Mesoblast (ASX: MSB) Share Price Jumps
The stock jumped 9.1% to $6.33.
Mesoblast reported a half-year profit for the 1st time on 2/28 after selling marketing rights for its experimental treatments to Cephalon (CEPH).
From our 12/8/10 blog: MSB entered into a strategic alliance with CEPH in 12/10 to develop and commercialize novel adult Mesenchymal Precursor Stem Cell (MPC) therapeutics for degenerative conditions of the cardiovascular and central nervous systems. MSB received upfront payment of US$130 M (US$30M upon shareholder approval), up to $1.7 B in milestone payments, and an equity investment by CEPH of 19.99%. These conditions include Congestive Heart Failure, Acute Myocardial Infarction, Parkinson’s disease and Alzheimer’s disease. The alliance also extends to products for augmenting hematopoietic stem cell transplantation in cancer patients.
Bottom Line: The stock has more than tripled in the past 6 months, giving MSB a market value of A$1.8B making it the 2nd best performer on the All Ordinaries Index of 488 companies. MSB’s therapies, derived from adult stem cells, are being developed to treat heart disease, Parkinson’s disease and Alzheimer’s disease. MSB.AX was trading at $6.33, up $0.53 or 9.14% from the previous close of $5.80 and opened at $6.10.
