The market may be charging higher today, but that gain is nothing compared to the one that is being made by the Mesoblast Limited (ASX: MSB) share price.
In afternoon trade the shares of the world leader in the development and commercialisation of allogeneic cellular medicines are up almost 6% to $1.39.
Why is the Mesoblast share price storming higher today?
As well as getting a bump from improving investor sentiment, Mesoblast’s shares were given a lift this morning when it announced that it has completed its patient recruitment for the events-driven Phase 3 trial of its product candidate Revascor (MPC-150-IM) for advanced chronic heart failure.
This trial will evaluate whether Revascor reduces recurrent non-fatal heart failure-related major adverse cardiac events (HF-MACE) and prevents or delays terminal cardiac events (TCEs) over a period of at least 12 months.
It follows a successful Phase 2 trial which found that a single dose of Revascor prevented any TCEs or hospitalisation events over three years in a similar patient cohort.
According to the release, the company has enrolled approximately 570 patients across 55 centres in North America.
What is the opportunity?
This has the potential to be a lucrative product for Mesoblast. The release explains that there are over 8 million patients with heart failure in the United States alone, with 15-20% refractory to all existing medicines and progressing to advanced heart failure. These patients represent a major unmet medical need due to their high rates of HF-MACE events and mortality.
Mesoblast chief executive Dr Silviu Itescu believes this is a milestone for the company.
He said: “Completion of recruitment in this Phase 3 trial, the largest cell therapy trial for heart failure, is a key milestone for Mesoblast and has been achieved on plan. This is a substantial step forward in our objective to bring an effective therapy to countless patients with progressive heart failure, and a tremendous commercial opportunity for Mesoblast.”
Should you invest?
Mesoblast is certainly at the speculative end of the healthcare sector, but has some potentially lucrative products under development. This could make it worth considering, but only for investors with a high tolerance for risk.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.