It is fair to say that the Zip Co Ltd (ASX: Z1P) share price had a year to forget in 2021.

Over the 12 months, the buy now pay later (BNPL) provider’s shares lost 18.1% of their value.

Though, this is only telling half the story. At one stage in February last year, the Zip share price was up as much as 175% year to date to a record high of $14.53.

From top to bottom, the company’s shares shed over 70% of their value.

What happened to the Zip share price?

Investors were selling down the company’s shares last year after investor sentiment in the BNPL industry waned.

This was driven by increasing competition, which led to higher than expected investments in sales and marketing (and therefore larger losses), and concerns over regulatory pressure in the United States.

In respect to increased competition, there were a number of industry events that caused alarm for ASX BNPL shareholders.

For example, last year PayPal removed merchant fees for its PayPal Pay in 4 product, reports claimed that tech behemoth Apple is interested in offering its own BNPL service, and Mastercard launched its Pay & Split solution.

Will its shares bounce back in 2022?

The team at Morgans remains positive on the Zip share price. Last week the broker retained its add rating but cut the price target on its shares by 12% to $7.54. This implies potential upside of 88% over the next 12 months.

The broker commented: “The [BNPL] sector is suddenly unloved by investors, so solid 1H22 results are required to change sentiment. We expect strong revenue growth for APT and Z1P (~100% on pcp), but we still expect both stocks to report 1H22 NPAT losses.”

Though, it has also warned that Zip is one of several shares that “earnings visibility remains poor for” heading into reporting season.

The post The Zip (ASX:Z1P) share price had a year to forget in 2021 appeared first on The Motley Fool Australia.

More reading

• The Zip (ASX:Z1P) share price has hit 3 52-week lows in the last month. What now?
• These are the 10 most shorted ASX shares
• These were the worst performing ASX 200 shares last week
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• Own Zip (ASX:Z1P) shares? Top broker forecasts earnings for next 3 years

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. 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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The Lithium Power International Ltd (ASX: LPI) share price hit its 52-week high of 61 cents shortly after opening this morning on the back of a company update.

The Lithium Power share price has since settled at 59.5 cents, up 2.59% at the time of writing.

The price movement comes as the miner announced plans to demerge from its Western Australian lithium assets.

Let’s take a closer look…

Lithium demerger

Lithium Power has announced it will spin-out both its Greenbushes and Pilgangoora hard rock lithium assets in WA.

Instead, these interests will be held by DemergeCo, a wholly-owned subsidiary of Lithium Power, which will now seek to be listed on the ASX.

Lithium Power has announced its shareholders will receive DemergeCo shares on a pro-rata basis via a capital reduction and in-specie distribution, subject to both shareholder and regulatory approvals.

The company now intends to focus on its Maricunga Lithium Brine Project in northern Chile.

Just last week, Lithium Power reported positive advancements and surveying of its WA projects.

The sites are located immediately along strike from the major Talison lithium mine and adjacent to the assets owned by Pilbara Minerals Ltd (ASX: PLS).

What does the company say?

Lithium Power reasons the split will unlock the “strategic value” of the assets and leave the company to focus on developing its flagship site within Chile’s so-called ‘Lithium Triangle’.

The board believes the decision will compensate existing shareholders, in that it will give “the opportunity to create long term value via a new ASX-listed company” and will allow a “direct level of participation” in these assets.

Lithium Power CEO Cristobal Garcia-Huidobro said:

LPI has a number of highly prospective assets located in WA that are at an exciting stage of exploration.

These assets deserve their own time, attention and resources, and LPI’s Board believes that it is the best outcome for LPI shareholders to create a dedicated, WA-focused company that has the technical, human and financial resources to advance these exciting assets.

Lithium Power share price snapshot

The Lithium Power share price has skyrocketed in the last 12 months, up 143%.

The company hit its previous 52-week-high of 60 cents a share on Monday, before breaking through the 60 cents barrier in reaching its new high this morning.

The company has a market capitalisation of $208 million.

The post What’s driving the Lithium Power (ASX: LPI) share price up today? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• Here’s why the Nickel Mines (ASX:NIC) share price is surging 7% today
• Why has the Whitehaven Coal (ASX:WHC) share price rallied 20% in a month?
• Is Bitcoin making share prices more volatile?
• Why Domino’s, Fortescue, Medibank, and Metcash shares are falling

Motley Fool contributor Alice de Bruin 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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The S&P/ASX 200 Index (ASX: XJO) is having a pleasant time in the sun so far this Wednesday. At the time of writing, the ASX 200 is up a robust 0.68% at 7,440 points.

So let’s dig deeper and take a look at the ASX shares currently topping the ASX’s share trading volumes, according to investing.com.

3 most traded ASX 200 shares by volume on Wednesday

Telstra Corporaiton Ltd (ASX: TLS)

ASX 200 telco Telstra is first up this Wednesday. This telecommunications and internet giant has had a hefty 13.81 million of its shares trade hands so far today. However, there hasn’t been much in the way of news or announcements out of this company today.

Therefore, we can probably put this volume down to the movements of the Telstra share price itself. At the time of writing, Telstra shares are up a very pleasing 2.2% to $4.19 after going as high as $4.20 earlier this afternoon. This is the likely reason why so many Telstra shares have been traded today.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Mienrals is next up today. This ASX 200 lithium producer has had a sizeable 18.99 million if its shares change hands as it presently stands. Again, there isn’t much going on with Pilbara today in an official capacity. However, we have also seen a decisive move with the Pilbara share price.

At present, Pilbara shares are up a happy 1.7% so far at $3.58. However, this company touched a new all-time high of $3.65 a share earlier today. It’s this strong push upwards that is the likely smoking gun for this high ASX 200 volume this Wednesday.

Liontown Resources Limited (ASX: LTR)

Last but certainly not least in terms of trading volume, we have Liontown Resources. This ASX 200 lithium explorer has watched 20.23 million of its shares find a new home so far today. We don’t have to look too far for this one though. Liontown has had a fantastic day of trading this Wednesday.

The shares are presently up a healthy 6.13% at $1.645 each after hitting $1.75 (up 13%) earlier this morning. As my Fool colleague James discussed at the time, this seems to be related to the announcement this morning that Liontown has signed a major agreement with leading battery manufacturer LG Energy Solution.

The post Here are the 3 most heavily traded ASX 200 shares this Wednesday appeared first on The Motley Fool Australia.

More reading

• Pilbara Minerals (ASX:PLS) share price hits record high as Citi says ‘too early to sell’
• The best and worst ASX sectors of 2021. Why this year could be different
• Here are the 5 best performing ASX ETFs of 2021
• Why Afterpay, Appen, Liontown, and Nickel Mines shares are surging higher
• Is the Telstra (ASX:TLS) dividend going to grow in 2022?

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. 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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The Nickel Mines Ltd (ASX: NIC) share price is set to finish Wednesday’s trading session on a high note. This comes as the low-cost nickel producer is enjoying multi-year highs on the spot price of nickel.

At the time of writing, the company’s shares are swapping hands for $1.555, up 6.87%. It’s worth noting that earlier in the morning, its shares rose to a record high of $1.565.

Nickel Mines shares continue to impress

The Nickel Mines share price is surging today following positive investor sentiment in the electric vehicle (EV) battery sector.

Nickel is a key component in lithium-ion batteries, which is used in generating power for electric vehicles. Nickel is able to produce a lot more energy into batteries than using cobalt. The latter is considered a more expensive metal and has fewer purposes across industries.

On the back of rising interest in the sector, the price of nickel has accelerated to US$21.04 per kilo. The crucial metal has risen close to 22.6% since this time last year.

Last month, the company announced it signed a conditional share purchase agreement with Bolt Metals to acquire the Tablasufa Nickel Project.

The potential US$8.5 million purchase would represent another opportunity for Nickel Mines to expand its nickel portfolio.

Nickel Mines managing director, Justin Werner commented:

Located on the coast with a number of potential jetty locations already identified through previous bathymetry studies, it provides excellent potential logistics for the low-cost movement of ore and equipment in the future.

Through the acquisition of Tablasufa, Nickel Mines will further grow its presence in the emerging nickel province of West Papua. The province has historically undergone significant exploration by many of the majors and remains highly prospective.

Nickel Mines share price snapshot

Over the last 12 months, the Nickel Mines share price has accelerated by 25%, with year-to-date up 8%. The company’s shares slumped in early October to 88.5 cents before zooming to an all-time high of $1.565 today.

Based on today’s price, Nickel Mines commands a market capitalisation of roughly $3.89 billion, with approximately 2.52 billion shares outstanding.

The post Here’s why the Nickel Mines (ASX:NIC) share price is surging 7% today appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Appen, Liontown, and Nickel Mines shares are surging higher
• ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded
• 2 highly-recommended ASX shares to buy
• 6 ASX shares involved with green metals

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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The Whitehaven Coal Ltd (ASX: WHC) share price has rocketed in the past month.

Shares in the coal miner have gained around 20% in that time although, in afternoon trade today, Whitehaven shares are down 0.53%, currently trading at $2.86 apiece.

Let’s take a look at what may be behind the movement in the company’s share price lately…

What’s impacting Whitehaven Coal

The Whitehaven Coal share price has risen in the past month despite no price sensitive news from the company. However, rising demand for coal and elevated prices may have impacted investor confidence.

Whitehaven is one of the most significant coal players in Australia, with exploration at four mines in NSW and two development assets in Queensland.

Likely driving the share price hike over the past month was news the world’s biggest thermal coal exporter, Indonesia, had banned coal exports.

Rueters reported the south-east Asian country had imposed the ban due to concerns for its own power demand.

Investors likely see the ban as providing more opportunities for Whitehaven Coal and other competitors to export the product while also driving up the price of coal.

Indeed, the coal price has increased by 20% since market close on 10 December and is now trading at US$197 per tonne.

Also spurring the Whitehaven Coal share price may be positive broker recommendations. Six brokers have issued a buy rating on the miner.

As my Foolish colleague Tristan reported two days ago, Citi has placed a $3.20 price target on Whitehaven Coal. That’s around 10% more than the current share price at the time of writing.

In the last update from the company in October, Whitehaven Coal CEO Paul Flynn said rising thermal coal prices would also lead to “significant cash generation” in the coming months.

Share price snap shot

The Whitehaven Coal share price gained 80% in the past year. That’s far more robust the benchmark S&P/ASX 200 Index‘s (ASX: XJO) return of around 12% for the same period.

Shares in Whitehaven are up 4% in the past week.

The company has a market capitalisation of nearly $3 billion based on the current share price.

The post Why has the Whitehaven Coal (ASX:WHC) share price rallied 20% in a month? appeared first on The Motley Fool Australia.

More reading

• 2 highly-recommended ASX shares to buy
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• Why Brainchip, Pilbara Minerals, Straker, and Whitehaven Coal shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Pilbara Minerals hits record high, energy shares rise
• Why the Whitehaven Coal (ASX:WHC) share price is jumping 9% today

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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The rising popularity of Bitcoin is posing a threat to financial markets and ASX investors should be alive to this risk as well.

An analysis undertaken by the International Monetary Fund (IMF) found a high correlation between cryptocurrencies and major share indices.

This means that cryptos, such as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), moved in tandem with share markets. This has implications for the ASX on a number of fronts.

The connection between Bitcoin and shares

“Crypto assets are no longer on the fringe of the financial system,” said the IMF in its blog post.

“Amid greater adoption, the correlation of crypto assets with traditional holdings like stocks has increased significantly, which limits their perceived risk diversification benefits and raises the risk of contagion across financial markets.”

The market value of cryptos surged to around US$3 trillion in November last year from $620 million in 2017.

Why Bitcoin is more correlated now

The connection between the digital asset class and shares didn’t quite exist till the outbreak of the COVID-19 pandemic in early 2020.

Pre-COVID, cryptos and shares moved independently. But the flood of money unleashed by central banks around the world changed that, according to the IMF.

Why ASX investors should care is because of the potential spill-over effects. For instance, if the price of Bitcoin crashes, it could trigger a sharp sell-off in global shares.

How cryptos can cause a share market crash

This isn’t as farfetched as you might think. The IMF calculated that around one-sixth of the volatility on the S&P 500 (INDEXSP: .INX) is caused by the volatility of Bitcoin.

“As such, a sharp decline in Bitcoin prices can increase investor risk aversion and lead to a fall in investment in stock markets,” added the IMF.

“Spillovers in the reverse direction—that is, from the S&P 500 to Bitcoin—are on average of a similar magnitude, suggesting that sentiment in one market is transmitted to the other in a nontrivial way.”

No safe haven for Bitcoin investors

The other follow-on effect for ASX investors to note is that Bitcoin doesn’t make a good safe haven asset. There has been plenty of talk about how Bitcoin could replace gold.

But gold has a much weaker correlation to shares. History has repeatedly shown that gold outperforms during a financial crisis, such as the GFC. As it turns out, Bitcoin could actually be a source of a financial crisis.

Another point to note is that it may only be a matter of time before global regulations are imposed on cryptos.

Foolish takeaway

If the IMF’s analysis is right, it is unlikely that governments would allow cryptos to trade without the same rules that apply to other assets in the financial system.

What’s also interesting is that the IMF article doesn’t talk about what happens when central banks withdraw stimulus.

If the sharp increase in loose monetary conditions drove an increase in correlation between crypto and shares, will the reverse happen when monetary conditions tighten as they surely will?

The post Is Bitcoin making share prices more volatile? appeared first on The Motley Fool Australia.

More reading

• Bitcoin, Ethereum, and Dogecoin surge higher as crypto markets recover
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• Forget Bitcoin! These were the 5 crypto assets you wish you’d held in 2021
• Bitcoin and Ethereum are crashing: Is now the time to invest?
• The Bitcoin (CRYPTO:BTC) price has tumbled 10% since the start of 2022. Is it a buy?

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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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The S&P/ASX 200 Index (ASX: XJO) is back on form on Wednesday. In afternoon trade, the benchmark index is up 0.65% to 7,438.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is down 4.5% to $107.06. This appears to have been driven by an update from its US parent overnight. According to CNBC, the pizza giant warned that it is expecting “unprecedented” food cost increases in 2022. Domino’s US is forecasting an 8% to 10% rise in its food basket costs. This is three to four times the food inflation experienced in a typical year.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 1.5% to $20.85. Investors have been selling the mining giant’s shares following the release of a broker note out of Citi. According to the note, the broker has downgraded the company’s shares to a sell rating with a $17.20 price target. Citi made the move largely on valuation grounds.

Medibank Private Ltd (ASX: MPL)

The Medibank share price is down 2% to $3.48. This decline could have been driven by calls for the private health insurer to give more of its COVID savings back to members. The Private Hospitals Association chief executive, Michael Roff, has questioned the transparency of how health funds returned COVID-related savings. He has called for formal government monitoring of health fund balance sheets.

Metcash Limited (ASX: MTS)

The Metcash share price is down 4% to $4.09. This is despite there being no news out of the wholesale distributor. However, investors may be concerned that Metcash could be struggling from current supply chain issues which have left many supermarket shelves bare.

The post Why Domino’s, Fortescue, Medibank, and Metcash shares are falling appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded
• Why this top broker says the Fortescue (ASX:FMG) share price is overinflated
• 3 fantastic ASX growth shares rated as buys
• Medibank (ASX:MPL) share price shrugs off further questions over profit paybacks

Motley Fool contributor James Mickleboro 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 recommended Dominos Pizza Enterprises Limited. 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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The Bubs Australia Ltd (ASX: BUB) share price faced a difficult 12 months amid COVID-led channel disruptions. This caused volatility across the sector as investor confidence continued to weigh down the company’s shares.

At the time of writing, the infant formula company’s shares were edging 1.05% into the green at 48 cents apiece. It’s a sharp contrast from when Bubs shares were trading around the $1.40 mark before the pandemic began.

How is Bubs performing to date?

In its annual general meeting presentation released on 30 November, Bubs highlighted a turnaround to accelerated growth.

Responding to rapidly changing market dynamics, Bubs quickly adapted and returned the business to strong revenue margins in Q1 FY22.

As such, the first three months of the new financial year brought in revenues of $18.5 million. This represented a 45% increase on the previous quarter and a 96% lift on the prior corresponding period.

Bubs attributed the record sales volume to its growing brand awareness and market expansion. Strategic focus was placed on providing resilience, diversification of its customer base, and efficiencies across the entire business.

What’s ahead Bubs shares?

As my Foolish colleague Tristan pointed out late last month, Bubs has received a “buy” rating from multinational investment bank Citi.

Its team of analysts put a 12-month price target for the infant formula company at 58 cents per share. This implies an upside of around 22% based on the current Bubs share price.

The broker noted the robust recovery with Bubs’ operational action plan currently ahead of schedule. Key priorities include specialty dairy focus, margin improvement, daigou 2.0, and rebalancing inventory levels.

Bubs share price summary

It’s been a challenging year for Bubs shareholders, with the company’s shares falling around 15% over the past 12 months.

Since hitting a low of 31.5 cents in May, the company’s shares have continued their rollercoaster ride.

Based on valuation grounds, Bubs commands a market capitalisation of around $294 million.

The post Can the Bubs (ASX:BUB) share price bounce back in 2022? appeared first on The Motley Fool Australia.

More reading

• Are these 2 impressive ASX shares buys for 2022?

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 recommended BUBS AUST FPO. 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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Shares in diversified mining company South32 Ltd (ASX: S32) have nudged past 52-week highs today after pushing less than 2% higher on Wednesday.

South32 shares are now changing hands at $4.12 apiece after rallying as high as $4.19 and as low as $4.11 throughout the session.

Another record high for South32

It was a formidable year in 2021 for South32, with investors realising a 62% gain after shares jumped from a low of $2.78 back in August.

Since then, the South32 share price has been on an upward trajectory and shows no signs of slowing in today’s session.

Investors bought in at the lows following the release of its FY21 results which were a solid outcome for the company. South32 grew revenue 4% year on year to US$6.3 billion whereas EBITDA expanded by 32% to US$1.56 billion.

Much of the growth was underscored by corresponding record production throughout its portfolio constituents from projects like Australia Manganese, Worsley Alumina and also Brazil Alumina.

Aside from that, South32’s recent equity stake in the Sierra Gorda copper mine in Chile has given investors and brokers alike another boost of confidence.

For instance, Goldman Sachs reckons that South32 is a worthy aluminium play over the medium to long-term. The broker notes that South32 is “seeing positive sign posts on China production caps with greater focus on environmental issues, positively impacting price”.

As such, it estimates a free cash flow yield of around 16-18% in FY22 and FY23 for South 32 – over 20% at spot when factoring in the economics of this forecast, and values the company at $4.40 per share.

Macquarie is also constructive on South32, rating it as a buy on a $5.20 per share valuation. The investment bank also likes South32’s exposure to the mine in Chile in terms of free cash flow and forecasts a fully-franked dividend yield of 6% for investors to sink their teeth into in FY22.

Aside from these points, several of South32’s underlying commodities are well within another upswing and are showing strengths once again.

For instance, the price of aluminium is surging back towards 10-year highs at US$2,960/tonne, whereas zinc is now trading near the same record levels at US$3,607/tonne. Each of the metals has gained 46% and 30% in the past year, respectively.

Given the strengths in South32’s operations and underlying commodity markets, the picture starts to form as to what might be underpinning the South32 share price today.

South32 share price snapshot

In the last 12 months, the South32 share price has climbed more than 57% after rallying another 8% in the past month.

Shares have rallied this year to date as well and now sit 3% in the green, building on momentum earned in 2021.

Each of these returns is well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s return in the last year.

The post Why is the South32 (ASX:S32) share price hitting all-time highs today? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy today
• Why the South32 (ASX:S32) share price jumped 62% in 2021
• ASX 200 (ASX:XJO) midday update: Afterpay sinks again, BHP and Rio rise
• Why the South32 (ASX:S32) share price is pushing higher again today

The author 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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The Mesoblast Limited (ASX: MSB) share price is in the green on Wednesday.

The stock’s boost has come the same day the regenerative medicine company released the results of a 36-month follow-up on a phase 3 trial. Within the trial, patients with chronic low back pain were treated with rexlemestrocel-L.

At the time of writing, the Mesoblast share price is $1.34, 1.9% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.71%.

Let’s take a closer look at the non-price sensitive news released by the biotech company this morning.

Mesoblast gains amid news of another phase 3 trial

The Mesoblast share price is taking off today as its CEO, Dr Silviu Itescu prepares to present the results of a 3-arm trial at a showcase this week.

The trial found a single intra-discal injection of the company’s allogeneic cell therapy rexlemestrocel-L, along with a hyaluronic acid carrier, may help reduce pain from chronic lower back pain associated with degenerative disc disease for up to 36 months.

According to the company, there is an unmet need for safe, effective, and lasting opioid-sparing treatment for the condition.

So far, it has noted the durability of pain reduction from rexlemestrocel-L was greatest in those who have had chronic lower back pain for less than 68 months (around 5.6 years).

Mesoblast states this suggests the drug is most effective when there’s active inflammation from the disease and before irreversible fibrosis of the intervertebral disc occurs.

Additionally, patients who used opioids and received treatment with rexlemestrocel-L seemed to experience greater pain reduction than those who receive saline controls.

In fact, 28% of patients who were taking opioids and received an intra-discal injection of rexlemestrocel-L stopped taking their opioids.

That’s compared to 8% of those who received the saline control.

The company has also received feedback from the US Food & Drug Administration’s Office of Tissues and Advanced Therapies on the phase 3 program.

On the back of the feedback, it plans to conduct another phase 3 trial. This one could support submissions for approval in the US and EU.

The new trial’s endpoint will be pain reduction at the 12-month mark. Its secondary endpoints will be functional improvement and reduction in opioid use.

Mesoblast share price snapshot

The Mesoblast share price has been suffering lately.

The company’s stock is currently trading for 23% less than it was this time last month. It’s has also fallen 48% since this time last year.

The post Why is the Mesoblast (ASX:MSB) share price taking off on Wednesday? appeared first on The Motley Fool Australia.

More reading

• The Mesoblast (ASX:MSB) share price has tumbled 25% in a month. What’s going on?
• These are the 10 most shorted ASX shares
• These were the worst performing ASX 200 shares in December
• Why the Mesoblast (ASX:MSB) share price is rising 5% today
• Why Bega Cheese, Magnis, Mesoblast, and Neometals shares are pushing higher

Motley Fool contributor Brooke Cooper 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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