Mesoblast Ltd (ASX: MSB) shares are rocketing higher into the green in morning trade on Thursday.
At the time of writing, the shares have jumped around 15% higher and are changing hands at $2.17 apiece. Today's increase means the shares have now climbed roughly 20% over the past week, recouping some of the losses incurred throughout the year.
But there is still some way to go. The shares are still down around 22% year to date and roughly 14% lower than 12 months ago.
The clinical-stage ASX biotech company has slowed through 2026 so far, likely off the back of an increase in investor caution around clinical timelines and some profit-taking after a late-2024 share price rally.
But it looks like the company's latest quarterly activities report, posted to the ASX ahead of the market open this morning, has already created a sharp turnaround in confidence.
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What did Mesoblast report today?
The company revealed its fiscal earnings for the quarter ended 30th of September.
Highlights include an 86% improvement in net operational cash spend to US$2.1 million, compared to US$14.9 million in the same quarter last year.
Mesoblast also confirmed it had US$99 million in cash as of the 30th of September.
Mesoblast's commercial flagship product, Ryoncil, is clearly gaining traction. The company reported net revenue from Ryoncil reached US$28 million for the quarter, which is 44% higher than the same period last year.
Mesoblast notes that September saw the highest number of monthly new patients starting Ryoncil, following an expected seasonal slowdown in July and August.
It looks like Mesoblast's rapid growth, at a time when it has also reduced its spending and improved its cash position, has been very well received by investors this morning. Many have rushed to snap up the shares.
The results were also impressive from an operational perspective. Mesoblast completed treatment of all 350 patients enrolled in its final large-scale Phase 3 human trial of its rexlemestrocel-L product for chronic low back pain.
The company also had a positive meeting with the US Food and Drug Administration (FDA) about their filing approach for its rexlemestrocel-L product to assist with end-stage heart failure in patients with a left ventricular assist device (LVAD).
What do the experts think of Mesoblast shares?
I expect that analysts and brokers will revise their target prices for Mesoblast shares in the coming days, following its quarterly update this morning.
But at the time of writing, expert sentiment is overwhelmingly bullish.
TradingView data shows that all seven analysts have a strong buy rating on the shares. The average $4.33 target price implies a potential upside of around 99%, at the time of writing, even after today's rally.
Some are even more optimistic and think Mesoblast shares could jump around another 156% to $5.55 over the next 12 months.
