales through the end of June. This impressive figure marks a significant milestone for the company as it continues to expand its market presence.
In addition to the Ryoncil sales, Mesoblast reported US$1.6 million in quarterly revenue from royalties on its TEMCELL product, sold in Japan. However, the company also disclosed a net operating cash spend of US$16.6 million for the quarter, leaving it with US$162 million in cash as of 30 June.
During the June quarter, the Mesoblast share price faced a decline of approximately 15% as the company worked to onboard over 25 transplant centres following the Ryoncil launch. CEO Silviu Itescu expressed optimism about the current quarter, stating that the company aims to complete onboarding across all 45 priority transplant centres, which account for around 80% of all US pediatric transplants.
Investor enthusiasm is further fueled by the expanding coverage for Ryoncil. Over 250 million US residents are now insured by commercial and government payers, with mandatory Medicaid coverage for Ryoncil effective since 1 July across all US states. This development is expected to enhance sales and accessibility for patients in need.
“We are pleased with the commercial launch activities of Ryoncil in the first quarter post-launch and look forward to updating on the current quarter’s progress now that mandatory state CMS coverage has become effective,” said CEO Silviu Itescu.
As Mesoblast navigates this pivotal moment, investors will be closely watching how the company capitalizes on its current momentum. The next quarter’s results could provide additional insights into the effectiveness of Ryoncil’s market integration and its overall impact on the company’s growth trajectory.
Stay tuned for further updates as Mesoblast continues to make waves in the biotechnology sector.
