Mesoblast keeps gaining ground
Mesoblast saw its stock climb 12%, following up on gains made yesterday. The Australia-based company had said early Monday that its rexlemestrocel-L candidate treatment for the prevention of post-implantation mucosal bleeding in end-stage chronic heart failure patients requiring a left ventricular assist device had gotten the orphan drug designation from the U.S. Food and Drug Administration. That designation will potentially provide Mesoblast with additional incentives, including market exclusivity upon approval, fee exemptions, tax credits, and other assistance. Mesoblast expects to meet with the FDA to come up with an approval pathway to accelerate release, and investors are warming up to the idea that the drugmaker could be putting itself in position to take advantage of a lucrative niche market.
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