This morning, the Mesoblast limited (ASX: MSB) share price jumped 3.14% to $5.25 after the company received a positive recommendation from the Data Safety Monitoring Board (DSMB) to continue its phase 3 trial of remestemcel-L in patients with acute COVID-19. The positive news, however, was not sufficient to sustain the Mesoblast share price amid wider share market falls with the company now trading at $5.04 at the time of writing.
What moved the Mesoblast share price?
The Mesoblast share price edged higher today when the company announced that the independent DSMB has recommended the continuation of the phase 3 trial of remestemcel-L in patients with moderate to severe acute respiratory distress syndrome (ARDS) due to COVID-19 infection. This follows the completion of the trial’s first interim analysis.
Previously, remestemcel-L was given to 30% of randomly selected trial patients with a placebo given to other patients. Both groups also received maximal care. According to the announcement, the primary end point was mortality within 30 days.
Next, under the phase 3 trial, up to 300 patients will be trialled with one out of two given remestencel-L by injection and the other receiving a placebo. Both the patient and the medical staff will be unaware if the placebo or the investigative treatment is being administered. The primary end point is mortality within 30 days and the second endpoint is days alive off ventilatory support within 60 days. Recruitment for the trial is expected to be finalised in quarter four of the 2020 calendar year.
Mesoblast Chief Medical Officer, Dr Fred Grossman, commented on the recommendation, stating; “We are very pleased with the recommendation by the DSMB. This important trial seeks to confirm whether remestemcel-L improves survival in ventilated COVID-19 patients with moderate to severe ARDS, where death rates remain high despite best existing treatments.”
Remestemcel-L is an investigative therapy that uses stem cells from the bone marrow of an unrelated donor to treat inflammation in the human body.
More about Mesoblast
Mesoblast develops cellular medications and has a broad portfolio of commercial products and late stage product candidates. It is listed on both the ASX and the Nasdaq.
Early in September, Mesoblast announced that it had received ethics approval to trial its investigative treatment, remestemcel-L, on COVID-19 patients in Australia.
In August 2020, Mesoblast announced it had revenue of $32.2 million in the 2020 financial year, an increase of $16.7 million compared to the 2019 financial year. It had a 13% reduction in loss after tax compared to the 2019 financial year, posting a loss of $77.9 million. Mesoblast had $129.3 million cash on hand at 30 June 2020.
The Mesobast share price is up nearly 400% since its 52 week low of $1.02, it has returned 145.85% since the beginning of the year. The Mesoblast share price is up 252.45% since this time last year.
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More reading
- Why Brainchip, De Grey, Mesoblast, & SKYCITY shares are pushing higher
- The Mesoblast share price rocketed 40% higher in August: Is it too late to invest?
- Mesoblast share price flat on Australian phase 3 COVID-19 trial news
- These were the best performing ASX 200 shares in August
- Up 38% in August, is the Mesoblast share price a buy?
Motley Fool contributor Chris Chitty 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.
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