Mesoblast Ltd’s Share Price Climbs 5% on Fast Track Approval

Mesoblast Ltd’s Share Price Climbs 5% on Fast Track Approval

Mesoblast Ltd [ASX:MSB] is a global leader in developing innovative cell-based medicines. Today, the stock climbed more than 5%, to $1.88. Investors in MSB are now sitting on returns of 31.47% year-to-date. Not bad for a little over two months into the year.

What happened to the Mesoblast share price?

Today, MSB announced that the Food and Drug Administration (FDA) has granted a ‘fast track’ designation for the use of its cell therapy, MSC-100-IV.

The therapy aims to benefit children with steroid refractory acute Graft Versus Host Disease. The fast track designation has the potential to shorten FDA approval time.

Should you buy Mesoblast shares?

MSB said their MSC-100-IV cell therapy could lead to commercial benefit for the company. At this point, it’s hard to tell how it could impact earnings. That’s why I suggest waiting for more information before jumping in.

Regards,

Härje Ronngard,

Junior Analyst, Money Morning

PS: It’s not always easy to find growth among billion-dollar stocks. Unless they can significantly increase earnings, you’d be lucky to get double-digit returns. That’s why some investors prefer the smaller end of the market.

Small-cap stocks are a riskier investment. There is no running away from it. But they can potentially grow earnings 10-fold in a short space of time.

Small-cap specialist Sam Volkering has been on the other end of small-caps running up 1,000% or more.

So far in 2017, Sam hasn’t recommended a losing stock yet. In his advisory service, Australian Small-Cap Investigator, his top three active investments are up 304.57%, 466.04% and 1,624.49%.

To find out more, click here.

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Harje Ronngard

Harje Ronngard

With an academic background in finance and investments, Harje knows how simple, yet difficult investing can be. He has worked with a range of assets classes, from futures to equities. But he’s found his niche in equity valuation.

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