Mesoblast seeks partners to fund stem cell projects
CEO Silviu Itescu says Mesoblast is in active talks with potential partners. Picture: Aaron Francis
Stem-cell therapy company Mesoblast expects to finalise talks with prospective partners this year, to address future financing options as it burns through cash to develop its products.
Chief executive Silviu Itescu, speaking after the company reported its annual net loss had incerased because of higher spending, said Mesoblast was in active talks with potential partners for the development of its treatments.
“We have got a very deep product pipeline in phase two and phase three and that is exactly the time to be broadening our commercial partnerships,” he said.
“By having late stage assets that are moving towards completion, that provides an even playing field as we talk to our potential partners.”
The company is developing treatments for inflammatory diseases, including rheumatoid arthritis, diabetic kidney disease and Crohn’s disease.
“The quality of the data will drive the quality of the partnership and the quality of our data is top class at the moment,” said Mr Itescu, who expects discussions to conclude this year.
“We are not having any difficulty in engaging the partners ... the discussions are going well and the dynamics are good.”
The Melbourne-based company yesterday reported a $119.4 million net loss for the year to June, compared with an $81m loss a year earlier, as a weakening Australian dollar hit the bottom line.
The company said cash reserves fell to $144.1m as of June 30, from $196.4m a year ago, leaving it enough cash for about 12 months.
Shares in the company fell 2.69 per cent yesterday to $3.61.
Chief financial officer Paul Hodgkinson said the increased loss was largely due to expenses from continuing operations.
“Expenses have increased by $33m as we continue to invest in our late-stage pipeline,” he said.
Mr Hodgkinson said the depreciating Australian exchange rate had inflated costs by about $10.6m.
The company also announced yesterday that a recent deal with US regulators could mean that the phase-3 trial of its treatment for chronic heart failure might be completed up to a year earlier than expected.
Mesoblast said the US Food and Drug Administration had agreed to possibly stop the trial early if overwhelming efficacy was shown. Mr Itescu said the decision had clearly defined the path towards product approval.
“The quality of the data will drive the quality of the partnership and the quality of our data is top class at the moment,” said Mr Itescu, who expects discussions to conclude this year.
“We are not having any difficulty in engaging the partners ... the discussions are going well and the dynamics are good.”
The Melbourne-based company yesterday reported a $119.4 million net loss for the year to June, compared with an $81m loss a year earlier, as a weakening Australian dollar hit the bottom line.
The company said cash reserves fell to $144.1m as of June 30, from $196.4m a year ago, leaving it enough cash for about 12 months.
Shares in the company fell 2.69 per cent yesterday to $3.61.
Chief financial officer Paul Hodgkinson said the increased loss was largely due to expenses from continuing operations.
“Expenses have increased by $33m as we continue to invest in our late-stage pipeline,” he said.
Mr Hodgkinson said the depreciating Australian exchange rate had inflated costs by about $10.6m.
The company also announced yesterday that a recent deal with US regulators could mean that the phase-3 trial of its treatment for chronic heart failure might be completed up to a year earlier than expected.
Mesoblast said the US Food and Drug Administration had agreed to possibly stop the trial early if overwhelming efficacy was shown. Mr Itescu said the decision had clearly defined the path towards product approval.
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