Why has the Mesoblast share price boomed 25% in a month?

Is this why the ASX All Ords favourite has been having a blast?

Key points
  • The Mesoblast share price has lifted 25.5% over the last 30 days to trade at $1.16 today
  • In that time, the company released its quarterly update
  • It also revealed exciting news of its remestemcel-L phase 3 trial 

The Mesoblast Ltd (ASX: MSB) share price has been on a top run lately. It's launched 25% higher over the last 30 days.

Indeed, this time last month, shares in the clinical-stage biotechnology company were trading for 92 cents. Today, the Mesoblast share price is $1.16.

For comparison, the All Ordinaries Index (ASX: XAO) has risen 6% over the last month.

So, what's been bolstering the Mesoblast share price lately? Let's take a look.

Three scientists wearing white coats and blue gloves dance together in a lab.

Image source: Getty Images

What's been going right for the Mesoblast share price lately?

Mesoblast has had a good run recently. That's despite the market appearing disappointed by the only price-sensitive news from the company.

The healthcare company released its latest quarterly update and news of a key trial on 24 November. That same day, the Mesoblast share price slipped 1%.

Over the September quarter, Mesoblast burnt through US$14.3 million and brought in US$1.4 million of revenue. Though, there was more positive news released alongside its earnings.

Mesoblast also revealed the long-term survival results for its remestemcel-L phase 3 trial in children with steroid-refractory acute graft-versus-host disease (SR-aGVHD).

Overall survival at two years for children treated with the drug was 51% compared to between 25% and 38% in recent studies of children or adults treated with the best available therapy.

The company's chair Joseph Swedish said the results reaffirmed the potential significance of the drug as " a life-saving treatment for children with SR-aGVHD".

Mesoblast CEO Dr Silviu Itescu also commented:

These substantial and durable long-term survival outcomes seen in our Phase 3 trial with remestemcel-L are a cornerstone to our [Biologics License Application] resubmission.

That same day the company hosted its annual general meeting (AGM). There, Swedish reiterated the company is hoping to see regulators give remestemcel-L their tick of approval in the first half of 2023.

Mesoblast is also working to get its rexlemestrocel-L to market as a treatment for chronic low back pain associated with degenerative disc disease and for heart failure with reduced ejection fraction.

Interestingly, the biggest gain posted by the Mesoblast share price over the period was on a day of seeming silence. The stock soared 11.6% on Wednesday last week despite no word from the company.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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