- Mesoblast (MSB) reduces its net cash usage over the March 2021 quarter as it continues to progress the development of its key medical products
- The company posted net cash outflows of US$15.5 million (A$21.7 million) over the March quarter compared to the December quarter’s US$19.76 million (A$27.7 million)
- This comes even as quarterly customer receipts came in just over US$1 million (A$1.4 million) lighter over the March quarter compared to the December quarter, at US$2.4 million (A$3.4 million)
- Mesoblast continues to work with drug regulators as it progresses through clinical trials and studies for its cellular medicines for various inflammatory diseases
- Shares in Mesoblast are up 3.86 per cent to $1.08 at 1:49 pm AEST
Mesoblast (MSB) has reduced its quarterly net cash usage over the March quarter as it continues to progress the development of its key cellular medicine products.
The company posted net cash outflows of US$15.5 million (A$21.7 million) over the March quarter compared to the December quarter’s US$19.76 million (A$27.7 million) and the March 2021 quarter’s US$25.8 million (A$36 million).
This comes even as quarterly customer receipts dipped to $2.4 million (A$3.4 million) over the March quarter this year, down by just over $1 million (A$1.4 million) compared to the December 2021 quarter.
Mesoblast said it still had US$76.8 million (A$107 million) in the bank at the end of the March quarter, with an extra US$40 million (A$56 million) available to be drawn down from existing debt facilities subject to the company achieving certain milestones.
Specifically, Mesoblast can draw US$10 million (A$14 million) from a loan facility with NovaQuest upon the achievement of marketing approval for its Ryoncil drug from the US Food and Drug Administration (FDA). Ryoncil, the brand name for Mesoblast’s remestemcel-L treatment, is designed to treat acute graft-versus-host disease (aGvHD).
Mesoblast also has potential access to US$30 million (A$42 million) from a facility with Oaktree Capital Management before the end of December this year.
Looking at the company’s clinical pipeline, Mesoblast said it had generated “substantial” new data for remestemcel-L, which it will provide to the FDA as part of its Biologics License Application (BLA) resubmission.
The company has also received the results from the first cohort of patients in a clinical trial of remestemcel-L for inflammatory bowel disease, with patient improvement recorded as early as two weeks post-administration.
Meanwhile, Mesoblast has also received new data and feedback for trials to treat COVID-19 acute respiratory distress syndrome (ARDS), chronic heart failure, and chronic low back pain.
Shares in Mesoblast were up 3.86 per cent to $1.08 at 1:49 pm AEST.