- Mesoblast has raised A$75 million to fund the expansion of its product inventory, a potential commercial U.S. launch, and for Phase 3 trials
- It’s preparing for a potential U.S. launch of its remestemcel-L product for treating acute Graft Versus Host Disease
- Phase 3 trials to be completed involve MPC-06-ID for treating chronic lower back pain and Revascor for advanced heart failure
Mesoblast has completed a A$75 million capital raising through a placement to existing and new Australian and global institutional investors.
This placement will result in the issue of 37.5 million new fully-paid ordinary shares at a price of $2 per share. This price represents a 3.15 per cent discount to the 10-day VWAP at the close of trading on September 30 2019.
The placement funds will be used to expand Mesoblast’s product inventory in preparation for a potential commercial launch of remestemcel-L, in the United States.
Mesoblast is a global leader in developing allogeneic cellular medicines. Remestemcel-L is the company’s lead product for the treatment of acute Graft Versus Host Disease (aGVHD) following allogeneic bone marrow transplantation.
“We are very pleased with the significant broadening of our institutional register and the strong continued support from our existing shareholders, with demand exceeding the funds raised. Mesoblast is well funded to execute the commercial strategy for potential launch of its first allogeneic cell therapy in the United States,” CEO Dr Silviu Itescu said.
Additionally, the proceeds will also be used to complete Phase 3 trials for MPC-06-ID, a product currently under investigation for treating chronic lower back pain, as well as for Revascor which treats advanced heart failure.
The placement was conducted with Bell Potter Securities as lead manager and bookrunner, and Aitken Murray Capital Partners as co-manager.