MSB Trading 2020 - a new dawn, page-3550

https://www.nabtrade.com.au/investor/insights/latest-news/news/2020/09/the_seven_stockssev

THE SEVEN STOCKS SEVEN EXPERTS TIP
Here’s the question: “Given reporting season is over — what’s your best stock for the year ahead? And what are your reasons?

6. The expert: Julia Lee of Burman Invest

The stock: Mesoblast (MSB)

Analysts’ view: None

Reasons why:

• Biotech companies are notorious for consuming money. It is expensive to go through phase 1, phase 2, phase 3 trials and then look to regulatory approval in the US. Mesoblast has now completed or is in the final stages of phase 3 with many of its products. It is reaching that inflection point of moving from consuming huge amounts of capital to looking to generate revenue.
• Its first approval in the US is potentially Remestemcel-L to treat steroid refractory acute graft vs host in children. The Food & Drug Administrative is due to make a decision by 30 September 2020. If approved, it would be the first allogenic stem cell product to be approved in the US.
• At the moment, Remestemcel-L also has expanded access status for compassionate use Remestemcel-L in children with inflammatory syndrome associated with COVID-19.
• In addition, trials for Mesoblast’s products in heart failure and lower back pain are both in phase 3 trials.
• It’s a long road for a biotech product to hit commercialisation. For Mesoblast, many of its products have completed most of the hard work and there are a number of company changing catalysts over the next 6-12 months