Mesoblast FY results reveal more red ink

Regenerative medicine specialists Mesoblast today reported a net loss of $14.8 million for the full year ended 30 June 2010, an increase on the previous year’s loss of $12.3 million.

The company, noted, however that it had finished the year with cash reserves of $32.5 million, up from $16.5 million for the previous corresponding period.

This meant that it was in a better position to commercialise its expanding portfolio of allogeneic stem cell products as well as to build on a number of key clinical and commercial milestones achieved over the period.

These included the company acquiring a license from the Therapeutic Goods Administration (TGA) to manufacture and distribute in Australia its first generation autologolous adult stem cell products.

“This represents the first culture expanded stem cell therapy that has received manufacturing approval anywhere in the world and is a strong validation of the company’s science, manufacturing, pre-clinical and clinical strategies and results,” said Mesoblast chairman Brian Jameison.

In addition, the company reported that several of its clinical stem cell programs in the US and Australia were progressing well. In particular it noted that a trial of its NeoFuse product on spinal patients at New York’s Hospital for special surgery had demonstrated safe and robust lumbar fusion.

Mesoblast also noted the achievements of its US associated company Angioblast, which recently completed a 60-patient recruitment for a clinical trial of its cardiac repair stem cell product. Angiobast is also developing a bone marrow stem cell product under an FDA orphan drug designation, recently demonstrating successful bone marrow transplantation in 25 patients. On the basis of this result Angioblast is expected to soon file an Investigational New Drug (IND) submission to the FDA to start a Phase III trial of bone marrow product, expected to commence this year.

Mesoblast announced this week that it was negotiating to buy Angioblast with a view to creating a more integrated and streamlined global stem cell business. The company’s shares today rose two cents to $1.90.