Is (ASX:MSB) Advancing In Biotech with FDA Orphan Drug Approval On ASX 300 and All Ordinaries?

May 15, 2025 01:08 PM AEST | By Team Kalkine Media
 Is (ASX:MSB) Advancing In Biotech with FDA Orphan Drug Approval On ASX 300 and All Ordinaries?
Image source: Shutterstock

Highlights:

  • Mesoblast receives FDA orphan drug designation for Ryoncil.

  • The designation grants marketing exclusivity in the United States.

  • Applicable to treatment for acute graft versus host disease in children.

Mesoblast Limited (ASX:MSB) operates within the biotechnology sector and is a constituent of both the ASX 300 and the All Ordinaries indices. This sector includes companies engaged in developing advanced medical therapies derived from biological systems. Mesoblast specializes in regenerative medicine, working on cellular-based treatments for inflammatory conditions and rare diseases. Its portfolio targets both adult and pediatric patient populations, positioning the company within a space focused on innovation in cellular and biologic treatments.

Orphan Drug Designation for Ryoncil

The United States Food and Drug Administration (FDA) has granted orphan drug designation to Ryoncil, a Mesoblast product intended for treating acute graft versus host disease (aGVHD) in pediatric patients.

The orphan drug designation is reserved for therapies that address rare diseases affecting a small patient base in the U.S. Ryoncil qualifies for this status due to its use in children who do not respond to standard steroid treatments following transplantation.

With this designation, Mesoblast is eligible for regulatory advantages under U.S. law, designed to support clinical development and eventual product approval.

Market Exclusivity and Development Incentives

The FDA orphan drug program grants specific benefits such as marketing exclusivity for an extended period upon approval, regulatory guidance, and exemptions from certain fees. These advantages aim to facilitate the development of therapies in underserved medical areas.

For Mesoblast, the exclusivity period applies strictly to the approved indication and does not cover unrelated applications. It serves as a mechanism to delay entry of competing therapies for the same condition, contingent on final FDA approval.

The program also provides access to regulatory assistance and can streamline interactions with U.S. health authorities throughout the development and registration process.

Therapeutic Area and Pediatric Application

Ryoncil is developed to address aGVHD, a serious condition that may occur after stem cell or bone marrow transplantation. This complication arises when donor immune cells attack the recipient's tissues. The therapy is intended for pediatric patients whose condition does not respond to corticosteroids.

Mesoblast uses a proprietary mesenchymal lineage cell platform as the foundation for Ryoncil and its wider therapeutic pipeline. These cells are characterized by their immunomodulatory properties and are explored for multiple applications in immune-mediated disorders.

Clinical documentation submitted for the designation process includes trial data from pediatric cohorts, focused on safety and therapeutic outcomes.

Corporate Communication and Regulatory Positioning

Mesoblast issued its formal communication through market channels in line with ASX disclosure requirements. The company highlighted the U.S. orphan designation as part of its ongoing interaction with international regulators, specifically the FDA.

This designation complements Mesoblast’s strategy in advancing cell-based biologic treatments within major healthcare markets. The FDA decision has been documented in the agency's regulatory listing and will be part of further updates involving Ryoncil’s review process. As part of its responsibilities as a publicly listed company on the ASX 300 and All Ordinaries, Mesoblast maintains transparent communication regarding regulatory milestones and development updates across its product portfolio.


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