Mesoblast shares dive on discounted placement
Make us a preferred source
Make us a preferred source on Google
More news: Mesoblast shares tanked on the ASX after the Melbourne-based biotech raised $260 million through a discounted placement to support the commercial launch of its Ryoncil therapy in the US.
Shares fell 7.1% to $2.61 by 11am AEDT. The private placement completed at $2.50 per share.
Mesoblast raises $260m for Ryoncil launch
The news: Dual-listed biotech Mesoblast has raised $260 million through a private placement to fund the commercial launch of its Ryoncil therapy in the US.
The numbers: The $2.50-per-share placement was primarily aimed at the company's existing major US, UK and Australian shareholders.
Mesoblast shares last traded at $2.81, having surged more than 900% over the last 12 months.
The context: Ryoncil is the first FDA-approved therapy for children aged two months and older with steroid-refractory acute graft versus host disease (SR-aGvHD), a life-threatening condition with high mortality rates that can arise from an allogeneic bone marrow transplant.
The treatment will be available in the US at transplant centres and other treating hospitals following its commercial launch.
Proceeds from the placement will also be used for clinical development, expansion of commercial manufacturing activities in preparation for product uptake and demand, and working capital and general corporate purposes.
The source: ASX announcement
