The Mesoblast Limited (ASX: MSB) share price is down around 2.5% after announcing its March 2019 update.

Mesoblast is a leader in providing allogeneic (off the shelf) cellular medicines. It owns a portfolio of late-stage product candidates with three product candidates in Phase 3 trials, being acute graft versus host disease, chronic heart failure and chronic low back pain due to degenerative disc disease. The company has facilities in Melbourne, New York, Singapore and Texas and is listed on the ASX and the NASDAQ.

What Did Mesoblast report?

For the nine months of FY19 the company reported lower revenue of US$14.7 million compared to US$15.6 million in the first nine months of FY18. However, Mesoblast did say that royalty income on sales of TEMCELL for aGVHD in Japan increased by 28%.

There was a 29% reduction in net operating cash outflows to US$38.7 million for the nine months to March 2019. The company had cash reserves of US$70.4 million at the end of March 2019, with an additional US$35 million potentially available under existing arrangements from Hercules Capital and NovaQuest Capital.

The after tax loss of US69.1 million in the nine months to March 2019 compares to an after tax loss of US$14.5 million in the first nine months of FY18.

Mesoblast revealed that it has invested an additional US$9.5 million for commercial manufacturing to support the potential launch of the aGVHD product.

The company also reminded investors that the United States Food and Drug Administration (FDA) has agreed to a rolling Biologics License Application (BLA) review of remestemcel-L for the treatment of steroid-refractory acute Graft Versus Host Disease in children. The first module has been lodged and the process will allow the company to address any substantial matters raised by the FDA.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.