Bell Potter recommendation

It continues to amaze me that MSB with it’s extraordinary suite of stem cells products at mature stages of development has a market capitalisation of only A$700m. It is a leading stem cell company in the world with an IP portfolio that dwarfs any other. In addition to its own pipeline, other companies working with mesenchymal stem cells will have no option but to seek to obtain a license from MSB if they wish to commercialise their product.
I have been a scientist and employee of big pharma for many decades and am more than aware that MSB represents a massive shift in how medicine will be practised. It’s true that MSB has not yet promoted and marketed itself, but the time is fast approaching when the share price will represent the value of its product line and IP.

Along that line, the following from Bell Potter ranks MSB as its top biotech recommendation for FY19.


BELL POTTER July 2018 - Analyst stock pick for FY19
Mesoblast (MSB)
Mesoblast is a biotechnology company commercialising the therapeutic use of mesenchymal lineage cells (MPCs and MSCs) – a kind of adult stem cell.
It is the leading allogeneic regenerative medicine player with
one of the most diversified pipelines and several products in late stage. We view the positive results to date from the company’s paediatric GvHD (Graft vs. Host Disease) Phase 3 trial as an important de-risking milestone for it which not only validates its technology platform and clinical design strategy, but also takes it closer to having
its first product approved in the US market.
MSB is currently focusing its partnering efforts on its Tier 1 assets and we expect late stage data read- outs, followed by potential partnering deals to act as re-rating catalysts for the stock over the next 6-12 months. Next Key catalysts: Day 180 safety and survival data from Phase 3 GvHD trial in 3QCY18 and Top-line results from Phase 2B end stage heart failure trial in 3QCY18.
Buy, speculative, Valuation $3.75/sh.