Mesoblast Share Price Up, Nears Major Milestone (ASX:MSB)

The share price of Mesoblast Ltd [ASX:MSB] is up on the back of news the company is due to complete their first interim analysis in early September.

This is for their Phase 3 trial of their lead product for COVID-19 Acute Respiratory Distress Syndrome (ARDS).

MSB shares are up 4.68%, to trade at $4.03 at the time of writing.

MSB Share Price Chart - Mesoblast

Source: Optuma

What’s happening at Mesoblast?

The company’s primary goal is to develop ‘innovative allogeneic cellular medicines to treat complex diseases resistant to conventional standard of care and where inflammation plays a central role.

But they quickly turned their attention to acute respiratory distress syndrome (ARDS) related to COVID-19.

Right now, there are no approved treatments for ARDS in patients with COVID-19, which is the primary cause of death for suffers of COVID-19.

In a recent announcement Mesoblast Chief Executive Dr Silviu Itescu stated:

Remestemcel-L has two imminent major milestones, the interim analysis in the ongoing Phase 3 trial of remestemcel-L in COVID-19 patients with acute respiratory distress syndrome and the FDA advisory committee panel review of our submission for potential approval of RYONCIL™.

The ongoing trials of remestemcel-L showed that patients at Mt Sinai Hospital in New York with moderate to severe ARDS were successfully taken off a ventilator and discharged from hospital within a median of 10 days.

This was shown to be true in nine out of 12 cases of 75% of the patients.

So promising early signs for the treatment are there.

MSB share price chart looks bullish

With the ongoing trails of Remestemcel-L and no end in sight for the COVID-19 pandemic, MSB may be well-placed for a bright future.

MSB Share Price Chart 2 - Mesoblast


Looking at the MSB share price, back in January 2020 the 50-day moving average (green line) crossed over the 200-day moving average (red line).

Since then it has moved further up and away, indicating a bullish outlook.

With the MSB share price sitting at $4.03 at the time of writing, on reasonable volume should the movement up continue the next level that may provide resistance is $4.50 — being the most recent high, this may prove to be a very strong level.

Should the price turn and fall, then the levels of $3.42 and $3.07 may become the focus on the downside.


Carl Wittkopp,
For Money Morning

PS: Four well-positioned small-cap stocks: These innovative Aussie companies are well-placed to capitalise on post-lockdown megatrends. Click here to learn more.


Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

Money Morning Australia