Shares in regenerative medicine researcher Mesoblast limited (ASX: MSB) are down 11 per cent to $1.42 in trade today after media reports surfaced that Teva Pharmaceuticals had sold 29 million shares in the group at $1.50 each.
Shares in Tel Aviv-listed pharmaceutical giant Teva are down 60 per cent over the past year, but it’s no speculative biotech and has annual revenues of more than US$20 billion. It may just be a case of Teva looking to exit non-core positions then after a rough year.
Mesoblast does though fall into the speculative bucket given its lack of revenues and high cash burn as it continues to conduct multiple costly clinical trials designed to promote the efficacy of its regenerative medicine products to treat common human conditions such as back pain or rheumatoid arthritis.
If Mesoblast can successfully commercialise several of its products it may go onto reward early-stage investors.
However, given its cash flows debt is not an option and investors were asked to tip another $50 million into the business last August while it continues its clinical trials.
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