Mesoblast Secures $125 Million Financing Option to Support Strategic Development
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Enhanced Financing Flexibility: Mesoblast has secured a financing option of up to $125 million, with an initial drawdown of $75 million, significantly lowering the company's cost of capital and enhancing financial flexibility for strategic initiatives.
- Debt Structure Optimization: The new facility features a fixed interest rate of 8%, a substantial reduction from existing debt, and requires only interest payments for the next five years, alleviating short-term financial pressure and enabling more strategic partnership opportunities.
- Asset Protection Measures: This financing does not encumber any of Mesoblast's material assets or intellectual property, ensuring greater operational space for future commercialization and strategic collaborations, thereby reinforcing its market position.
- Strengthened Shareholder Support: The financing arrangement provided by major shareholder Dr. Gregory George not only offers competitive terms but also grants him warrants to purchase approximately 323,000 ADSs, reflecting shareholder confidence in the company's future growth prospects.
MESO
$18.96+Infinity%1D
Analyst Views on MESO
Wall Street analysts forecast MESO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MESO is 29.50 USD with a low forecast of 24.00 USD and a high forecast of 35.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 19.500
Low
24.00
Averages
29.50
High
35.00
Current: 19.500
Low
24.00
Averages
29.50
High
35.00
About MESO
Mesoblast Limited is an Australia-based company. The Company is engaged in developing allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions. The Company has developing a range of late-stage product candidates, derived from its first and second generation proprietary mesenchymal lineage cell therapy technology platforms therapies for distinct indications. The Company’s Ryoncil (remestemcel-L-rknd) is an allogeneic bone marrow-derived mesenchymal stromal cell (MSC) therapy. Its other product candidate is Revascor (rexlemestrocel-L). Rexlemestrocel-L is second generation mesenchymal lineage precursor cell product platform and is in late-stage development for treatment of: chronic heart failure (chf) and chronic low back pain (clbp) due to degenerative disc disease. The two products have been commercialized in Japan and Europe by the Company's licensees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
