Mesoblast shares plunge on steeper than expected full-year loss
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More news: Biotech Mesoblast has seen its share price fall after posting a larger than expected full-year net loss after tax amid costs associated with commercial team build and product launch as well as fair value remeasurements.
At 11:04am AEST, shares in Mesoblast had fallen 10.3% to $2.17.
Mesoblast posted a full-year net loss of USD102.1 million, which was larger than the market consensus estimate of USD78.2 million, according to Visible Alpha figures. The FY25 loss was also 16.1% larger than in FY24.
Fair value remeasurement of a non-cash revaluation of potential future third party payments resulted in a USD14.9 million loss while measurement of warrant liability resulted in a USD5.0 million loss amid a higher share price.
Costs classified as selling, general and administration came in 57.4% higher than the previous year at USD39.3 million. Cost of revenues related to sales came in at USD1.2 million while expenses related to non-cash amortisation of the intangible value of USD3.9 million from a prior asset acquisition.
Mesoblast revenue nearly triples on launch of flagship cell therapy
The news: Biotech company Mesoblast has posted a 191% year-on-year increase in revenue driven by the launch of its cell therapy Ryoncil in the final quarter of FY25.
The numbers: Mesoblast’s full-year revenue from cell therapy products came in at USD17.2 million ($26.4 million), ahead of the market consensus estimate of USD16.9 million, according to Visible Alpha figures.
The full-year net loss deepened from USD88.0 million in FY24 to USD102.1 million in FY25. The market consensus estimate was for a USD78.2 million loss.
Net operating cash spend came in 3% higher than the previous year at USD50 million, which includes the costs of "commercial team build and product launch", Mesoblast told the exchange.
Mesoblast also recognised a USD14.9 million loss from a "non-cash revaluation of potential future third party payments".
The context: In December, Ryoncil became the first mesenchymal stromal cell therapy — a type of stem cell therapy — to receive US Food and Drug Administration approval.
What they said: "We are working tirelessly to transform Mesoblast into a fast-paced commercial biotechnology company with demonstrable sales of our first commercial product Ryoncil," Mesoblast chief executive Silviu Itescu said.
"We intend to deliver additional approved indications for sales of Ryoncil and to launch a next-generation platform technology into potential blockbuster indications including heart failure and chronic low back pain."
The source: ASX
