Why is the Mesoblast share price taking a dive on Tuesday?

This high-flying share is under pressure today. But why?

| More on:
Three guys in shirts and ties give the thumbs down.

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 Ltd (ASX: MSB) share price is under pressure on Tuesday.

At the time of writing, the allogeneic cellular medicines developer's shares are down 4% to $1.04.

Though, shareholders won't be too disheartened given that its shares remain up over 200% since the start of the year.

Why is the Mesoblast share price falling today?

Investors have been selling the company's shares on Tuesday following the release of two announcements.

The first announcement was its quarterly update, which revealed modest royalty receipts of US$1.7 million for the three months ended 31 March. This brings its year to date royalty receipts to US$5.6 million.

However, this was nowhere near enough to offset its spending during the quarter. As a result, the company recorded an operating cash outflow of US$11.6 million. This led to Mesoblast ending the period with a cash balance of US$76.4 million.

But that shouldn't take away from the many positives that happened during the quarter. This includes some very promising interactions with the US Food and Drugs Administration (FDA).

Mesoblast's chief executive, Silviu Itescu, said:

We are very pleased with the positive interactions we had last quarter with the FDA, having received clarity on the path to licensure for our product candidates in pediatric acute graft versus host disease and in ischemic patients with chronic heart failure. Based on the clear responses and guidance from FDA we intend this quarter to resubmit our Biologics License Application (BLA) for approval of remestemcel-L in children with SR-aGVHD.

In addition, FDA informed us that the results from our pivotal study of rexlemestrocel-L in end-stage heart failure patients may support an accelerated approval, and we intend to have a pre-BLA meeting to discuss the data that will be provided and the timing for an accelerated approval filing.

What else was announced?

In other news, Mesoblast revealed that its chair, Joseph R. Swedish, will be stepping down from the role.

The company's board has been quick to respond. It advised that it has unanimously appointed Jane Bell AM to the role of non-executive chair, effective today.

Mr Swedish commented:

It has been an honour serving on the Board and witnessing first-hand the tremendous dedication and commitment it takes to bring a cutting-edge product to market. I feel we are on the verge of achieving that goal and I am confident that the Board, working with Silviu and the management team will achieve this milestone and capitalize on the building blocks established to date.

The Mesoblast share price is up 21% on a 12-month basis.

Should you invest $1,000 in Newcrest Mining right now?

Before you buy Newcrest Mining shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Newcrest Mining wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

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's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

More on Healthcare Shares

A man looking at his laptop and thinking.
Healthcare Shares

Should you buy the dip in the ResMed share price?

Let's see what one leading broker is saying following yesterday's pullback.

Read more »

A woman puts up her hands and looks confused while sitting at her computer.
Healthcare Shares

Down 5%: What's going on with the ResMed share price?

Let's see what has spooked investors today and caused them to push the sell button.

Read more »

Beautiful young woman drinking fresh orange juice in kitchen.
Healthcare Shares

Guess which ASX 300 stock is jumping 11% on big news

This stock is having a day to remember on Thursday. But why?

Read more »

A group of medical researchers stands side by side with each other wearing white coats in their research laboratory with scientific equipment in the background.
Healthcare Shares

Trump executive order to hit these 3 ASX pharmaceutical stocks

Donald Trump’s new executive order caused these 3 ASX pharmaceutical stocks to crash on Monday.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Healthcare Shares

Guess which ASX 200 stock is jumping 16% on big news

Let's find out what news is getting investors excited this afternoon.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Healthcare Shares

Why is this ASX 300 stock crashing 18% today?

Investors are rushing to the exits. But why? Let's look into things.

Read more »

Health professional working on his laptop.
Healthcare Shares

Are CSL shares at risk from the Trump tariffs?

How exposed are CSL shares to potential Trump medicinal tariffs?

Read more »

Donor donates blood in medical clinic. Beautiful European woman of 30 years sits in medical chair looking into camera and smiling.
Healthcare Shares

What did CSL have to say at Macquarie's 2025 conference?

Does this business have a healthy growth outlook?

Read more »