2.06pFrom SMH today:Mesoblast up 10% ahead of more regulatory...

2.06p

From SMH today:

Mesoblast up 10% ahead of more regulatory news

By Emma Koehn

Mesoblast shares have bounced more than 10 per cent for the session so far as the stem cell treatment maker stares down another big week.

The US Food and Drug Administration will make a call by September 30 (Thursday Australian time) on whether it will grant approval to the stem cell treatment maker for its flagship product, remestemcel-L, for use against graft-versus-host disease in children.

Mesoblast shares are up more than 10 per cent today.

Mesoblast shares closed at $4.91 on Friday but were sitting at $5.41 at 1.45pm AEST.

The company's share price tends to go on a bit of a rollercoaster in the days before regulatory news is expected.

In the week before an FDA committee held its first meeting about this treatment earlier this year, shares rallied and then suddenly fell more than 30 per cent in a single day after some of the regulator's briefing documents suggested they were going to put Mesoblast under significant scrutiny.

This week's final FDA decision comes after more than a decade of trying to get remestemcel-L approved in the US market.

The product is the same one Mesoblast is also trialling for patients experiencing acute respiratory distress due to COVID-19. The company's trials COVID are still underway.