Mesoblast jumped up as it entered into financing venture with NovaQuest

Mesoblast Limited (ASX: MSB) announced a US$50 million of financing from NovaQuest Capital Management, L.L.C. for continuous development and commercialization of its allogeneic product candidate remestemcel-L (MSC-100-IV) for children with steroid refractory acute Graft versus Host Disease (aGVHD). NovaQuest will provide support to its plans to bring remestemcel-L to market and this transaction will be underpinned by the strength of its GVHD Phase 3 clinical trial result. This trial is currently being managed in partnership with IQVIA, the clinical research organization that provides trial oversight and global development experience.

Further, it is expected that NovaQuest will provide a non-dilutive US$40 million, eight-year term loan and purchase US$10 million of Mesoblast common shares and this per share equity purchase price will represent a 5 per cent premium to the 10-day volume weighted average price at the time of execution of the equity purchase agreement. Consequently, Mesoblast will issue the shares and will draw the first tranche of the loan for the amount of US$30 million on closing and in addition US$10 million will be drawn on marketing approval of remestemcel-L by the United States Food and Drug Administration (FDA).

It was recorded that Mesoblast’s open-label Phase 3 trial enrolled 55 children with steroid-refractory aGVHD (aged between two months and 17 years) in 32 sites across the United States and 89 per cent of patients were suffering from the most severe form, grade C/D aGVHD. Moreover, NovaQuest has been providing novel solutions to the biopharmaceutical industry and helped in funding for the development and commercialization of strategic assets for two decades that reduced the cost of care and helped in meeting the unmet medical needs that improved the quality of life of patients. After this announcement, the stock price moved up by 3.72 per cent and was trading at $1.535 (as on 2 July 2018 1:25 PM AEST).


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