Biotechnology company Mesoblast limited's (ASX: MSB) share price added to the strong gains it notched up from April through June, closing up another 16.3% in July. An impressive performance considering the S&P/ASX 200 Index (ASX: XJO) only gained 0.5% in July.
Mesoblast's share price was hammered badly in the wider market sell-off during early COVID-19 lockdown measures, tumbling a gut-wrenching 60% from 23 February through its low on 24 March.
Since its 23 March low, Mesoblast's share price has come roaring back, up 241% by 31 July.
Year-to-date Mesoblast's share price is up 115%, giving the company a market cap of $2.6 billion.
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What does Mesoblast do?
Mesoblast is a regenerative medicine company developing treatments for inflammatory ailments, cardiovascular disease and back pain.
Mesoblast uses its proprietary technology platform to develop and commercialise innovative allogeneic cellular medicines to treat complex diseases. The company targets diseases that are resistant to a conventional standard of care and where inflammation plays a central role.
Mesoblast has four phase-3 products nearing registration:
- Revascor for advanced chronic heart failure
- MPC-06-ID for chronic low back pain due to degenerative disc disease
- Remestemcel-L for moderate to severe acute respiratory distress syndrome (ARDS) due to COVID-19 infection
- Ryoncil for use in steroid-refractory acute host disease
Why did Mesoblast's share price gain again in July?
Mesoblast's share price benefited from the company's involvement in treating COVID-19.
In the first week of July, Mesoblast released a promising update on its allogeneic mesenchymal stem cell (MSC) product candidate, remestemcel-L.
The company reported an expanded access protocol (EAP) had been initiated in the United States for the compassionate use of remestemcel-L. Patients who tested positive for the virus aged between 2 months and 17 years with pre-existing cardiovascular issues could access remestemcel-L within 5 days of referral under the EAP.
Mesoblast's financial performance has also been strong. The company recorded a 113% increase in overall revenues for the first 9 months of the 2020 financial year, compared to the first 9 month of the 2019 financial year. Mesoblast's balance sheet was also fortified by a $138 million fund raising in May. The company's next earning report is scheduled to be released on 27 August.
Mesoblast's share price has continued to run higher, up 16% so far in August.
