Mesoblast Ltd [ASX:MSB] climbed 6.5% this morning, to a high of $2.60 per share. The rally added as much as $70 million to the biotech’s market cap.
What happened to the Mesoblast share price?
MSB develops cell-based medicines. One of their lead product candidates is MPC-150-IM, which is designed to treat chronic congestive heart failure. The product is still in trial phase.
It was an announcement about MPC-150-IM which spiked MSB’s share price this morning. MSB announced that MPC-150-IM was successful in Phase 3 trials. Phase 3 trials measure the effectiveness of a drug or product.
Dr Emerson C Perin, lead investigator for the ongoing trial said:
‘It is very pleasing to see that this large and rigorously conducted Phase 3 trial of Mesoblast’s cell therapy was successful in the pre-specific interim futility analysis for the trial’s efficacy endpoint in the first 270 patients.’
What now for MSB shares?
In 2016, more than 15 million people suffered from chronic congestive heart failure. If you were going to invest in MSB based on MPC-150-IM, it’s important to know there’s a big addressable market.
But this information doesn’t mean you should invest in MSB.
You should look at MSB’s complete operations, rather than a single drug or product. Yet, if you believe MPC-150-IM will contribute to a significant increase in revenues and profits, you might want to take a close look at MSB as an investment.
Junior Analyst, Money Morning
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