Why the Mesoblast share price is leading the ASX 200 on Monday

The Mesoblast limited (ASX:MSB) share price is the best performer on the ASX 200 on Monday. Here's why it is charging higher…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The best performer on the S&P/ASX 200 Index (ASX: XJO) on Monday has been the Mesoblast limited (ASX: MSB) share price by some distance.

In afternoon trade the allogeneic cellular medicines developer's shares are up a sizeable 8% to $3.65.

Why is the Mesoblast share price storming higher today?

Investors have been buying the company's shares after it provided an update on its allogeneic mesenchymal stem cell (MSC) product candidate, remestemcel-L.

According to the release, an expanded access protocol (EAP) has been initiated in the United States for compassionate use of remestemcel-L in the treatment of COVID-19 infected children with cardiovascular and other complications of multisystem inflammatory syndrome (MIS-C).

This means that patients aged between two months and 17 years may receive one or two doses of remestemcel-L within five days of referral under the EAP.

The company advised that the protocol was filed with the United States Food and Drug Administration (FDA) and provides physicians with access to remestemcel-L for an intermediate-size patient population under its existing Investigational New Drug application.

What is MIS-C?

MIS-C is a life-threatening complication of COVID-19 in otherwise healthy children and adolescents. It includes massive simultaneous inflammation of multiple critical organs and their vasculature.

In approximately 50% of cases this inflammation is associated with significant cardiovascular complications that directly involve the heart muscle and may result in decreased cardiac function.

Furthermore, the virus can result in dilation of coronary arteries with unknown future consequences.

Remestemcel-L is believed to have immunomodulatory properties to counteract the inflammatory processes by down-regulating the production of pro-inflammatory cytokines, increasing production of anti-inflammatory cytokines, and enabling recruitment of naturally occurring anti-inflammatory cells to involved tissues.

The therapy comprises culture-expanded mesenchymal stem cells that are derived from the bone marrow of an unrelated donor. It is then administered in a series of intravenous infusions.

Important therapeutic benefits.

Mesoblast's Chief Medical Officer, Dr Fred Grossman, appears optimistic that remestemcel-L can offer important therapeutic benefits to MIS-C patients.

He commented: "The extensive body of safety and efficacy data generated to date using remestemcel-L in children with graft versus host disease suggest that our cellular therapy could provide a clinically important therapeutic benefit in MIS-C patients, especially if the heart is involved as a target organ for inflammation."

"Use of remestemcel-L in children with COVID-19 builds on and extends the potential application of this cell therapy in COVID-19 cytokine storm beyond the most severe adults with acute respiratory distress syndrome," he concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a high note this Friday.

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 shares leading the charge higher this week

Investors have been piling into these four ASX 200 shares this week. But why?

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why Catapult, Champion Iron, Healthco, and Meeka Metals shares are pushing higher today

These shares are ending the week on a high. But why?

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors saw another day of mild gains for the stock market this Thursday.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Champion Iron, Clarity Pharmaceuticals, St Barbara, and Woodside shares are charging higher today

These shares are having a good session today. But why are investors buying them?

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors panicked when the latest inflation figures came out today.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Mac Copper, Pro Medicus, Web Travel, and Yancoal shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a pleasant Tuesday session for ASX investors today.

Read more »