The Mesoblast limited (ASX: MSB) share price is pushing higher on Thursday following the release of its quarterly update.
At the time of writing the shares of the global leader in allogeneic cellular medicines for inflammatory diseases are up 1.5% to $3.71.
What did Mesoblast announce?
During the fourth quarter Mesoblast reported cash receipts of US$2.1 million. These were from royalties it received from JCR Pharmaceuticals for the sales of TEMCELL in Japan for the treatment of acute Graft versus Host Disease (aGvHD).
This was not enough to offset its operating costs during the quarter, leading to a net cash usage of US$19.6 million for the three months ended 30 June 2020.
But thanks to its US$90 million (A$138 million) capital raising in May, Mesoblast finished the quarter in a very strong financial position. At the end of June the company had cash on hand of US$129.3 million (A$188.4 million).
It also notes that over the next 12 months it may have access to an additional US$67.5 million through existing financing facilities and strategic partnerships.
Remestemcel-L update.
In addition to its finances, the company provided investors with an update on its lead product candidate remestemcel-L.
This promising product has two major milestones on the horizon, which could make or break Mesoblast's financial year.
Mesoblast's Chief Executive, Dr Silviu Itescu, commented: "Remestemcel-L has two imminent major milestones, the interim analysis in the ongoing Phase 3 trial of remestemcel-L in COVID-19 patients with acute respiratory distress syndrome and the FDA advisory committee panel review of our submission for potential approval of RYONCIL (remestemcel-L) in children with steroid-refractory acute graft versus host disease."
"Together with the upcoming Phase 3 read-outs in chronic heart failure and back pain, these key milestones will take the Company into the most significant period in its history," he added.
According to the release, the independent Data Safety Monitoring Board (DSMB) has set a date for early September to complete the first interim analysis of the Phase 3 trial of remestemcel-L in ventilator-dependent COVID-19 patients with moderate to severe acute respiratory distress syndrome (ARDS).
The trial's first 90 patients will have completed 30 days of follow up during August, after which the DSMB will perform an interim analysis review of the safety and efficacy data.
At that point, the DSMB will inform Mesoblast on whether the trial should proceed as planned or should stop early.
Given that there are currently no approved treatments for COVID-19 ARDS, the primary cause of death in patients infected with COVID-19, this will no doubt be closely watched by investors.
