The Mesoblast Limited (ASX: MSB) share price is up more than 6% after announcing that it has won an award.
Mesoblast describes itself as a global leader in allogeneic cellular medicines for inflammatory diseases.
Remestemcel-L is an investigational therapy comprising culture-expanded mesenchymal stem cells derived from the bone marrow of an unrelated donor.
With the extensive imflammatory response in COVID-19 infections, remestemcel-L is also being evaluated in a randomized, controlled phase 3 trial in up to 300 ventilator-dependent adults with moderate to severe acute respiratory distress syndrome, which is the primary cause of mortality in COVID-19 patients. Mesoblast recently announced that the independent Data Safety Monitoring Board (DSMB) recommended continuation of the phase 3 trial.
Mesoblast’s award win
Mesoblast announced that its lead product candidate remestemcel-L has been selected as the winner of the Fierce Innovation Awards – Life Sciences Edition 2020 for Biotech Innovation.
About the the award
The awards highlight companies that demonstrate innovative solutions, technologies and services that have the potential to make the greatest impact for biotech and pharma companies.
The evaluation criteria are: effectiveness, technical innovation, competitive advantage, financial impact, and true innovation.
The awards program’s applications were reviewed by a panel of executives from major biotech and pharma companies including Astellas, Accenture, AstraZeneca, Angiocrine Bioscience, Biotech Research Group, NIHR Clinical Research Network, Medidata Solutions and PPD.
Mesoblast management comments
Mesoblast CEO Dr Silviu Itescu said: “This important award is recognition of Mesoblast’s leadership as an innovator in the cell therapy industry, and of the potential for remestemcel-L to profoundly impact the lives of children suffering with steroid-refractory acute graft versus host disease.”
The biotech business reminded investors that remestemcel-L remains under priority review by the US FDA. If approved, the product launch is expected in 2020. The FDA has set a Prescription Drug User Fee Act action date of 30 September 2020.
Mesoblast is a very interesting investment idea. It seems like the type of investment outcome where either its products will be approved and shares go up, or it’s not approved and shares go down.
It seems more likely to be approved than not, so it could do very well over the rest of the year, but that’s not how I like to invest. I prefer ASX growth shares with more predictable outcomes like Pushpay Holdings Ltd (ASX: PPH).