Ann: MSB Enters Into Cardiovascular Alliance For China With Tasly, page-146

Thanks for the summary and and quite pleased with the announcement. As usual there are some who are unduly critical in their comments and think that this announcement is short changing shareholders.
The word accretive is sometimes used loosely and tends to be misleading. Lets look at the benefit for each of the parties.

1. Tasly is a Chinese pharmaceutical company based in the city of Tianjin. It was established in 1994 and is notably producing traditional Chinese medicines. Tasly US is pioneering the most aggressive paradigm shift in modern medicine, fulfilling an unmet need to treat serious diseases with chemical-free products. The partnership with Mesoblast meets its objectives and this will add value to the company and enhance its profile worldwide. Being a billion dollar company, a partnership is a bonus especially since China having the biggest population in the world, the envisaged earnings from the sale of the two products will bring not only increased earnings but give them the reputation as a progressive company in China.
2. Mesoblast on the other hand is looking to establish itself in a country which is one of the world’s leading economies and a partnership with Tasly is a good stepping stone to marketing their products in this huge market. Bearing in mind that it is not easy to penetrate this market with little knowledge of the regulations prevalent in this country. The price of $1.86 per share for $20M worth of shares may not be reflective of the true worth of its value but at the end of the day shareholders will be rewarded in earnings and increased share value.

This is a commercial transaction which has to be beneficial to both parties and I would reckon that the synergy from this alliance will result in far greater rewards than anticipated.The technology from one leader in the field and the expertise of a leading pharmaceutical in China is a the right combination. With China's strong influence in the region it could open up other markets too.

The next to tackle is the Indian market which is also becoming an important economy and with its population close to that of China, it presents great potential with the right partnership.

What we now see is the pieces of the jigsaw falling into place.