The Mesoblast Ltd (ASX: MSB) share price is in focus after the company reported a sharp increase in revenue to US$120.3 million for the 2026 financial year and a 44% reduction in net loss.
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What did Mesoblast report?
- Total revenue climbed to US$120.3 million, up from US$17.2 million in FY2025
- Gross profit reached US$103.6 million, with gross profit excluding amortisation at US$109.7 million
- Net loss reduced by 44% to US$57.5 million, down from US$102.1 million last year
- Net operating cash spend was US$43.8 million, improved from US$50.0 million in FY2025
- Period-end cash balance stood at US$103 million with a new US$125 million five-year credit facility
- US commercial launch of RYONCIL generated US$115.2 million in net revenue
What else do investors need to know?
Mesoblast successfully launched RYONCIL in the US for children with steroid-refractory acute graft versus host disease, securing broad adoption at major paediatric transplant centres and major payer coverage. The median time from patient identification to treatment dropped from 29 days at launch to 8 days.
The company is expanding RYONCIL's use to adults with severe SR-aGvHD, a market potentially three times larger than the paediatric segment, and progressing a registration trial as part of a second-line regimen with ruxolitinib. Mesoblast also obtained FDA clearance for a trial in children with Duchenne muscular dystrophy.
For its rexlemestrocel-L platform, Mesoblast completed treatment of 350 patients in a Phase 3 clinical trial for chronic low back pain, positioning the company to address a market worth over US$10 billion. Top-line results are expected in mid-2027.
What did Mesoblast management say?
Mesoblast's CEO, Dr. Silviu Itescu, commented:
We are very pleased to report a strong full year gross profit of US$104M for the fiscal year 2026. The financial result is a product of continued growth in RYONCIL market adoption and focus on disciplined capital allocation while investing in our high-value opportunities.
What's next for Mesoblast?
Looking ahead, Mesoblast plans to expand RYONCIL's label to adults with severe SR-aGvHD and further advance development for chronic low back pain using rexlemestrocel-L, with a pivotal data readout due next year. The company also aims to develop next-generation cell therapies through new CAR-MSC and oncolytic virus technologies, broadening its pipeline for inflammatory and immunological diseases.
With a solid cash balance and new funding in place, Mesoblast intends to continue investing in high-value clinical programs and commercial execution, maintaining its position as a sector innovator.
Mesoblast share price snapshot
The Mesoblast share price has underperformed the S&P/ASX 200 index (ASX: XJO) with a decline of around 5% over the past 12 months.
