What Does the Future Hold for the Mesoblast Share Price (ASX:MSB)

What Does the Future Hold for the Mesoblast Share Price (ASX:MSB)

Do you want to know who the fastest movers of 2020 have been?

Well, they mostly have one thing in common…

That’s a potential solution to the COVID-19 pandemic.

And today, you can add one more stock to that list.

It’s Mesoblast Ltd [ASX:MSB].

Throughout the year, MSB has received FDA approval in the US for an ‘Investigational New Drug’ (IND) for COVID-19.

And has also received the nod for its oncologic therapy.

We’ll take a look at what that means shortly. Because no doubt, you may be wondering if now’s a good time to buy MSB.

Who is Mesoblast?

MSB is a company that researches, develops and markets mesenchymal lineage stem cell technology.

Sounds complicated, huh?

Don’t worry, here’s what you need to know…

These cells are rare and found in blood vessels. They respond to signals associated with tissue damage.

The cell’s job is to promote tissue repair and modulate immune responses.

The products Mesoblast promote help people suffering from a range of health conditions.

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Take a look at this list…

Cardiovascular diseases, spine orthopaedic disorders, oncology and haematology, immune-mediated, and inflammatory diseases.

Anyway, that’s the company on a broad level.

Back in April, FDA approval sent the MSB share price soaring 28% in one day.

At the time, Mesoblast’s Chief Medical Officer Dr Fred Grossman said:

The FDA clearance provides a pathway in the United States for use of remestemcel-L in patients with COVID-19 ARDS, where the prognosis is very dismal, under both expanded access compassionate use and in a planned randomized controlled trial[.]

Fast-forward a few months and the FDA has now voted overwhelmingly in favour that the available data support the efficacy of remestemcel-L.

That news sent MSB shares up nearly 40% in one day.

Things could be looking good for MSB.

So, is it a buy?

Let the chart do the talking

Below you can see the daily chart of MSB:

ASX MSB Share Price Chart

Source: Tradingview

The weighted moving average lines point to some serious upwards momentum.

Momentum that looks like it could continue.

Earlier this month MSB announced it has won the Fierce Innovation Awards — Life Sciences Edition 2020 for Biotech Innovation.

Mesoblast CEO Dr Silviu Itescu stated:

This important award is recognition of Mesoblast’s leadership as an innovator in the cell therapy industry, and of the potential for remestemcel-L to profoundly impact the lives of children suffering with steroid-refractory acute graft versus host disease.

Meaning that not only does the FDA see the life changing potential MSB’s product has, but so do their peers.

If you found this analysis insightful, our publication The Daily Reckoning Australia is a fantastic place to start your investment journey. We discuss the big trends driving the most innovative stocks on the ASX. Learn all about it here.


Lachlann Tierney

For The Daily Reckoning Australia