Mesoblast Successfully Completes Placement and Accelerated Entitlement Offer

Rhea-AI Summary

Mesoblast Limited raises A$97 million through entitlement offer and institutional placement, with Dr. Eric Rose subscribing for additional shares.

Financial Analyst

The capital raise by Mesoblast Limited through its entitlement offer and institutional placement, amounting to A$97 million, is a significant financial move for the company. This influx of capital is likely to bolster the company's balance sheet, providing the necessary funds to continue its research and development into allogeneic cellular medicines. The participation of major shareholders, including a substantial investment by Dr. Eric Rose, signals confidence in the company's trajectory. However, investors should assess the potential dilutive effect of the new shares on their holdings and consider the company's valuation post-capital raise.

Furthermore, the commitment of funds by a high-profile medical professional such as Dr. Rose may also serve as a qualitative indicator of the company's potential, given his background and expertise. Yet, it is crucial for investors to evaluate whether the capital raised aligns with the company's strategic growth plans and the competitive landscape of the biotech sector. The long-term success of this capital injection will depend on Mesoblast's ability to effectively utilize the funds to achieve clinical and commercial milestones.

Medical Research Analyst

Mesoblast's focus on allogeneic cellular medicines for inflammatory diseases positions it within a cutting-edge segment of the biotechnology industry. The successful capital raise provides the company with an opportunity to further its clinical trials and potentially bring new therapies to market. The involvement of Dr. Eric Rose not only adds credibility to the company's endeavors but also underscores the potential impact of its research on the treatment of heart-related conditions, especially considering Dr. Rose's history with the LVAD.

Investors should monitor the company's pipeline progress and regulatory interactions, particularly with entities like the FDA, as these will be critical in determining the company's ability to capitalize on its research investments. The long-term implications for Mesoblast's stock will largely hinge on the successful development and commercialization of its cellular therapies, which address a significant unmet medical need in the treatment of inflammatory diseases.

Market Research Analyst

The biotech sector is known for its high volatility and the substantial capital required to fund R&D and navigate regulatory pathways. Mesoblast's successful capital raise indicates a robust fundraising environment and investor willingness to support biotech firms with promising pipelines. The A$97 million raised could enable Mesoblast to maintain its competitive edge in the allogeneic cellular medicine space, which is anticipated to grow due to increasing demand for innovative treatments.

Analyzing the investment patterns and the confidence shown by existing shareholders, including Dr. Rose's personal investment, can offer insights into the perceived market potential of Mesoblast's technology. However, the impact on the stock will also depend on broader market trends, investor sentiment towards biotech innovation and the outcomes of Mesoblast's ongoing and future clinical trials. It is essential for stakeholders to consider these factors alongside the company's financial health and R&D progress when evaluating the potential impact of this news on the company's market position.

NEW YORK, March 13, 2024 (GLOBE NEWSWIRE) -- Mesoblast Limited (Nasdaq:MESO; ASX:MSB), global leader in allogeneic cellular medicines for inflammatory diseases, today announced it has received firm commitments to complete its pro-rata accelerated non-renounceable entitlement offer that was launched on 4 December, 2023 (Entitlement Offer). Together the entitlement offer and institutional placement raised gross proceeds of A$97 million, including A$36.7 million committed today on the same terms as the Entitlement Offer, primarily from Mesoblast’s existing major shareholders.

Dr. Eric Rose, the Company’s Chief Medical Officer and a director of Mesoblast, subscribed for additional shares of A$1.5 million, subject to shareholder approval. Dr. Rose is a world-renowned heart surgeon who performed the world’s first successful heart transplant in children and was for many years Chairman of Columbia University’s Department of Surgery. Dr. Rose was the Principal Investigator of the pivotal trial resulting in FDA approval of the first implantable left ventricular assist device (LVAD) for long term support of patients with heart failure, spawning an entire new industry.

About Mesoblast
Mesoblast (the Company) is a world leader in developing allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions. The Company has leveraged its proprietary mesenchymal lineage cell therapy technology platform to establish a broad portfolio of late-stage product candidates which respond to severe inflammation by releasing anti-inflammatory factors that counter and modulate multiple effector arms of the immune system, resulting in significant reduction of the damaging inflammatory process.

Mesoblast has a strong and extensive global intellectual property portfolio with protection extending through to at least 2041 in all major markets. The Company’s proprietary manufacturing processes yield industrial-scale, cryopreserved, off-the-shelf, cellular medicines. These cell therapies, with defined pharmaceutical release criteria, are planned to be readily available to patients worldwide.

Mesoblast is developing product candidates for distinct indications based on its remestemcel-L and rexlemestrocel-L allogeneic stromal cell technology platforms. Remestemcel-L is being developed for inflammatory diseases in children and adults including steroid refractory acute graft versus host disease, biologic-resistant inflammatory bowel disease, and acute respiratory distress syndrome. Rexlemestrocel-L is in development for advanced chronic heart failure and chronic low back pain. Two products have been commercialized in Japan and Europe by Mesoblast’s licensees, and the Company has established commercial partnerships in Europe and China for certain Phase 3 assets.

Mesoblast has locations in Australia, the United States and Singapore and is listed on the Australian Securities Exchange (MSB) and on the Nasdaq (MESO). For more information, please see www.mesoblast.com, LinkedIn: Mesoblast Limited and Twitter: @Mesoblast

Forward-Looking Statements
This press release includes forward-looking statements that relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. We make such forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements should not be read as a guarantee of future performance or results, and actual results may differ from the results anticipated in these forward-looking statements, and the differences may be material and adverse. Forward-looking statements include, but are not limited to, statements about: the initiation, timing, progress and results of Mesoblast’s preclinical and clinical studies, and Mesoblast’s research and development programs; Mesoblast’s ability to advance product candidates into, enroll and successfully complete, clinical studies, including multi-national clinical trials; Mesoblast’s ability to advance its manufacturing capabilities; the timing or likelihood of regulatory filings and approvals (including any future decision that the FDA may make on the BLA for remestemcel-L for pediatric patients with SR-aGVHD), manufacturing activities and product marketing activities, if any; the commercialization of Mesoblast’s product candidates, if approved; regulatory or public perceptions and market acceptance surrounding the use of stem-cell based therapies; the potential for Mesoblast’s product candidates, if any are approved, to be withdrawn from the market due to patient adverse events or deaths; the potential benefits of strategic collaboration agreements and Mesoblast’s ability to enter into and maintain established strategic collaborations; Mesoblast’s ability to establish and maintain intellectual property on its product candidates and Mesoblast’s ability to successfully defend these in cases of alleged infringement; the scope of protection Mesoblast is able to establish and maintain for intellectual property rights covering its product candidates and technology; estimates of Mesoblast’s expenses, future revenues, capital requirements and its needs for additional financing; Mesoblast’s financial performance; developments relating to Mesoblast’s competitors and industry; and the pricing and reimbursement of Mesoblast’s product candidates, if approved. You should read this press release together with our risk factors, in our most recently filed reports with the SEC or on our website. Uncertainties and risks that may cause Mesoblast’s actual results, performance or achievements to be materially different from those which may be expressed or implied by such statements, and accordingly, you should not place undue reliance on these forward-looking statements. We do not undertake any obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Release authorized by the Chief Executive.

For more information, please contact:

Corporate Communications / Investors	Media
Paul Hughes	BlueDot Media
T: +61 3 9639 6036	Steve Dabkowski
E: investors@mesoblast.com	T: +61 419 880 486
	E: steve@bluedot.net.au

What is Mesoblast Limited's ticker symbol?

Mesoblast Limited's ticker symbol is MESO.

How much did Mesoblast Limited raise through the entitlement offer and institutional placement?

Mesoblast Limited raised gross proceeds of A$97 million through the entitlement offer and institutional placement.

Who subscribed for additional shares in Mesoblast Limited?

Dr. Eric Rose, the Company’s Chief Medical Officer and a director of Mesoblast, subscribed for additional shares of A$1.5 million, subject to shareholder approval.