Why did the Mesoblast share price rocket 54% in July?

drug capsule opening up to reveal dollar signs signifying rising asx share price

drug capsule opening up to reveal dollar signs signifying rising asx share price

The Mesoblast Limited (ASX: MSB) share price skyrocketed in July.

Shares in the clinical-stage biotechnology company closed 30 June trading at 61 cents per share. On 29 July, the last trading day of the month, Mesoblast closed at 94 cents per share, up a whopping 54.1% for the month.

For some context, the All Ordinaries Index (ASX: XAO) gained 6.3% in July.

At its closing price in July, the company had market cap of $611 million.

Shares have slipped 4.8% so far in August to 89 cents per share.

What lifted the ASX biotech share in July?

The Mesoblast share price looks to have enjoyed some bargain hunting early in July after shares fell 38% in June, far outpacing the 10% loss posted by the All Ordinaries.

Aside from the company’s quarterly activities report released on 29 July, which saw shares close the day down 2.1%, the only price-sensitive news out from Mesoblast was released on 19 July.

The update on its rexlemestrocel-L product candidate saw the Mesoblast share price close the day up 8.2%.

As The Motley Fool reported on the day:

Rexlemestrocel-L delivered an improvement in left ventricular ejection fraction (LVEF) at 12 months after a single intervention in the 565-patient randomised controlled trial in New York Heart Association (NYHA) class II/III chronic heart failure (CHF) with reduced ejection fraction (HFrEF).

Among the highlights of the clinical trial was a 68% decrease in the rate of recurrent hospitalisations from non-fatal heart attacks or strokes compared with patients in control groups.

Mesoblast shares likely received some sustained tailwinds from the positive trial outcome.

The company reported it will meet with the US Food and Drug Administration (FDA) under the regenerative medicine advanced therapy framework to work on regulatory approval in the world’s top economy.

Mesoblast share price snapshot

Despite the strong run higher in July, the Mesoblast share price remains down 55% over the past 12 months. That compares to a full year loss of 8% posted by the All Ordinaries.

The post Why did the Mesoblast share price rocket 54% in July? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Mesoblast Limited right now?

Before you consider Mesoblast Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Mesoblast Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Motley Fool contributor Bernd Struben 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/W0eU5Rn

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s