Mesoblast Limited (AU:MSB)
ASX:MSB
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Mesoblast Limited
(Sydney:MSB)
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Rating:52Neutral
Price Target:
AU$2.00
â–¼(-11.11% Downside)
Action:Reiterated
Date:03/26/26
The score is held back primarily by weak financial fundamentals (ongoing losses and negative operating cash flow) and bearish technicals, partially offset by a constructive earnings-call outlook featuring strong Ryoncil launch momentum, very high gross margins, reiterated revenue guidance, and near-term regulatory/clinical milestones. Valuation signals are not usable from the provided P/E and missing dividend yield, limiting valuation support.
Positive Factors
Commercial adoption and revenue growth
A successful commercial launch with meaningful H1 product revenue and a credible full-year guide indicates durable market demand, rapid center onboarding and tangible payer reimbursement progress. That establishes a structural revenue base and reference customers that support longer-term scale.
Negative Factors
Ongoing net losses and negative operating cash flow
Despite revenue progress, the company remains unprofitable with negative operating cash flow. Continued losses mean the business depends on external financing or continued high-margin product ramp to fund R&D, SG&A and regulatory work, a persistent constraint on financial durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial adoption and revenue growth
A successful commercial launch with meaningful H1 product revenue and a credible full-year guide indicates durable market demand, rapid center onboarding and tangible payer reimbursement progress. That establishes a structural revenue base and reference customers that support longer-term scale.
Read all positive factors
Mesoblast Limited (MSB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.53B
Dividend YieldN/A
Average Volume (3M)4.33M
Price to Earnings (P/E)―
Beta (1Y)1.61
Revenue Growth1069.25%
EPS Growth18.67%
CountryAU
Employees73
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.08
Shares Outstanding1,294,612,800
10 Day Avg. Volume4,518,407
30 Day Avg. Volume4,325,729
Financial Highlights & Ratios
PEG Ratio-27.18
Price to Book (P/B)2.09
Price to Sales (P/S)72.48
P/FCF Ratio-24.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.49Price Target Upside55.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.03
Revenue Forecast (FY)AU$123.42M
Mesoblast Limited Business Overview & Revenue Model
Company Description
Mesoblast Limited, an Australian enterprise established in Melbourne in 2004, is dedicated to developing innovative regenerative medicine products. The company's global reach extends to the United States, Singapore, the United Kingdom, and Switzer...
How the Company Makes Money
Mesoblast’s earnings are primarily tied to its cellular therapy pipeline and are generated through (1) collaboration and licensing arrangements and (2) other commercial/contract-related receipts connected to development and commercialization effor...
Mesoblast Limited Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call communicated strong commercial momentum from the Ryoncil launch (USD 49M H1 revenue), industry-leading gross margins (93%), broad payer coverage, rapid center onboarding and multiple near-term regulatory and clinical milestones (Revascor BLA next quarter; back pain enrollment completion and 2027 BLA). The company also strengthened its balance sheet with USD 130M cash and a USD 125M credit facility. Offsetting risks include a sharp increase in R&D and SG&A spending, reliance on Ryoncil for most revenues, ongoing manufacturing/CMC items ahead of filings, and near-term cash usage (USD 30.3M H1) with a tranche deadline in June 2026. Overall, the positive operational, clinical and financial developments materially outweigh the execution and expense risks.Positive Updates
Successful Ryoncil Launch and Revenue
Ryoncil launched April 2025 and generated net product revenues of USD 49.0M in H1 FY'26, driving total company revenues of USD 51.3M (Ryoncil ≈95.5% of revenues). Company projects full-year Ryoncil net revenues of USD 110M–120M for FY'26 (implying substantial H2 growth vs H1).
Negative Updates
Substantial Increase in R&D Spend
R&D expenses rose to USD 46.2M versus USD 5.1M reported prior-year (an increase of ~806%), though prior-year figures were skewed by a USD 23M inventory provision reversal (normalized prior-year R&D ≈USD 18.1M). Against the normalized base this represents a ~156% increase, driven by clinical programs (GVHD, back pain, LVAD) and BLA/manufacturing work.
Read all updates
Q2-2026 Updates
Positive
Negative
Successful Ryoncil Launch and Revenue
Ryoncil launched April 2025 and generated net product revenues of USD 49.0M in H1 FY'26, driving total company revenues of USD 51.3M (Ryoncil ≈95.5% of revenues). Company projects full-year Ryoncil net revenues of USD 110M–120M for FY'26 (implying substantial H2 growth vs H1).
Read all positive updates
Company Guidance
Management reiterated FY2026 guidance and laid out key metrics: H1 revenues were $51.3M with Ryoncil net product revenues of $49M and a 93% gross margin (gross margin excl. amortization ~$44.2M); direct selling costs $7.7M, R&D $46.2M, SG&A $28.5M, net loss $40.2M, and H1 operating cash use $30.3M. Cash was $130M at Dec 31 and Mesoblast has a $125M credit facility (first tranche $75M drawn, $50M available through June 2026); the subordinated royalty facility is expected to be fully repaid by mid‑2026 and operating cash use is expected to decline in H2. For Ryoncil they expect full‑year net revenues of $110–120M, target ~20% pediatric penetration by year‑end (based on a ~375‑patient base and a 40% peak‑share assumption), have onboarded 49 centers (30 with formulary listings; 13 using Optum Frontier), secured coverage for >280M lives with Medicaid in all states and J‑code J3402 effective Oct 1, and plan label expansion into adults (market ~3x pediatric). Pipeline milestones include rexlemestrocel‑L (404‑patient Phase III completed; confirmatory 300‑patient trial enrolling with enrollment expected by Mar/Apr and a 2027 data/BLA timeline) and Revascor (LVAD II: 159‑patient 2:1 RCT plus supportive 30‑patient study showing ~5‑fold reduction in major bleeding through 12 months and survival benefit) with a BLA filing for full approval planned next quarter.Mesoblast Limited Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
40
Negative
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.20M | 5.90M | 7.50M | 10.21M | 7.46M |
| Gross Profit | 12.07M | -35.17M | -47.42M | -53.36M | -78.28M |
| EBITDA | -73.66M | -56.08M | -58.55M | -76.57M | -84.65M |
| Net Income | -102.14M | -87.96M | -81.89M | -91.35M | -98.81M |
Balance Sheet | |||||
| Total Assets | 784.68M | 669.15M | 669.41M | 662.14M | 744.72M |
| Cash, Cash Equivalents and Short-Term Investments | 161.16M | 62.56M | 70.92M | 60.03M | 136.88M |
| Total Debt | 128.16M | 118.92M | 116.50M | 106.91M | 105.50M |
| Total Liabilities | 187.24M | 188.80M | 167.58M | 165.10M | 163.32M |
| Stockholders Equity | 597.44M | 480.36M | 501.84M | 497.04M | 581.40M |
Cash Flow | |||||
| Free Cash Flow | -50.68M | -48.79M | -63.58M | -66.01M | -108.33M |
| Operating Cash Flow | -49.95M | -48.46M | -63.27M | -65.78M | -106.68M |
| Investing Cash Flow | 120.00K | -97.00K | -194.00K | -232.00K | -1.65M |
| Financing Cash Flow | 147.34M | 40.25M | 74.50M | -9.87M | 114.47M |
Mesoblast Limited Technical Analysis
Negative
2.25
Price Trends
2.09
Negative
2.19
Negative
2.37
Negative
Market Momentum
-0.04
Positive
39.06
Neutral
14.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MSB, the sentiment is Negative. The current price of 2.25 is above the 20-day moving average (MA) of 2.04, above the 50-day MA of 2.09, and below the 200-day MA of 2.37, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 39.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:MSB.
Mesoblast Limited Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | AU$2.53B | -22.40 | -14.02% | ― | 1069.25% | 18.67% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | AU$63.30M | -7.23 | -179.37% | ― | ― | 24.59% | |
46 Neutral | AU$11.89M | -2.09 | -218.76% | ― | 76.94% | 42.95% | |
44 Neutral | AU$6.05M | -1.65 | -29.91% | ― | 82.28% | 13.33% | |
42 Neutral | AU$22.26M | -16.64 | -49.25% | ― | ― | 25.00% | |
41 Neutral | AU$216.44M | -15.31 | -44.80% | ― | 49.03% | -232.68% |
* Healthcare Sector Average
AU:MSB
Mesoblast Limited
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8.94%
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Mesoblast Limited Corporate Events
Mesoblast Highlights Growth Prospects and Risks in CEO Investor Presentation
Jun 2, 2026
Mesoblast used an ASX CEO Connect presentation to outline its expectations around sales growth, regulatory approvals, manufacturing scalability, and the commercial potential of its adult stem cell therapies. The company emphasized the importance o...
Mesoblast Ramps Up Ryoncil Sales, Advances Late-Stage Cell Therapy Pipeline
Apr 30, 2026
Mesoblast reported quarterly net revenues of US$30.3 million from Ryoncil, with gross sales of US$35.3 million, bringing first-year launch revenue close to US$100 million and cutting net operating cash spend to US$4.1 million, supported by US$122 ...
Mesoblast Hits Phase 3 Recruitment Milestone in Chronic Back Pain Push
Apr 29, 2026
Mesoblast has reached its patient recruitment target for a pivotal Phase 3 trial of rexlemestrocel-L in chronic low back pain caused by degenerative disc disease, a key step toward potential commercialization of the non-opioid, disease-modifying t...
Mesoblast Director Boosts Indirect Stake in Multimillion-Dollar Share Purchase
Apr 16, 2026
Mesoblast director Gregory George has increased his overall indirect stake in the company through on-market purchases of American Depositary Shares and ordinary shares made by related parties James and Grant George. The transactions, totaling abou...
Mesoblast Reports Lapse of 723,666 Options, Reducing Potential Dilution
Apr 16, 2026
Mesoblast Limited has informed the market that 723,666 MSBAI options, which were due to expire on various dates at various exercise prices, have lapsed. The lapse occurred because the conditions attached to these options were not met or became inc...
Mesoblast Issues 3.28 Million New Shares on Option Conversions
Apr 16, 2026
Mesoblast Limited has notified the market that 3,276,056 new ordinary fully paid shares have been issued following the exercise or conversion of previously unquoted options or other convertible securities. The issuance, effective March 31, 2026, m...
Mesoblast Seeks ASX Quotation for 3.05 Million New Shares
Apr 16, 2026
Mesoblast Limited has applied for quotation on the ASX of 3,050,000 ordinary fully paid shares, issued on March 25, 2026 under an employee incentive scheme. The new securities, which are to be quoted despite any transfer restrictions, modestly inc...
Mesoblast Issues 815,000 Unquoted Options Under Employee Incentive Scheme
Apr 16, 2026
Mesoblast Limited has notified the market that it has issued 815,000 unquoted options under its employee incentive scheme, with various exercise prices and expiry dates, recorded as taking effect on March 26, 2026. The move underscores the company...
Mesoblast Secures CAR Platform to Sharpen Targeting of Cell Therapies
Apr 14, 2026
Mesoblast has acquired an exclusive worldwide license to a patented chimeric antigen receptor technology platform designed to genetically engineer its mesenchymal stromal cell products for more precise targeting of inflamed tissue. The company obt...
Mesoblast Outlines R&D Outlook and Flags Risks Around Stem Cell Pipeline
Apr 8, 2026
Mesoblast used its RD Day presentation to outline expectations for future sales, revenue, product efficacy, intellectual property strength, regulatory timelines, and manufacturing scalability tied to its adult stem cell technologies. The company a...
Mesoblast Targets Revenue Expansion and Pipeline Upside at Inaugural R&D Day
Apr 8, 2026
Mesoblast used its inaugural RD Day in New York to spotlight its position in allogeneic cell therapy and outline plans to expand its product suite and global reach. The company’s pipeline is anchored by Ryoncil for pediatric SR-aGvHD, with o...
Mesoblast Wins FDA Nod for Registrational Ryoncil Trial in Duchenne Muscular Dystrophy
Apr 8, 2026
Mesoblast has received U.S. FDA clearance to proceed directly to a registrational clinical trial of its cell therapy Ryoncil in children with Duchenne muscular dystrophy, a genetic muscle‑wasting disease affecting about 15,000 individuals in...
Mesoblast Seeks ASX Quotation for 1.26 Million New Shares
Apr 8, 2026
Mesoblast Limited has applied to the ASX for quotation of 1,260,589 new fully paid ordinary shares, to be issued under the code MSB on April 7, 2026. The securities arise from previously announced transactions and will increase the company’s...
Mesoblast Plans New Share Issue to Raise Capital
Apr 7, 2026
Mesoblast Limited has notified the ASX of a proposed issue of 1,260,589 new ordinary fully paid shares. The company has lodged an Appendix 3B outlining that these securities will be issued as part of a placement or other type of capital raising, w...
Mesoblast CEO Granted Additional Options Following Shareholder Approval
Mar 20, 2026
Mesoblast has disclosed a change in the securities held by Chief Executive Dr Silviu Itescu, reporting the issue of 2,025,600 additional options following shareholder approval at the company’s 2025 annual general meeting. The transaction lea...
Mesoblast Issues 3.25 Million Unquoted Options Under Employee Incentive Scheme
Mar 20, 2026
Mesoblast Limited has notified the market of the issue of 3,245,600 unquoted options under its employee incentive scheme, with various exercise prices and expiry dates, effective March 16, 2026. The move expands the company’s pool of equity-...
Mesoblast Sets Inaugural R&D Day to Showcase Strategy, Ryoncil and Pipeline
Mar 17, 2026
Mesoblast will host its inaugural RD Day in New York on April 8, 2026, featuring its senior leadership and external experts in a live webcast for investors and stakeholders. The event aims to showcase corporate strategy, the commercialization traj...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.