Why the Mesoblast (ASX:MSB) share price is rising 5% today

A smiling woman looks at her computer laptop in her home with warm lights in the background feeling happy to see the Mesoblast share price rising

The Mesoblast Limited (ASX: MSB) share price is heading north today following a positive update regarding its remestemcel-L drug.

At the time of writing, the share price of the allogeneic cellular medicines company is up by 2.94% to $1.40.

However, in earlier trading, the Mesoblast share price reached $1.43, which is 5.1% above yesterday’s close of $1.36.

What did Mesoblast announce?

Investors are snapping up Mesoblast shares after the company provided a regulatory update on the appropriate potency assay on remestemcel-L.

According to the release, the company held discussions with US Food and Drug Administration’s Office of Tissues and Advanced Therapies (OTAT) in response to the received complete response letter (CRL).

As such, Mesoblast requested to explore the potency assay and chemistry, manufacturing and controls (CMC) items for remestemcel-L.

The OTAT advised that the company’s approach to addressing the outstanding CMC items is a reasonable critical quality attribute (CQA). OTAT also noted that the relevance of this activity to clinical outcomes should be established.

Mesoblast stated that it has generated substantial data that it believes meets the proposed in vitro immunomodulatory activity of remestemcel-L. This is demonstrated in its phase III trial in children with steroid-refractory acute graft versus host disease (SR-aGVHD).

The company will present its findings to the OTAT, and address other remaining CRL items as required, for the Biologics License Application resubmission.

What is remestemcel-L?

Mesoblast’s lead drug candidate remestemcel-L is a cellular therapy product. It consists of cultured, cryopreserved mesenchymal stem cells derived from the bone marrow of healthy donors.

Remestemcel-L is being developed to treat steroid-refractory acute graft versus host disease (SR-aGVHD). However, Mesoblast has also been experimenting with remestemcel-L to treat patients infected with COVID-19.

About the Mesoblast share price

Over the past 12 months, Mesoblast shares have plummeted in value, sinking almost 40%.

The Mesoblast share price fell to a 52-week low of $1.31 earlier this month.

At today’s price, Mesoblast has a market capitalisation of $908 million, with approximately 648 million shares on issue.

The post Why the Mesoblast (ASX:MSB) share price is rising 5% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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