The Mesoblast Limited (ASX: MSB) share price has sunk more than 4% in today's trading session.
Shares in the biotechnology company are struggling today after Mesoblast released an announcement earlier today.
Let's take a look at what Mesoblast announced and why investors are jumping off.
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What's driving the Mesoblast share price lower
Earlier today, Mesoblast released respiratory function results from its COVID-19 trial.
The clinical results relate to Mesoblast's randomized controlled trial of its remestemcel-L product on ventilator dependent COVID-19 patients. These patients have also been diagnosed with acute respiratory distress syndrome (ARDS).
Mesoblast reported that remestemcel-L improved respiratory function in patients under 65 years old. In patients older than 65 years old, Mesoblast noted that remestemcel-L improved respiratory function at day 7.
Other secondary outcome results indicated that patients under 65 who received dexamethasone in addition to remestemcel-L reported improved respiratory function.
Mesoblast noted that the company has entered into a license and collaboration agreement with pharmaceutical giant Novartis. The agreement involved the development, manufacture, and commercialisation of remestemcel-L.
The company noted that the commercialisation of remestemcel-L will initially focus on the treatment of ARDS.
However, Mesoblast noted that the agreement remains subject to certain conditions, including analysis of results from the COVID-19 ARDS trial.
Although the announcement was marked 'non-sensitive', investors don't seem too impressed by the results. Clinical outcomes were also presented by Mesoblast Chief Executive Officer, Dr Silviu Itescu at the Pulmonary Disease Conference.
Snapshot of the Mesoblast share price
Mesoblast is a world leader in developing regenerative medicines for inflammatory diseases.
The company was a favourite among retail investors last year after it announced promising results for its remestemcel-L treatment for COVID-19.
After the initial euphoria which saw the Mesoblast share price hit a six-year peak in September last year, shares in the biotech have struggled. Shares in Mesoblast are trading more than 60% lower from their September highs.
As a result, Mesoblast has been one of the worst performers among healthcare companies on the S&P/ASX 200 Index (ASX: XJO) in FY21.
The Mesoblast share price has been plagued by various registration issues and has faced multiple class actions in the US.
At the time of writing, the Mesoblast share price is trading around 4% lower for the day, near its intra-day low of $1.89.
