Mesoblast share price surges 11% following horror start to August

Mesoblast's gains today will certainly come as welcome news to bruised shareholders.

| More on:
A man in a business suit wearing boxing gloves slumps in the corner of a boxing ring representing the beaten-up Zip share price in recent times

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 Ltd (ASX: MSB) share price is taking off today.

This will certainly come as welcome news to those bruised shareholders who've held onto the stock during what's been an absolute horror start to the month.

In what looks set to mark the first day of gains for the stock since 19 July, shares in the ASX biotech company are up 11.4% in late morning trade, at 39 cents apiece.

As you can see in the chart above, calling this a horror month is no hyperbole. Even with today's intraday gains factored in the Mesoblast share price is down 66% in August. And investors who bought the stock near market close on 19 July will be nursing losses of 71%.

Ouch!

What's gone so wrong for the Mesoblast share price?

Mesoblast was among 2023's standout performers for the first seven months of the year. Shares were up an impressive 59% year to date when the closing bell rang on 19 July.

The stock then began to slip, and really got into trouble last Friday, 4 August.

That's when Mesoblast exited a trading halt with a very unwelcome announcement.

The company has been attempting to gain United States Food and Drug Administration (FDA) approval for its stem cell therapy, remestemcel-L, for a number of years.

On Friday, investors learned that the FDA was not ready to give the green light for the use of Mesoblast's treatment in the world's top economy, saying it needed more data.

Management said they would press ahead to gain that approval, but investors reacted by sending the Mesoblast share price down 56.9% on the day.

Motley Fool contributor Bernd Struben 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.

More on Healthcare Shares

Shot of a mature scientists working on a laptop in a lab.
Healthcare Shares

Telix Pharmaceuticals share price sinks on unexpected Nasdaq news

ASX 200 investors are bidding down the Telix Pharmaceuticals share price today. But why?

Read more »

Health workers shake hands and congratulate each other on good news.
Healthcare Shares

This ASX 200 healthcare stock is up 48% in a year, but one director is still buying!

A director of this ASX 200 healthcare company has just lifted his personal stake by 50%.

Read more »

A man and woman in an office look at a laptop and discuss investing, budget strategies or other financial concepts
Healthcare Shares

Why this broker just upgraded Telix shares to a buy rating

Bell Potter thinks a recent pullback has created a buying opportunity.

Read more »

A female scientist sits at her desk looking stressed out while working in an AnteoTech lab.
Healthcare Shares

Sigma share price dives 6% on Chemist Warehouse merger hurdle

The proposed merger faces ACCC concerns.

Read more »

A person wrapped in warm clothing with head, eyes and face covered by a hat, glasses and a scarf is coated in a layer of snow and ice. representing Strike Energy's trading halt today
Healthcare Shares

Why is the Telix Pharmaceuticals share price frozen today?

Telix Pharmaceuticals shares won’t be moving today.

Read more »

Shot of a mature scientists working on a laptop in a lab.
Healthcare Shares

3 ASX 300 healthcare stocks 'well positioned to outperform'

Wilsons thinks the healthcare sector could be about to outperform the broader market.

Read more »

A woman researcher holds a finger up in happiness as if making the 'number one' sign with a graphic of technological data and an orb emanating from her finger while fellow researchers work in the background.
Healthcare Shares

CSL shares can 'absolutely' head to $500: ASX expert

This expert reckons it's foolish to bet against CSL...

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

2 ASX biotech shares that could be the next Telix Pharmaceuticals

These ASX biotech shares could become the next Telix Pharmaceuticals. But how?

Read more »