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Mesoblast Limited (AU:MSB)
ASX:MSB
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Mesoblast Limited
(Sydney:MSB)
Select Model
Select Model
Rating:51Neutral
Price Target:
AU$2.00
▼(-13.04% Downside)
Mesoblast Limited's overall score reflects strong revenue growth and strategic product launches, but is weighed down by profitability and cash flow challenges. The technical indicators suggest neutral momentum, while the valuation is unattractive due to ongoing losses. The positive earnings call sentiment provides some optimism for future growth.
Mesoblast Limited (MSB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
$2.94B
Dividend YieldN/A
Average Volume (3M)4.12M
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth198.58%
EPS Growth3.97%
CountryAU
Employees73
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.07
Shares Outstanding1,279,967,200
10 Day Avg. Volume5,233,986
30 Day Avg. Volume4,120,588
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue362.38
Enterprise Value/Gross Profit-91.05
Enterprise Value/Ebitda-41.57
Forecast
1Y Price Target
$3.04Price Target Upside32.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Mesoblast Limited Business Overview & Revenue Model
Company DescriptionMesoblast Limited engages in the development of regenerative medicine products in Australia, the United States, Singapore, the United Kingdom, and Switzerland. The company offers products in the areas of cardiovascular, spine orthopedic disorder, oncology, hematology, and immune-mediated and inflammatory diseases. Its proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage cells. The company offers Remestemcel-L that is in Phase III clinical trials for the treatment of systemic inflammatory diseases, including steroid refractory acute graft versus host disease, acute respiratory distress syndrome, and biologic refractory inflammatory bowel disease; and Remestemcel-L, which is in Phase III clinical trials to treat chronic heart failure and chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV to treat biologic refractory rheumatoid arthritis diabetic nephropathy; and MPC-25-IC for the treatment or prevention of acute myocardial infarction. The company has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM for heart failure and MPC-25-IC for heart attacks in China; JCR Pharmaceuticals Co. Ltd. to treat wound healing in patients with epidermolysis bullosa; and Grünenthal to develops and commercializes cell therapy for the treatment of chronic low back pain. Mesoblast Limited was incorporated in 2004 and is headquartered in Melbourne, Australia.
How the Company Makes MoneyMesoblast Limited generates revenue through the development and commercialization of its proprietary cell-based therapies. The company earns money primarily through strategic partnerships and licensing agreements with pharmaceutical companies, which provide upfront payments, milestone payments, and royalties on product sales. Mesoblast also aims to generate revenue by advancing its product candidates through clinical trials, gaining regulatory approvals, and launching these therapies in global markets. Additionally, the company is involved in collaborations and research partnerships that may provide research funding and further financial support.
Mesoblast Limited Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong positive trajectory for Mesoblast, driven by the successful commercial launch of Ryoncil and significant revenue growth. Despite increased expenses and some regulatory challenges, the company shows robust market potential and financial health.Q4-2025 Updates
Positive Updates
Ryoncil Commercial Launch Success
Ryoncil, the first FDA-approved mesenchymal stromal cell therapy, launched with 32 transplant centers onboarded, and aims to reach 45 centers covering 80% of pediatric bone marrow transplants in the U.S. by the end of the quarter. Coverage includes over 250 million insured lives in the U.S.
Revenue Surge
Revenue from cell therapy products reached $17.2 million, up 191% from the prior year, driven by the successful launch of Ryoncil.
High Market Potential
Ryoncil's addressable market is approximately $1 billion, with potential label extensions for adults with acute GvHD and inflammatory bowel disease, adding opportunities of more than $5 billion.
Strong Financial Position
The company's cash on hand as of June 30, 2025, was $162 million.
Promising Trial Outcomes
Pivotal Phase III trial results for Ryoncil showed a 70% day 28 response rate with nearly 50% long-term survival in severe disease patients.
Negative Updates
Increased Operating Expenses
Selling, general, and admin expenses increased by $14.3 million to $39.3 million, related to the commercial team build and product launch.
Non-cash Losses
Recognized a $14.9 million loss in revaluation of contingent consideration and a $5 million warrant remeasurement loss due to FDA approval and share price changes.
Challenges with Adult GvHD Trial
The need for a pivotal trial for Ryoncil in adults with severe acute GvHD indicates ongoing regulatory and clinical challenges.
Company Guidance
During the Mesoblast financial results call for the fiscal year ended June 30, 2025, CEO Dr. Silviu Itescu highlighted significant growth and strategic developments. The company reported a 191% increase in revenue from cell therapy products, with total revenues reaching $17.2 million, largely driven by the successful commercial launch of Ryoncil, which generated $13.2 million in gross sales. Ryoncil, approved for pediatric steroid-refractory acute graft-versus-host disease, has been made available across 32 transplant centers in the U.S., aiming to cover 80% of pediatric bone marrow transplants by the end of the quarter. The company also noted expanding coverage, with over 250 million insured lives in the U.S., including Medicaid coverage in all states. Mesoblast's cash on hand as of June 30 was $162 million, and they maintain a gross margin of 90%. Looking forward, Mesoblast plans to expand Ryoncil's label to include adult acute GvHD and to initiate a pivotal study for inflammatory bowel disease. Additionally, their second-generation product, rexlemestrocel-L, is in a confirmatory Phase III trial for chronic low back pain, with the potential to address a market exceeding $10 billion annually.Mesoblast Limited Financial Statement Overview
Summary
Mesoblast Limited shows strong revenue growth but struggles with profitability and cash flow. The low debt-to-equity ratio is positive, but negative net income and return on equity highlight ongoing financial challenges.Income Statement
Mesoblast Limited has shown significant revenue growth of 203.3% in the latest year, which is a positive indicator. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin is positive, but the net income remains negative, indicating high operating costs or other expenses impacting the bottom line.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is relatively low at 0.21, suggesting a conservative approach to leverage. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is stable, but the negative ROE highlights profitability challenges.50
Neutral
Cash Flow
The free cash flow has grown significantly by 140.5%, which is a positive sign. However, the operating cash flow remains negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is covering net losses, but overall cash flow health is weak.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.67M | 17.20M | 5.90M | 7.50M | 10.21M | 7.46M |
| Gross Profit | -22.57M | 12.07M | -35.17M | -47.42M | -53.36M | -78.28M |
| EBITDA | -49.42M | -73.66M | -56.08M | -58.55M | -76.57M | -107.60M |
| Net Income | -103.35M | -102.14M | -87.96M | -81.89M | -91.35M | -98.81M |
Balance Sheet | ||||||
| Total Assets | 653.32M | 784.68M | 669.15M | 669.41M | 662.14M | 744.72M |
| Cash, Cash Equivalents and Short-Term Investments | 38.03M | 161.16M | 62.56M | 70.92M | 60.03M | 136.88M |
| Total Debt | 126.11M | 128.16M | 118.92M | 116.50M | 106.91M | 105.50M |
| Total Liabilities | 192.06M | 187.24M | 188.80M | 167.58M | 165.10M | 163.32M |
| Stockholders Equity | 461.26M | 597.44M | 480.36M | 501.84M | 497.04M | 581.40M |
Cash Flow | ||||||
| Free Cash Flow | -21.07M | -50.68M | -48.79M | -63.58M | -66.01M | -108.33M |
| Operating Cash Flow | -20.66M | -49.95M | -48.46M | -63.27M | -65.78M | -106.68M |
| Investing Cash Flow | 618.00K | 120.00K | -97.00K | -194.00K | -232.00K | -1.65M |
| Financing Cash Flow | 4.39M | 147.34M | 40.25M | 74.50M | -9.87M | 114.47M |
Mesoblast Limited Technical Analysis
Positive
2.30
Price Trends
2.26
Positive
1.99
Positive
2.17
Positive
Market Momentum
<0.01
Negative
52.73
Neutral
85.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MSB, the sentiment is Positive. The current price of 2.3 is above the 20-day moving average (MA) of 2.25, above the 50-day MA of 2.26, and above the 200-day MA of 2.17, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 85.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MSB.
Mesoblast Limited Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 2.48B | 16.82 | 0.00% | ― | 12.35% | 26.73% | |
77 Outperform | 593.46M | 15.56 | 15.02% | 0.42% | 7.76% | 1.55% | |
56 Neutral | 45.22M | -4.73 | 0.00% | ― | 0.00% | 10.78% | |
51 Neutral | $2.94B | ― | -18.95% | ― | 198.58% | 3.97% | |
50 Neutral | 359.63M | -5.81 | 0.00% | ― | 0.00% | -19.21% | |
45 Neutral | 285.71M | -32.31 | -58.80% | ― | 42.05% | -0.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
AU:MSB
Mesoblast Limited
2.30
1.32
135.90%
CLVLF
Clinuvel Pharmaceuticals
7.89
-2.23
-22.04%
NURPF
Neuren Pharmaceuticals Limited
13.59
4.25
45.50%
AU:OCC
Orthocell Ltd
1.16
0.70
152.17%
PRRUF
Immutep Ltd
0.19
-0.04
-17.39%
AU:PTX
Prescient Therapeutics Limited
0.04
0.00
0.00%
Mesoblast Limited Corporate Events
Mesoblast Limited Announces New Securities Placement
Sep 4, 2025
Mesoblast Limited has announced a proposed issue of 5,000,000 warrants as part of a new securities placement. This move is expected to enhance the company’s financial flexibility and support its ongoing projects in the biotechnology sector, potentially impacting its market position and stakeholder interests.
The most recent analyst rating on (AU:MSB) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Mesoblast Limited stock, see the AU:MSB Stock Forecast page.
Mesoblast Secures Option for $50 Million Convertible Notes to Bolster Growth
Sep 4, 2025
Mesoblast Limited announced it has entered into convertible note subscription agreements with SurgCenter principals and existing shareholders to issue up to US$50 million in unsecured convertible notes. This funding, subject to shareholder approval, will be used to repay or reduce existing loan amounts and support general working capital. The move is part of Mesoblast’s strategy to optimize its capital structure and support pipeline growth opportunities. The convertible notes have a maturity date of five years, with an option for investors to convert them into ordinary shares or ADRs at a premium price. This financial maneuver is expected to enhance Mesoblast’s operational flexibility and strengthen its market positioning in the cellular medicine industry.
The most recent analyst rating on (AU:MSB) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Mesoblast Limited stock, see the AU:MSB Stock Forecast page.
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.