What's going on with the Mesoblast (ASX:MSB) share price in 2020?

The Mesoblast limited (ASX:MSB) share price has been on a rollercoaster ride in 2020. Here's what you need to know…

| More on:
Share market uncertainty

Image source: Getty Images

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 Mesoblast limited (ASX: MSB) share price has had an incredibly eventful year.

The stem cell-focused biotech company's shares have been as high as $5.70 and as low as $1.02.

Today, the Mesoblast share price sits at $2.40 after crashing over 40% lower last week.

What is happening with the Mesoblast share price?

Mesoblast has been extremely busy this year with a number of key trials and applications.

This includes running a trial for remestemcel-L in the treatment of COVID-19 Acute Respiratory Distress Syndrome (ARDS), an application for remestemcel-L to treat paediatric patients with steroid-refractory acute graft versus host disease (SR-aGvHD), and a trial of rexlemestrocel-L in patients with advanced chronic heart failure.

Unfortunately, after so much promise, the company has fallen short on each occasion.

Advanced chronic heart failure.

Last week Mesoblast released the top-line results from the landmark DREAM-HF Phase 3 randomised controlled trial. This was a trial of its allogeneic cell therapy rexlemestrocel-L (REVASCOR) in 537 patients with advanced chronic heart failure.

Rexlemestrocel-L is a therapy that was being developed with Teva Pharmaceutical Industries until 2016, when the pharma giant walked away from the project due to weak data.

While the DREAM-HF trial showed a reduction in the incidence of heart attacks or strokes, there was no reduction in recurrent non-fatal decompensated heart failure events. This was the trial's primary endpoint.

Remestemcel-L for paediatric SR-aGvHD.

In October the Mesoblast share price crashed lower after the US Food and Drug Administration (FDA) decided not to approve its remestemcel-L therapy for the treatment of paediatric patients with SR-aGvHD.

Instead, the FDA has requested that Mesoblast undertake at least one additional randomised, controlled study in adults and/or children. This is to provide further evidence of the effectiveness of remestemcel-L for SR-aGVHD.

Remestemcel-L for COVID-19 ARDS.

The icing on the cake for Mesoblast was last week's announcement that its randomised controlled trial of remestemcel-L in ventilator-dependent patients with moderate to severe ARDS due to COVID-19 infection was a failure.

That announcement revealed that the Data Safety Monitoring Board (DSMB) has performed a third interim analysis on the trial's first 180 patients.

And while the DSMB has reported that there were no safety concerns, importantly, it noted that the trial is unlikely to meet its 30-day mortality reduction endpoint at the planned 300 patient enrolment. In light of this, the DSMB effectively ended the trial early by instructing Mesoblast to recruit no further patients.

The company has suggested that changes in the treatment regimens for COVID-19 patients are to blame for the trial's failure.

It explained: "During the course of the trial, as the pandemic has evolved, numerous changes in the treatment regimens for COVID-19 patients occurred, including both prior to and while on mechanical ventilation that may have an effect on the mortality endpoint in the trial."

This trial data has now called into question the company's deal with pharma giant Novartis that was potentially worth ~US$1.2 billion.

That agreement had an initial focus on the development of a treatment for ARDS, including that associated with COVID-19. Whether this focus still has a future, the two companies will no doubt have to work out in the coming weeks and months.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

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

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Kogan, Monash IVF, OFX, and ResMed shares are falling today

Why are these shares taking a tumble today? Let's find out.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Appen, DroneShield, Gentrack, and New Hope shares are dropping today

These shares are starting the week in the red. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Dexus, Dusk, Fletcher Building, and Paladin Energy shares are falling today

These shares are ending the week in the red. But why?

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Treasury Wine shares: Buy, hold, or sell? Here's Macquarie's take

What is Macquarie forecasting for Treasury Wine shares amid the CEO’s unexpected exit?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Newmont, NRW, Peet, and Treasury Wine shares are dropping today

Let's find out why investors are selling down these shares on Thursday.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aristocrat, EBR, GQG, and Insignia shares are tumbling today

These shares are having a tough time on hump day. Let's find out why.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Healius, Light & Wonder, REA Group, and Regis Resources shares are falling today

These shares are ending the week in the red. Let's find out why.

Read more »