The Mesoblast Ltd (ASX: MSB) share price is leaping higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) clinical-stage biotechnology company closed yesterday trading for $2.59. In morning trade on Tuesday, shares rocketed to $2.92 apiece, up 12.7%. After some likely profit-taking, shares are changing hands for $2.72 each at the time of writing, up 5.0%.
For some context, the ASX 200 is down 0.1% at this same time.
Here's what's grabbing investor interest today.
Mesoblast share price lifts off on sales growth
Investors are bidding up the Mesoblast share price following the release of the company's September quarter trading update.
The ASX 200 healthcare stock reported gross revenue of US$21.9 million on its Ryoncil sales for the three months to September 30. That's up 66% from the previous quarter, with similar gross to net adjustment.
The company highlighted that its Ryoncil product is the first mesenchymal stromal cell (MSC) product approved by the US Food and Drug Administration (FDA) for any indication. Ryoncil is also the only product approved for children under the age of 12 with steroid-refractory acute graft-versus-host disease.
Commenting on the revenue growth that looks to be boosting the Mesoblast share price today, CEO Silviu Itescu said, "We are very pleased with the adoption of Ryoncil to date and with reimbursement by both commercial and government payers."
Itescu added:
We expect adoption to be further enhanced following the permanent J-Code assigned by Centers for Medicare and Medicaid Services (CMS) which became active October 1.
What's been happening with the ASX 200 stock?
With a strong focus on US markets, the Mesoblast share price initially came under pressure in late September following news that US President Donald Trump was imposing 100% tariffs on pharmaceutical imports. Unless, that is, the company has a domestic manufacturing plant or is constructing one.
But the ASX 200 healthcare stock moved quickly to reassure investors that it was exempt to any such US tariffs.
In a 26 September release, the company reiterated that its "allogeneic cell therapy products are manufactured from US donors in the US and designated as US origin products not subject to tariffs on imported branded or patented pharmaceutical products".
The company added:
Mesoblast continues to ensure that all its products, whether for SR-aGvHD, chronic heart failure, chronic back pain, or other inflammatory indications, are manufactured from US donors at US sites.
With today's intraday boost factored in, the Mesoblast share price is up 80.1% since this time last year.
