I think once they have had the type A meeting they can relay this to the lender with a path forward: might mean more warrants to oaktree and other items but thats to be seen.
I for one would see yet another extension to the Oaktree deal that expires on 30th Sept as red flag as it would mean Mesoblast aren't even close to signing any partnership / royalty deals / licensing deals that have been touted for years ... the time has come in my opinion for the company to sign deals, not give free warrants etc away for additional funds (US $30M) that they haven't been able to secure to date with the current milestones in place no matter how many extensions they have sought .... simples
About the only positive with the Oaktree facility is with the interest rate hikes over the last 18 months, the Oaktree loan interest rate isn't that bad in comparison to commercial loans now on offer, however it is a useless facility with $35 million being drawn down / interest being paid upon it without the ability to ever use this amount ?
I see Mesoblast sitting in a very vulnerable position after the latest FDA rejection so I say get the CHF meeting with the FDA done and sign a CHF deal based on whatever the FDA guidance / pathway forward is or sign a CLBP deal / royalty agreement .... talk is cheap - management have had long enough and I have heard the same rhetoric that was touted in the recent CC for years about 'strategic partners' .... and this rhetoric has been touted by multiple Mesoblast management people, not just SI so collectively we should point the finger at all of them for no deals surfacing to date
And Slide 25 really summarizes and I won't go into a lot of detail, but summarizes the continuum of this disease and where we think that our mesenchymal stromal cell product can have significant benefit both in advanced heart failure as well as obviously those patients who are end stage and have an LVAD in place. This is the basis of the long-term program that we will be talking to with the agency and are also talking to with potential strategic partners.
Well, the cost containment strategies that have been enacted will allow us to have sufficient cash through to the end of first calendar quarter at least next year. And our strategy to bring in more cash is three parallel strategies that we're currently acting and working through strategic partnerships. In a number of areas remestemcel and rexlemestrocel, those strategic partnerships are active and ongoing in a number of areas.
Secondly, monetization of royalties, both real royalty monetizations as well as synthetic royalty monetizations, those activities are active and ongoing. And thirdly, there's always the accessibility to capital markets.
MSB Price at posting:
41.5¢ Sentiment: Hold Disclosure: Held
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