If you invested $8,000 in Mesoblast shares at the beginning of 2024, guess how much you'd have now!

Mesoblast shares have been soaring higher over the past six weeks. But why?

| More on:
Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.

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 made stockholders very happy this year.

How happy?

Well, on 2 January, shares in the S&P/ASX 300 Index (ASX: XKO) biotech company were trading for 31 cents before dipping as low as 26 cents in early February.

But by 25 March, Mesoblast shares had rebounded to 33 cents, up 6.5% for the year.

And soon after, the share price went ballistic.

Earlier on Friday afternoon, shares were up 3.5% at $1.11 apiece.

That's up an eye-watering 258% so far in 2024. (And 326% higher for investors fortunate enough to have bought the February dip.)

Sticking with the year-to-date gains, however, you could have bought 24,242 Mesoblast shares with an $8,000 investment on 2 January.

Today, those same shares would be worth – drum roll please – a whopping $26,909!

(And, since I know you're wondering, if you'd bought shares on 9 February for 26 cents apiece, that $8,000 investment would now be worth a staggering $34,153. In less than three months.)

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

Why are Mesoblast shares going gangbusters?

The big boost for Mesoblast shares kicked off on 26 March.

That came after the company released encouraging news from the United States Food and Drug Administration (FDA) concerning its remestemcel-L treatment.

Mesoblast is developing remestemcel-L to treat inflammatory diseases, including steroid-refractory acute graft versus host disease and biologic-resistant inflammatory bowel disease.

And on 26 March, ASX investors learned that, after examining additional clinical data from Mesoblast's phase 3 study, the FDA had determined the results were sufficient to support the resubmission of Mesoblast's proposed Biologics License Application (BLA) for remestemcel-L.

Mesoblast shares closed up 45.5% on the day, trading for 48 cents apiece.

The share price continued to march higher over the following trading days and rocketed another 71.2% on 2 April to 95 cents a share.

The ASX biotech stock has continued to trend higher since then, after the company revealed it intends to file that resubmission this quarter.

Quarterly update

As for the three months gone by, Mesoblast released its quarterly update for the three months to 31 March on Tuesday, 30 April.

With royalty receipts of only US$1.7 million, the company reported an operating cash outflow of US$11.6 million and a cash balance of US$76.4 million.

Mesoblast shares closed down 8.8% on the day, only to rebound by 11.1% on Wednesday 1 May, as investors refocused on the potential opportunities ahead.

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 Share Gainers

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to the races for ASX shares this Wednesday.

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

3 ASX All Ords shares going gangbusters on Wednesday

Investors are snapping up shares in these ASX All Ords shares today. But why?

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why BHP, Boss Energy, Domino's, and Renascor shares are racing higher

These ASX shares are having a good session on Wednesday. But why?

Read more »

Man smiling at a laptop because of a rising share price.
Materials Shares

Novonix share price rockets on new Volkswagen deal

There's some big ASX news out of Novonix today.

Read more »

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Guess which ASX gold stock just rocketed 92% on this 'outstanding' new discovery

Investor are snapping up the ASX gold stock as excitement over its gold and silver project surges.

Read more »

A young smiling couple out hiking enjoy a view from the top of the mountains.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough day for ASX investors this Tuesday.

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why Credit Corp, GUD, Race Oncology, and Spartan Resources shares are rising

These shares are having a decent session. But why?

Read more »

A woman has a big smile on her face as she drives her 4WD along the beach.
Share Gainers

Why this $1.5 billion ASX 200 stock just surged 10%

ASX 200 investors are sending the stock surging on Tuesday. But why?

Read more »