Business Description:
Mesoblast Limited (MSB) is a developer of biological therapies for the emerging field of regenerative medicine. The Company is commercialising patented adult stem cell-based products for large clinical indications such as cardiovascular and neurological conditions, diabetes, eye diseases, cancers of the blood, bone fractures, cartilage degeneration and musculoskeletal conditions.

Strategy Analysis:
MSB is developing a proprietary stem cell technology for the treatment of orthopaedic conditions such as bone fractures, degenerated knee cartilage and vertebral disc degeneration. Through an investment in and subsequent merger with Angioblast Systems, Inc. MSB is also developing stem cell treatments for cardiac and vascular diseases, and other degenerative conditions. MSB's strategy is to maximise shareholder value through both corporate partnerships and the rapid and successful completion of pre-clinical and clinical milestones to commercialise the technology. The firm already has TGA approval to manufacture and distribute patient-specific adult stem cell products to hospitals and physicians across Australia; this is the first culture-expanded adult stem cell product to receive manufacturing approval anywhere in the world. Mesoblast reported NPAT of $90.61m for the year ended 30 June 2011. Revenues from ordinary activities were $120.92m. This included a gain made of $86.74m on the revaluation of the previously held investment in Angioblast Systems, Inc., when the remaining shares of Angioblast were purchased and it became a wholly-owned subsidiary. Diluted EPS was 39.78 cents compared to (10.51) cents last year. The net operating cash inflow was $108.23m compared to an outflow of $9.66m in the pcp. No dividend was declared.