Mesoblast (ASX:MSB) share price surges on new results

The Mesoblast (ASX: MSB) share price is trading higher today as the company released a positive update on its drug trial results.

| More on:
A medical researcher works on a bichip, indicating share price movement in ASX tech companies

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Mesoblast limited (ASX: MSB) share price surged this morning after the biotech company announced positive drug trial results.

Mesoblast shares stormed almost 9% higher in early trading before retreating through the morning. At the time of writing, the Mesoblast share price is up 2.54% at $2.62.

Drug trial success

In today's release, the company detailed significant results for its phase 3 chronic lower back pain trials.

Mesoblast reported that a single injection of its drug rexlemestrocel-L may provide "safe, durable, and effective" therapy for patients with chronic inflammatory back pain due to degenerative disc disease. Furthermore, the results showed the treatment was long-lasting in combination with hyaluronic acid (HA) carrier, resulting in at least two years of pain reduction.

The 24-month trial also found that the drug has the most significant benefits when administered earlier in the disease process before the intervertebral disc has irreversible fibrosis.

Management comments

Commenting on the results, Mesoblast CEO Dr Silviu Itescu said:

The durable pain reduction for at least two years from a single administration indicates that rexlemestrocel-L has the potential to change the treatment paradigm for chronic low back pain due to inflammatory disc disease, a condition that affects as many as seven million patients across the United States and Europe, and to prevent or reduce opioid use and dependence.

Tackling chronic back pain

The company said chronic low back pain (CLBP) was a disabling condition affecting some 10-15% of the adult population. As such, Mesoblast estimates the addressable market for rexlemestrocel at approximately 30 million people in the United States and 40 million people across the European Union.

According to a World Health Organisation (WHO) study, back pain causes more disability than any other condition and inflicts substantial costs on healthcare systems worldwide. There are few treatments for patients suffering from CLBP, with most having to use opioids to manage their pain. Remarkably, despite 50% of opioid prescriptions being for CLBP, they have still not formally demonstrated efficacy in treating the disease.

According to the Centers for Disease Control and Prevention, more than 67,000 drug overdose deaths occurred in the United States in 2018, of which almost 47,000 (70%) were opioid-related.

The US Food and Drug Administration (FDA) has prioritised its focus on new therapeutics that target both pain reduction and opioid avoidance, a mould which fits Mesoblast's rexlemestrocel-L treatment.

About the Mesoblast share price

The Mesoblast share price has been impacted by announcements, including its recent COVID-19 trial update and short-sellers targeting the company.

As such, Mesoblast shares have fallen 7.64% over the past 12 months, trailing behind the flat return of the All Ordinaries Index (ASX: XAO).

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »