Several ASX life science stocks have repurposed existing tests and treatments for diagnosing and treating COVID-19.Normally investors shun speculative plays in times of market uncertainties, but that’s not been the case with ASX-listed life science stocks across the drug, diagnostics and device sectors.
Naturally, the biotechs drawing a connection with fighting or detecting the virus – spurious or otherwise – have seen their valuations soar.
Not that investor interest is limited to the “COVID cluster”, with capital raisings in the sector supported across the board.
Diagnostic test market
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Stem cell treatments
WhileMesoblast (ASX: MSB) Genetic Signatures is a case of building incremental revenues, stem cell developer is on the cusp of company-moving announcements pertaining to several late-stage clinical trials and expected US approval of its therapy for graft versus host disease (a common affliction for transplant patients).
Naturally, most investors are focused on the COVID-19 trial which involves treating critical-care patients with its off the shelf therapy remestemcel-L (branded Ryoncil).
Most coronavirus victims die from acute respiratory distress syndrome (ARDS), an inflammatory condition caused by the immune system’s response to the virus.
Mesoblast aimed to enrol 300 patients across 30 US hospitals – a moving target given the disease epicentre is moving from region to region.
Nonetheless, the first patients were dosed in May, with an interim analysis due when at least 30% of the patients have been treated for 30 days.
In other words, investors should soon know whether the company is on the cusp of a major treatment breakthrough.
And if that’s not enough excitement, Mesoblast expects to announce results from two phase III studies: a 566-patient effort for chronic heart failure and a 404-patient trial for chronic lower back pain caused by disc degeneration.
DYOR & not financial advice!
