The Mesoblast Limited (ASX: MSB) share price is rising higher today following the release of the company's results for the half-year ended 31 December 2019.
After trading as much as 4% higher today, Mesoblast shares are currently marginally up by 0.41% at the time of writing.
Mesoblast is an Australian company that engages in the development of biologic products for regenerative medicine.
Strong revenue growth and reduced losses
Mesoblast reported today a strong 43% increase in revenues to US$19.2 million, compared with the US$13.5 million achieved in the prior corresponding period (pcp) of 1H19.
This strong result was driven by a 73% growth in revenues from sales of TEMCELL HS Inj. to US$3.8 million, up from US$2.2 million in the pcp. These sales were achieved by Mesoblast's licensee for its steroid-refractory acute graft versus host disease (SR-aGVHD) product in Japan.
In addition, Mesoblast was able to achieve a 36% increase in revenues to US$15.0 million from its strategic partnerships.
During the period, Mesoblast also recorded a 32% reduction in loss after tax to US$30.1 million. This result was driven by the aforementioned 43% increase in total revenues, as well as a 22% decrease in the company's research and development spend which has now been reduced to US$26.5 million.
The company had cash on hand of US$81.3 million at the end of the period. On this, Mesoblast added that over the next 12 months, it could possibly have access to an additional US$62.5 million through existing financing facilities as well as through strategic partnerships.
Key achievements during the half
Mesoblast's key achievements during the six-month period included the filing of a Biologics License Application with the United States Food and Drug Administration (FDA) to seek approval of RYONCIL. Another highlight was the continued growth in the company's revenues from sales of TEMCELL.
Mesoblast has also successfully established a US commercial team for the potential launch of its allogeneic cellular product candidate RYONCIL for SR-aGVHD in children.
Commenting on the results, Mesoblast Chief Executive Dr Silviu Itescu stated:
"We are very pleased with the substantial progress made by the Company as we seek US marketing approval for our lead product candidate RYONCIL™ (remestemcel-L) in the treatment of steroid-refractory acute graft versus host disease in children."
"The continued growth in revenues of TEMCELL in Japan is an important indicator for the potential of RYONCIL in the US market," he added.
