Mesoblast extends loss in first half as R&D costs surge
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The news: Dual-listed biotech Mesoblast extended its loss in the first half to USD47.9 million ($75.9 million) as revenue lowered year over year and the warrant liability on its Ryoncil therapy increased.
The numbers: Mesoblast's first-half loss after tax stretched from $32.5 million in the prior corresponding period.
Revenue lowered from USD3.4 million to USD3.2 million. The company said that as a result of US Food and Drug Administration (FDA) approval for Ryoncil, and the following share price appreciation, its warrant remeasurement increased by USD16.4 million to USD12 million, compared to a gain of USD4.4 million in the prior-year period.
Elsewhere, research and development expenses rose from USD12.6 million to USD20.6 million, USD8.2 million attributed to share-based payments for short-term incentives.
The company's shares climbed 10.5% to $2.72 at market open.
The context: Mesoblast reiterated its aim to launch Ryoncil, a cell therapy product, in the US this quarter. It also said it expects to "substantially advance" its product pipeline towards FDA approvals over the next six to 12 months.
The source: ASX
