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

Up-and-coming biotech player Mesoblast Ltd [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.

This news has helped lift the MSB share price by 13.53% at time of writing and is still climbing. A clear indication that the market has responded very well to this news, a great sign for shareholders after Mesoblast had a fairly sizeable fall from grace at the tail end of 2020.

So, let’s dissect the news and reason for this positive surge.

A better way to combat strokes and heart attacks

The drug at the centre of this trial is Mesoblast’s key asset: Rexlemestrocel-L, a type of cellular medicine the company is using to fight some common inflammatory diseases.

And when it comes to these inflammatory diseases, the heart is a key concern, which is why the ongoing trials of Mesoblast’s drug for general cardiovascular health has been so fascinating.

Today though, with some more concrete results from said trials, Mesoblast has demonstrated some incredible findings. Showcasing Rexlemestrocel-L’s ability to reduce incidence of stroke and heart attack by 65% across 537 patients with a single dose.

Meanwhile, across 301 patients with high levels of inflammation, this rate was as high as 79%.  As well as an 80% reduction in instances of cardiovascular death by 80% in class II patients.

As the announcement notes:

Whereas most traditional treatments address the congestion or fluid overload associated with heart failure, rexlemestrocel-L addresses the inflammation that is at the centre of advanced chronic heart failure – widely regarded as the leading cause of death in the developed world.

The ability of rexlemestrocel-L to significantly impact cardiac death, heart attacks and strokes on top of maximal HFrEF therapy reflects the unique mechanisms-of-action of this allogeneic cellular therapy on reduction of inflammation and improved microvasculature.

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What’s next for the Mesoblast Share Price?

Looking ahead, while this result is a great start for Mesoblast, it is far from the end of a long process. After all, management will need to finalise this trial and the data from it.

Having said that, with the stock down considerably year-to-date, any good is more than welcome at the moment — particularly as Mesoblast looks to continue exploring the potential of its cellular-based medicine.

It’s certainly a stock that has a lot of risk involved, as most drug development biotechs do. For that reason, it may not be the best investment for those looking for more stable returns.

So if you’re looking for small-cap opportunities with a little value on top, then Mesoblast probably isn’t for you. Instead, we’ve put together a list of four overlooked stocks that we think are far more promising.

Check them out in our full report, for free, right here.

Regards,

Ryan Clarkson-Ledward
For Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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