analysis report, page-2

Morningstar's Take

MSB

• mce-anchorAnalyst

	Column 1	Column 2	Column 3
0	Price 04-07-2015	Fair Value Estimate	Uncertainty
1	3.28 AUD	7 AUD	Very High
2
3	Consider Buy	Consider Sell	Economic Moat
4	3.5 AUD	12.25 AUD	None
5
6	Stewardship Rating
7	Standard

	Column 1	Column 2
0
1	Bulls Say
2
3	•	First-mover advantage in a potentially large market.
4
5	•	Strong balance sheet.
6
7	•	Broad late-stage pipeline withfive phase III clinical trials underway.

	Column 1	Column 2
0
1	Bears Say
2
3	•	Mesoblast is yet to develop a product that has been commercialised.
4
5	•	A new class of therapy not yet fully understood or proven, so arguably there is a higher-than-average risk that harmful side effects could emerge.
6
7	•	Industrial scale manufacturing may present challenges.