Get the Latest Investment Ideas Delivered Straight to Your Inbox.

'Stay Tuned for Data' from Regenerative Medicine Firm with 'Blockbuster Opportunity'
Research Report

Source:

The compelling aspects of this life sciences story are presented in a Dawson James report.

In a Jan. 28 research note, analyst Jason Kolbert reported that Dawson James Securities increased its target price on Mesoblast Ltd. (MESO:NASDAQ; MSB:ASX) to $15 per share from $14 because 2020 should be "a year of pivotal data and other catalysts" for the biotech. Mesoblast is currently trading at around $9.64.

Kolbert summarized the highlights of Mesoblast as an investment.

First, Mesoblast is nearing commercialization as it has three therapeutics in Phase 3. For one, a commercial rollout could take place in the U.S. this year of the company's remestemcel-L for pediatric, steroid-refractory acute graft versus host disease. The U.S. Food and Drug Administration (FDA) is currently reviewing the related biologics license application. "Success in graft versus host disease alone, in our opinion, supports the current valuation of the company," commented Kolbert.

Second, Mesoblast's regenerative medicines advantage the biotech because the "safety profile of both allogeneic (other people's) cells and autologous (your own cells) has been very well understood and established." With other cell and gene therapy medications, one must weigh their efficacy and sustainability against the adverse effects. "Mesoblast has established a strong clinical record with a series of Phase 1, Phase 2 and now pivotal trials that has demonstrated the safety profile and which address blockbuster markets such as heart failure," Kolbert wrote.

Third, heart failure, one of the indications Mesoblast is pursing, is a "blockbuster opportunity," indicated Kolbert. Mesoblast is almost done with its Phase 3 trial of Revascor in heart failure; patients should complete their last study visit this January or February. In the U.S. alone, advanced- and end-stage heart failure affects more than 8 million people. Advanced-stage heart disease accounts for more than two-thirds of all domestic hospital expenditures and costs the healthcare system about $115 billion annually.

Fourth, Mesoblast is developing a treatment, MPC-06-ID, for chronic low back pain caused by disc degeneration. Instead of steroids, cells are injected into the intravertebral space, which thereby address the underlying cause of the pain and the resulting inflammation.

Fifth, Mesoblast is working on "the Achilles heel of cell therapy," which is manufacturing, Kolbert relayed. The biotech, together with Lonza, is developing and honing an optimized process, "tightly controlling the doublings and number of passages, without compromising cell integrity."

Kolbert concluded, "Add it up: the low risk of adverse events, the ability to manufacture millions of doses and the unmet medical needs in blockbuster market opportunities such as heart failure and degenerative disc disease," noted Kolbert. "We could see an industry shift as regenerative medicine is recognized."

Dawson James has a Buy rating on Mesoblast.

[NLINSERT]

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures for Dawson James Securities, Mesoblast, January 28, 2020,

The Firm does not make a market in the securities of the subject company(s). The Firm has NOT engaged in investment banking relationships with MESO in the prior twelve months, as a manager or co-manager of a public offering and has NOT received compensation resulting from those relationships. The Firm may seek compensation for investment banking services in the future from the subject company(s). The Firm has received any other compensation from the subject company(s) in the last 12 months for services unrelated to managing or co-managing of a public offering.

Neither the research analyst(s) whose name appears on this report nor any member of his (their) household is an officer, director or advisory board member of these companies. The Firm and/or its directors and employees may own securities of the company(s) in this report and may increase or decrease holdings in the future. As of December 31, 2019, the Firm as a whole did not beneficially own 1% or more of any class of common equity securities of the subject company(s) of this report. The Firm, its officers, directors, analysts or employees may affect transactions in and have long or short positions in the securities (or options or warrants related to those securities) of the company(s) subject to this report. The Firm may affect transactions as principal or agent in those securities.

Analysts receive no direct compensation in connection with the Firm's investment banking business. All Firm employees, including the analyst(s) responsible for preparing this report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of the Firm and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.

Analyst Certification: The analyst(s) whose name appears on this research report certifies that 1) all of the views expressed in this report accurately reflect his (their) personal views about any and all of the subject securities or issuers discussed; and 2) no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this research report; and 3) all Dawson James employees, including the analyst(s) responsible for preparing this research report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of Dawson James and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.

Learn More about Which Online Broker is Right for You?

Want to read more about Regenerative Medicine investment ideas?
Get Our Streetwise Reports Life Sciences Report Newsletter Free and be the first to know!

A valid email address is required to subscribe