Mesoblast (ASX:MSB) posts US$23.1M third-quarter loss; how are shares faring?

3 min read | June 01, 2022 11:14 AM AEST | By Ashish

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Mesoblast (ASX:MSB) posts US$23.1M third-quarter loss; how are shares faring? — Image source: © Wutzkoh | Megapixl.com

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Highlights

Mesoblast’s loss after tax for the third quarter FY2022 was US$21.3 million.

Total revenue rose 5% from the comparative quarter last year to US$2 million.

Despite the loss, Mesoblast’s share price was trading at AU$0.99, up 0.51% at 10:06 AM (AEST).

Mesoblast Ltd (ASX:MSB) on Wednesday announced a loss for the period ending 31 March 2022, while the total revenue increased from the comparative quarter last year. In FY2022, loss after tax for the third quarter FY2022 was US$21.3 million compared to US$26.5 million for the corresponding quarter of FY2021.

According to the latest update by Mesoblast, total revenue rose 5% from the comparative quarter last year to US$2 million. For the nine-month period ending 31 March 2022, the revenue surged 46% to US$8 million, compared to US$5.5 million in the comparative period last year.

Mesoblast develops allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions.

Despite the loss, Mesoblast’s share price was trading at AU$0.99, up 0.51% at 10:06 AM (AEST). The stock has fallen over 29% on a year-to-date (YTD) basis. In the past one year, the stock has plunged by over 48%. The share price is down nearly 6% in the past month. In the past five years, the stock has fallen over 51%. The stock’s 52-week high and low stand at AU$2.34 and 0.96, respectively.

“Cash on hand at the end of the quarter was $US76.8 million, up to an additional $US40 million is available to be drawn down from existing financing facilities subject to certain milestones,” Mesoblast also said.

The company’s net cash usage for operating activities in the given quarter fell 40% to US$15.5 million compared with US$25.8 million in the comparative quarter last year.

What happened in the second quarter

Revenue stood at US$3.5 million, including US$2.3 million from TEMCELL HS royalties on sales for SR-aGvHD in Japan.
Royalties were 7% higher (Y-O-Y).
A net cash usage of US$19.8 million in the quarter, a fall of 38% (Y-O-Y).
The refinancing of senior secured debt, a new US$90-million 5-year facility provided by Oaktree Capital Management
Cash on hand at the end of the quarter stood at US$94.8 million.

Meanwhile, Mesoblast’s share price was under pressure last month after it was hit by a class-action lawsuit. A shareholder alleged that the company misled the market about its Remestemcel-L product.

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