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- Mesoblast (MSB) has raised US$90 million (A$138 million) to manufacture its cell therapy treatment for COVID-19 patients with respiratory failure
- Last month, the company found its treatment was 83 per cent effective against COVID-19 patients with acute respiratory distress syndrome (ARDS)
- Mesoblast issued 43 million shares to existing and new institutional investors at a price of $3.20 per share
- Majority of the funds will be used to scale-up manufacturing, while the remaining fund will be used for working capital and corporate purposes
- Mesoblast is down 4.07 per cent on the market this morning, trading for $3.30 per share
Mesoblast (MSB) has raised US$90 million (A$138 million) to manufacture its cell therapy treatment, remestemcel-L treatment, for COVID-19 patients.
Last month, the company found its treatment was 83 per cent effective against COVID-19 patients with acute respiratory distress syndrome (ARDS).
The trial showed that 75 per cent of the COVID-19 patients had successfully come off ventilator support around 10 days after the treatment.
In contrast, one New York hospital network only saw a 12 per cent survival rate using the standard of care within the same period Mesoblast treated its patients.
Placement
Mesoblast issued 43 million shares to existing and new institutional investors at a price of $3.20 per share.
The majority of the funds will be used to scale-up manufacturing of remestemcel-L for the treatment of critically ill patients suffering from diseases caused by cytokine release syndromes associated with high mortality, particularly COVID-19.
The remaining funds will be used for working capital and general corporate purposes.
“We greatly appreciate the support shown by both our existing investors and new institutional investors, with demand for the placement far exceeding the funds raised,” Chief Executive Dr Silviu Itescu said.
“We look forward to updating the market as this important COVID-19 ARDS trial progresses and to its completion in the coming months,” he added.
Mesoblast is down 4.07 per cent on the market this morning, trading for $3.30 per share at 11:24 am AEST.
