Coronavirus Stocks Flying Up, Mesoblast Share Price to Follow? (ASX:MSB)

By ,

Today we look at the Mesoblast Ltd [ASX:MSB] share price in light of the recent successes of other coronavirus ‘solution’ stocks. A famous quote comes to mind…

In the midst of every crisis, lies great opportunity’ — Albert Einstein.

The current pandemic currently gripping the global economy proves no different.

Perhaps you have heard of Harvard medical professor Timothy Springer, who earned a whopping AU$1.2 billion during the coronavirus crisis.

Professor Springer has Massachusetts-based company Moderna Inc [NASDAQ:MRNA] to thank for his newly accumulated wealth.

The biotechnology firm attempting to develop a vaccine for the novel coronavirus has seen its share price rocket by 162% this year.

Springer is not the only one who has made big profits from the global pandemic.

Electronic document signing service DocuSign Inc [NASDAQ:DOCU] and video conferencing tool Zoom Video Communications Inc [NASDAQ:ZM] have both gone gangbusters with so many people working from home.

‘The Coronavirus Portfolio’: The two-pronged plan to help you deal with the financial implications of COVID-19. Download your free report here.

Mesoblast closer to a cure

What we can learn from the late Albert Einstein and Professor Springer, is that opportunity can present itself at any time.

You don’t have to be invested in Moderna either.

Take Melbourne-based biotech Mesoblast for instance.

The developer of biological products for regenerative medicine today announced some impressive results in their quest for a COVID-19 cure.

MSB is developing a therapy for COVID-19 patients with moderate/severe acute respiratory distress syndrome (ARDS).

Clinical trials reported an 83% survival rate in ventilator-dependent COVID-19 patients, with 75% successfully coming off ventilator support within a median of 10 days.

In contrast, only 9% of ventilator-dependent COVID-19 patients at a major referral hospital network in New York City were able to come off ventilator support when treated with standard care.

As you might expect, the Mesoblast share price has soared 28.75% to $2.53 as investors react to the good news.

MSB shares currently have a one-year return of 62.7%, coming off a high of $3.07 back in January.

What are you getting with Mesoblast?

MSB is based both in Australia and the US, with a location in Singapore too.

The company develops cellular medicines for inflammatory diseases for applications in key markets including the United States, Europe, Japan, and China.

MSB’s proprietary product RYONCIL™ (remestemcel-L) has been accepted for priority review by the FDA in the US and is being developed for other rare diseases along with COVID-19 derivative ARDS.

I’d say the company is in a relatively healthy financial position too.

Financial highlights for H1 FY2020 include: 43% increase in revenues to US$19.2 million, 32% reduction in loss after tax to US$30.1 million, and cash on hand was US$81.3 million at 31 December.

Meaning Mesoblast is well equipped to continue development of remestemcel-L in the treatment of ARDS in coronavirus patients.

With the current dismal survival outcomes in COVID-19 patients who progress to ARDS and require ventilators, today’s announcement underscores the potential MSB’s therapy has.

With clinical trials only kicking off at the beginning of April, no doubt further announcements will be eagerly anticipated.

In the meantime, make sure you check out our Coronavirus Portfolio, where one of our Money Morning analysts reveals the two types of assets that could benefit as the global pandemic rolls on.

Click here to receive your free copy.


Lachlann Tierney,
For Money Morning

About Lachlann Tierney

Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest…

Mesoblast [ASX:MSB] Shares Fall 12% On Litigation Update

Biotech stock Mesoblast [ASX:MSB] plunged 12% on Tuesday after updating the market on a second class action lawsuit lodged against it.

Mesoblast [ASX:MSB] Shares Fall On Q3 Results

Biotech company Mesoblast [ASX:MSB] released its third quarter results today with MSB shares trading down following the update.

MSB Share Price Up — Trial Drug Helps Against Heart Attacks (ASX:MSB)

Up-and-coming biotech player Mesoblast [ASX:MSB] is on the up today. The regenerative medicine company announced some promising results from a Phase III drug trial from data that was shared at the American Heart Association’s annual ‘Scientific Sessions’, an exhibition of the latest findings and insights into all things heart health related.

Mesoblast Shares Tumble as Losses Widen (ASX:MSB)

The MSB share price down 14%. The Mesoblast [ASX:MSB] posted a FY21 net loss of $98.8 million as the FDA asks for further trials of MSB’s emergency COVID treatment…  

Mesoblast Share Price Bounce Back on Positive Trial Data (ASX:MSB)

It seems 2021 continues to be a tough year for the ever-volatile Mesoblast Ltd [ASX:MSB]. Thankfully though, today has brought some relief to shareholders. The MSB share price is up 7.38%…

Mesoblast Share Price Down — Secures a Dire Cash Injection (ASX:MSB)

Seven months ago Mesoblast Ltd [ASX:MSB] was on a tear. This high-flying biotech looked like it had the makings of something great.
Today though, that couldn’t be further from the truth. The MSB share price is down 5.08%.