Mesoblast limited (ASX: MSB) has been one of the standout performers on the ASX over the past three months. The company's share price dropped as low as $1.02 on 23 March amid the economic fallout from the coronavirus pandemic.
Since then, however, the Mesoblast share price has really soared and is currently trading at $4.18. That's a massive 310% growth in the company's share price in just three months. This includes a 4.5% increase so far today.
Mesoblast has become a world leader in developing allogeneic, off-the-shelf, cellular medicines. The ASX listed biotech has successfully leveraged its proprietary cell therapy technology to establish a range of commercial products and late-stage product candidates.
So, what is behind this strong recent rally in the Mesoblast share price?
Helping win the fight against coronavirus
It's pretty likely that the recent rise of the Mesoblast share price is linked to some promising progress the company is making with its treatment for COVID-19 patients.
In early May, Mesoblast commenced Phase 2/3 trials in the United States of its remestemcel-L treatment. The trials encompassed patients with moderate to severe coronavirus symptoms who required ventilator support.
The trial achieved an 83% survival rate and reported that 75% of patients managed to come off ventilator support within a ten day period. The remestemcel-L product works by counteracting the inflammatory process in the lungs caused by COVID-19. These initial encouraging results were first revealed back in late April at a New York hospital.
Further encouraging results were revealed at the end of May. Phase 2 trial results concluded that remestemcel-L, given in four monthly intravenous doses, significantly improved the outcome for patients with inflammatory lung disease, such as that suffered by COVID-19 patients.
Strong financial performance
Mesoblast's recent financial performance has also been strong.
The company recorded an 113% increase in overall revenues to US$31.5 million for the first 9 months of FY 2020, compared to the prior corresponding period.
Mesoblast also recorded a 127% increase from milestone revenues involving strategic partnerships.
Where to now for the Mesoblast share price?
With the Mesoblast share price rising by over 300% in the last few months, only time will tell if it can continue this strong performance moving forward. Judging by today's price, the market is likely expecting further promising clinical trial results to come from this dual listed biotech.
