The Mesoblast Limited (ASX: MSB) share price has already rocketed 4.83% in early trade after the company's first quarter results update this morning.
Why is the Mesoblast share price moving?
Mesoblast reported its operational highlights and financial results for the first quarter ended 30 September 2019.
The Aussie medical group saw 36% growth on the prior corresponding period (pcp) in group revenues to US$15.0 million. Mesoblast's TEMCELL revenues rocketed 85% higher on pcp in Japan in a boost for the company.
Mesoblast reported a 72% reduction in loss after tax compared to Q1 2019. This was driven by a 33% decrease in research and development expenditure as well as the increase in revenues.
The Mesoblast share price closed 0.56% higher at $1.80 per share yesterday but could climb higher in early trade.
What about operational highlights?
Mesoblast saw continued growth in its commercialisation revenues thanks largely to the Japanese market. The company's acute Graft Versus Host Disease (aGVHD) market adoption in Japan was strong and Mesoblast is hoping for the same in the United States.
The Mesoblast share price will be one to watch today following the broadly positive quarterly update on a financial and operational front.
Mesoblast entered into an agreement with Lonza in October 2019 for commercial product manufacture. The Aussie company is looking to facilitate appropriate inventory build ahead of its planned remestemcel-L launch in the United States.
Mesoblast also entered into a strategic partnership with Grunenthal during the quarter. Mesoblast will receive US$150 million in upfront and milestone payments prior to the MPC-06-ID product launch.
The companies are working together to develop and commercialise the product to treat lower back pain due to a degenerative disc disease.
According to Mesoblast, cumulative milestone payments could exceed US$1 billion depending on the outcome of its Phase 3 studies and patient adoption.
The company has an upcoming FDA filing for its remestemcel-L for aGVHD. If approved, Mesoblast expects to launch the product next year.
The Mesoblast share price is up 49.21% higher in 2019 and has a market cap just over $1 billion.
