Mesoblast's US patents deal lifts shares
In a deal with US-based Osiris Therapeutic for an initial $US20 million in cash, along with further future payments, Mesoblast is to gain access to two products in their final stage of clinical trials which already hold approvals for sale in Canada and New Zealand, and with the potential to win clearance for launch in the key US market within two years.
"These are substantially derisked," Mesoblast chief executive Silviu Itescu said of the two advanced products, an agent for treating some Crohn's disease cases along with a treatment for bone marrow cases resulting from stem cell transplants.
Mesoblast shares closed up 4.7 per cent on Friday at $5.74.
Like Mesoblast, Osiris has been developing therapeutic products that use so-called mesenchymal stem cells that can help body tissue heal large wounds and repair cartilage and muscle tissue.
Osiris has been producing these stem cells in the US since 1999, and also has a joint venture in Japan.
The acquisition consolidates Mesoblast's position in the regenerative therapies sector, while providing additional growth options, Professor Itescu said.
The acquisition includes approved products in several countries and will "more than double our portfolio of granted patent families encompassing all mesenchymal lineage stem cells", he said. The products will bring forward Mesoblast's projected revenues and provide earlier launch opportunities for products, he said.
A year ago, Osiris regained full control of its prochymal stem cell technology, after terminating a venture with Genzyme potentially worth up to $US1 billion for the US rights alone.
"For $US100 million, Mesoblast is getting two advanced phase-three indications, which is a good deal," Bell Potter analyst Tanushree Jain said.
A key attraction is also the Japan joint venture.
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Mesoblast announced a deal to buy a suite of US patents from Osiris Therapeutics for up to US$100 million, including an initial US$20 million cash payment and further future payments, gaining access to two late‑stage products.
The acquisition covers two advanced products: an agent for treating certain Crohn’s disease cases and a therapy for bone marrow complications that arise from stem cell transplants. Both are in final clinical stages and already have approvals in Canada and New Zealand.
Mesoblast said the products have the potential to win US clearance and be launched in the key US market within about two years, according to the company’s statements in the article.
Shares in Mesoblast jumped to two‑month highs on the news, closing up 4.7% on Friday at $5.74, reflecting investor interest in the deal’s potential to bring forward revenues.
Mesoblast said the deal consolidates its position in regenerative therapies, more than doubles its portfolio of granted patent families covering mesenchymal lineage stem cells, and provides earlier launch opportunities and growth options.
Osiris has been developing and producing mesenchymal stem cell therapies in the US since 1999, has a joint venture in Japan, and recently regained full control of its prochymal stem cell technology after ending a venture with Genzyme.
Mesoblast CEO Silviu Itescu described the two advanced products as “substantially derisked,” and Bell Potter analyst Tanushree Jain said that paying US$100 million for two advanced phase‑three indications looks like a good deal.
Beyond patents, the acquisition brings approved products in several countries, accelerates projected revenues and launch timelines, and includes access to Osiris’s Japan joint venture—highlighted in the article as a key attraction.
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