Why is everyone talking about Mesoblast shares?

ASX biotech share Mesoblast has been grabbing plenty of investor attention recently.

| More on:
Doctor doing a telemedicine using laptop at a medical clinic

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

Mesoblast Ltd (ASX: MSB) shares have certainly been garnering plenty of attention of late.

That's come amid some astonishing recent daily share price moves for the ASX biotech company.

How astonishing?

I'm glad you asked!

On 26 March Mesoblast shares closed the day up an eye-popping 45.5% to close at 48 cents apiece, having reached intraday highs of 52 cents.

But ASX investors weren't done yet.

The next day the biotech stock gained 3.1% followed by a 12.1% gain on 28 March, to close out last month on a bang.

And if you think those are some big moves, then you must not have been watching the boards on Tuesday, 2 April, when the ASX re-opened following the four-day Easter holiday break.

Any guesses on how much Mesoblast shares gained on Tuesday?

I won't leave you hanging.

The biotech stock rocketed an astounding 71.2% on the first trading day of April, closing the day at 95 cents apiece, with intraday prices as high as 96 cents!

I told you the moves were astonishing.

Now Mesoblast has since given back some of those gains, with the stock closing Friday trading for 86.5 cents a share.

Still, it was only back on 21 March that shares were trading for 33 cents.

Here's what's been stoking ASX investor enthusiasm.

Mesoblast shares draw major attention

The initial 45.5% blast-off for Mesoblast shares on 26 March came after the company announced some promising communications with the US Food and Drug Administration (FDA).

The communications in question involved the company's remestemcel-L treatment. This medicine is being developed to treat inflammatory diseases in children and adults. That includes steroid-refractory acute graft versus host disease and biologic-resistant inflammatory bowel disease.

ASX investors were clearly enthused after learning the FDA had examined the additional clinical data from Mesoblast's phase 3 study. The FDA said the clinical results appeared to be sufficient to support the submission of the company's proposed Biologics License Application (BLA) remestemcel-L medicine to treat paediatric patients with steroid-refractory acute graft versus host disease.

CEO Silviu Itescu was clearly pleased with the development that was sending Mesoblast shares through the roof.

"We thank the agency for their collaborative approach," he said on the day.

Itescu added, "The responses and guidance from FDA are clear and provide us with a high level of confidence to refile our BLA for remestemcel-L in children with SR-aGVHD."

With the company saying it intends to file the resubmission in the next quarter, enthusiasm appears to have lifted off again following the Easter break, with investors piling back into Mesoblast shares on Tuesday.

Stay tuned!

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

Research, collaboration and doctors working digital tablet, analysis and discussion of innovation cancer treatment. Healthcare, teamwork and planning by experts sharing idea and strategy for surgery.
Healthcare Shares

Buy, hold or sell these 3 ASX 200 healthcare shares: Experts

These experts reveal their calls on CSL, Resmed and Sonic Healthcare shares today.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Share Gainers

Guess which ASX healthcare stock just exploded 63% on Federal budget funding news!

Investors are bidding up the ASX healthcare stock amid extra funding in the Federal budget.

Read more »

two doctors smile as they sit together at a desk looking at a patient's Xray.
Healthcare Shares

This ASX 200 healthcare stock just hit an all-time high: Is it too late to buy?

The valuation of this high-performer has soared.

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Healthcare Shares

1 magnificent ASX stock down 10% to buy and hold forever

Analysts say this high-quality stock is a great option for investors right now.

Read more »

ventilator mask
Healthcare Shares

3 reasons ResMed shares 'are just too cheap!'

This stock could still produce healthy gains, according to one fund manager.

Read more »

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

2 ASX healthcare shares rocking higher on big news

This 'spray-on skin' company and cancer-fighting biotech have exciting news for shareholders today.

Read more »

Scientists working in the laboratory and examining results.
Healthcare Shares

Insider still buying Mesoblast shares despite 230% rise this year: Should you buy?

This high-flying share is still reporting insider buying. Should you buy too?

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

Buy CSL shares for growing dividends and 'compelling long-term tailwinds'

CSL has increased both its interim and final dividend every year since 2021.

Read more »