Mesoblast was trading at around $3.33/sh in 2010 right before...

Mesoblast was trading at around $3.33/sh in 2010 right before they announced their agreement with Cephalon and stock shot up.

Today they are back to trading at similar levels but with more than 4 years of progress, several advance stage trials, strategic agreements, more cash balance and few months away from getting their first commercial product to the market.

It seems that market is not assigning any value for the last 4 years of progress which seems unreal. Compare it to US listed biotechs, those in Phase III trials even with just one product are accorded much higher value by much more sophisticated investors.

Uncertainty regarding Teva's commitment to the heart failure trial was what started the downward spiral in share price. Teva has now openly backed the Mesoblast agreement, has started a phase III trial which is enrolling well and as per the company's last presentation first interim look will be reported in 1Q16.

With this uncertainty removed and the main crux of the bear analysts arguments at the time, just purely on the current levels at which the stock is trading, I would think the upside risk is more than the downside risk with potential 2-3 licensing deals which could materialise over the next 6-12 months...