Mesoblast Share Price Up on Encouraging COVID-19 Trails (ASX:MSB)

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At time of writing, the Mesoblast Ltd [ASX:MSB] share price is up 4.47%, trading at $3.27.

The MSB share price moved higher after announcing positive outcomes in relation to Remestemcel-L phase three trials for COVID-19 acute respiratory distress syndrome (ARDS).

ASX MSB Share Price Chart

Source: Optuma

MSB share price gets lift from stage three trials

Biotechnology companies like Mesoblast are working rapidly on COVID-19 solutions.

Globally, currently there are 51.3 million cases, 33.4 million recovered, and sadly, 1.27 million deaths.

MSB’s drug, Remestemcel-L, is designed for moderate to severe acute respiratory distress syndrome (ARDS) due to COVID-19 infection.

Here’s the punchline from today’s announcement:

The company recently announced that the randomized controlled Phase 3 trial of Remestemcel-L in patients with moderate to severe acute respiratory distress syndrome (ARDS) due to COVID-19 infection had received a recommendation to continue from the independent Data Safety Monitoring Board (DSMB) following completion of the trial’s second interim analysis.

These trails were performed on 135 people.

Outlook for Mesoblast share price may hinge on competition

Taking a quick look at the chart for MSB shares, you can see some immense spikes as well as sharp falls:

Mesoblast Share Price Chart

Source: Optuma

From where the MSB share price sits at time of writing, if it falls away further, then the level of $3.00 may be enough to halt the fall, proving strong in the past.

Should it turn to the upside, then the levels of $3.38 and $4.45 may become the focus in the future.

I think the outlook for the MSB share price may hinge on the competing solutions that come to market.

For example, if the Pfizer and BioNTech vaccine is as effective as they hope, the need for therapies like MSB’s product may diminish.

If the virus can’t replicate in the first place, it may not matter if MSB’s product is effective.

This is a key risk.

If you are looking for other companies that may benefit from post-lockdown conditions, you can find that here.

Two companies covered in this free report do safety technology.

Regards,

Carl Wittkopp,
For Money Morning

About Carl Wittkopp

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

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