Australia-based Mesoblast (ASX: MSB; Nasdaq: MESO) just raised $138 million from investors. The company positions itself as a leader in cellular medicines for inflammatory diseases, placed 43 million shares to existing new institutional investors at a price of A$3.20 per share. This amount equates to a 7% discount to both price at end of closing May 8, 2020 and the five-day volume weighted average price. The company will use a good deal of the capital to set up manufacturing of the company’s lead product remestemcel-L for the treatment of critically ill patients suffering with diseases caused by cytokine release syndromes associated with high mortality, especially COVID-19 acute respiratory distress syndrome (ARDS). The rest of the funds go towards working capital and general corporate purposes. This is an important fund raising as they have been traditionally under pressure for ongoing fund raising.
The company initiated a clinical trial after promising results were observed with remestemcel-L under emergency compassionate use in COVID-19 ARDS, where 9 of 12 (75%) ventilator-dependent patients were able to come off ventilators within a median of 10 days.
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