Mesoblast (MESO) AI Stock Analysis

• Market Cap: $2.37B
• Dividend Yield: N/A
• Average Volume (3M): 216.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 191.53%
• EPS Growth: 5.09%
• Country: US
• Employees: 73
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 128,296,720
• 10 Day Avg. Volume: 282,877
• 30 Day Avg. Volume: 216,515
• PEG Ratio: 2.44
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 76.48
• P/FCF Ratio: -25.95
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 78.62
• Enterprise Value/Gross Profit: -37.71
• Enterprise Value/Ebitda: -23.24
• 1Y Price Target: $35.00
• Price Target Upside: 98.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.11
• Revenue Forecast (FY): $109.88M

• Rating: 53 Neutral
• Price Target: $17.50 ▼(-0.85% Downside)

Mesoblast's overall stock score reflects a company with strong growth potential but significant financial challenges. The earnings call provided positive insights into market access and product launches, which are promising for future growth. However, financial performance and valuation concerns weigh down the score, with technical indicators suggesting caution due to overbought conditions.

Positive Factors

Revenue Growth

Strong revenue growth driven by Ryoncil's successful launch indicates robust market demand and enhances long-term financial prospects.

Regulatory Approval

FDA approval of Ryoncil enhances credibility and market access, providing a competitive edge in the regenerative medicine sector.

Insurance Coverage

Extensive insurance coverage for Ryoncil ensures broad patient access, supporting sustained revenue streams and market penetration.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate operational inefficiencies, which could hinder long-term financial stability and growth.

Increased Expenses

Rising operational expenses due to product launches may pressure margins, affecting the company's ability to achieve profitability.

Cash Flow Concerns

Negative cash flow highlights liquidity challenges, potentially limiting investment in growth initiatives and operational flexibility.

Mesoblast Business Overview & Revenue Model

Company Description

Mesoblast Limited, a biopharmaceutical company, develops and commercializes allogeneic cellular medicines in the United States, Australia, 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's products under the Phase III clinical trials include remestemcel-L for the treatment of steroid refractory acute graft versus host disease, as well as acute respiratory distress syndrome due to COVID-19 infection; Rexlemestrocel-L to treat advanced chronic heart failure; and MPC-06-ID for chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV for the treatment of biologic refractory rheumatoid arthritis diabetic nephropathy. 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. for the treatment of 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 Money

Mesoblast generates revenue primarily through the commercialization of its cellular therapies, which include its lead product candidates such as remestemcel-L and MPC-150-IM. The company earns money through product sales, licensing agreements, and partnerships with pharmaceutical companies for research and development. Significant partnerships, such as those with leading healthcare organizations, help expand its market reach and enhance its product pipeline, providing additional revenue opportunities through milestone payments and royalties on sales. Furthermore, Mesoblast may receive funding from grants and research initiatives aimed at advancing its innovative therapies.

Mesoblast Financial Statement Overview

Summary

Mesoblast's financial performance shows significant revenue growth but persistent profitability challenges. The income statement reveals substantial losses, and the balance sheet indicates moderate leverage with a negative return on equity. Cash flow issues persist despite some improvement in cash generation.

Income Statement

Mesoblast's income statement reveals significant challenges. Despite a notable revenue growth rate of 203.32% in the latest year, the company continues to face substantial losses, with a net profit margin of -5.94% and negative EBIT and EBITDA margins. This indicates ongoing operational inefficiencies and a struggle to achieve profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.21, suggesting manageable leverage levels. However, the return on equity is negative at -17.10%, reflecting the company's inability to generate profits from its equity base. The equity ratio stands at a healthy level, indicating a stable capital structure.

Cash Flow

Cash flow analysis highlights some concerns, with negative operating cash flow and free cash flow. However, the free cash flow to net income ratio is slightly above 1, indicating that the company is generating cash relative to its net losses. The free cash flow growth rate of 140.51% suggests some improvement in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.20M	17.20M	5.90M	7.50M	10.21M	7.46M
Gross Profit	-35.86M	12.07M	-35.17M	-47.42M	-53.36M	-78.28M
EBITDA	-58.18M	-73.66M	-56.08M	-58.55M	-76.57M	-84.65M
Net Income	-102.14M	-102.14M	-87.96M	-81.89M	-91.35M	-98.81M
Balance Sheet
Total Assets	784.68M	784.68M	669.15M	669.41M	662.14M	744.72M
Cash, Cash Equivalents and Short-Term Investments	161.16M	161.16M	62.56M	70.92M	60.03M	136.88M
Total Debt	128.16M	128.16M	118.92M	116.50M	106.91M	105.50M
Total Liabilities	187.24M	187.24M	188.80M	167.58M	165.10M	163.32M
Stockholders Equity	597.44M	597.44M	480.36M	501.84M	497.04M	581.40M
Cash Flow
Free Cash Flow	-48.69M	-50.68M	-48.79M	-63.58M	-66.01M	-108.33M
Operating Cash Flow	-47.99M	-49.95M	-48.46M	-63.27M	-65.78M	-106.68M
Investing Cash Flow	120.00K	120.00K	-97.00K	-194.00K	-232.00K	-1.65M
Financing Cash Flow	147.34M	147.34M	40.25M	74.50M	-9.87M	114.47M

Mesoblast Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MESO, the sentiment is Positive. The current price of 17.65 is above the 20-day moving average (MA) of 17.36, above the 50-day MA of 16.84, and above the 200-day MA of 14.10, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 61.67 is Neutral, neither overbought nor oversold. The STOCH value of 63.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MESO.

Mesoblast Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	81 Outperform	$2.23B	11.80	25.93%	―	21.13%	50.86%
MESO	53 Neutral	$2.37B	-21.99	-18.96%	―	191.53%	5.09%
ADPT	53 Neutral	$2.46B	-30.66	-37.18%	―	42.57%	60.03%
IMCR	53 Neutral	$1.81B	-61.45	-7.52%	―	27.51%	38.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SRPT	49 Neutral	$2.22B	-7.03	-21.37%	―	47.15%	-311.26%
COGT	37 Underperform	$6.00B	-15.99	-95.40%	―	―	4.32%

Mesoblast Corporate Events

Mesoblast’s AGM Results: All Resolutions Passed on November 25, 2025

On November 25, 2025, Mesoblast Limited announced the results of its Annual General Meeting, where all proposed resolutions were passed by a poll. The resolutions included the adoption of the remuneration report, election and re-election of directors, approval of options for long-term and short-term incentives, and the approval of convertible notes and warrants. These outcomes reflect strong shareholder support and are likely to positively impact the company’s strategic direction and stakeholder confidence.

Mesoblast Achieves FDA Approval for Ryoncil®

On November 25, 2025, Mesoblast Limited announced at its Annual General Meeting that it has achieved FDA approval for Ryoncil®, a mesenchymal stromal cell therapy for steroid-refractory acute graft-versus-host disease in children. This approval marks a significant milestone for Mesoblast, transitioning the company from development to commercialization with strong sales and reimbursement coverage. The success of Ryoncil® validates Mesoblast’s scientific platform and commercialization strategy, and the company is now expanding its use to additional indications and preparing for further FDA approvals for other products in its pipeline.

Mesoblast to Launch Pivotal Ryoncil® Trial for Severe aGvHD in Adults

On November 21, 2025, Mesoblast Limited announced a collaboration with the Blood and Marrow Transplant Clinical Trials Network (BMT CTN) to initiate a pivotal trial of Ryoncil® for adults with severe acute graft versus host disease (aGvHD) who are refractory to corticosteroids. This trial aims to extend the use of Ryoncil®, already FDA-approved for children, to adults, addressing a significant unmet need due to high mortality rates in patients failing existing therapies. The trial, set to begin enrollment in early 2026, represents a substantial market opportunity, potentially 3-4 times larger than the pediatric market.

Mesoblast Announces Director’s Share Acquisition and New Equity Issuance

On October 28, 2025, Mesoblast Limited announced a change in director’s interest and the issuance of new equity securities. William Burns, a director, acquired 120,000 ordinary shares through the exercise of options, increasing his total holdings. This move reflects Mesoblast’s ongoing efforts to strengthen its financial position and enhance shareholder value, potentially impacting its market standing and investor relations.

Mesoblast Reports Strong Revenue Growth with Ryoncil® Adoption

On October 20, 2025, Mesoblast Limited reported a significant increase in revenues for the quarter ended September 30, 2025, driven by the adoption of Ryoncil®, which saw a 69% increase in net sales. The assignment of a permanent J-Code by CMS on October 1, 2025, is expected to further enhance product adoption. Mesoblast has onboarded 40 transplant centers and expanded coverage to over 260 million US lives. The company plans a pivotal trial for Ryoncil® in adults with severe SR-aGvHD, aiming to extend its label to a larger population. Mesoblast’s financial position remains strong with $145 million in cash and new funding options.

Mesoblast’s U.S. Origin Designation Shields Products from Tariffs

On September 26, 2025, Mesoblast Limited announced that its allogeneic cell therapy products, including Ryoncil®, are designated as U.S. origin products and are not subject to tariffs on imported branded or patented pharmaceutical products. This designation aligns with U.S. FDA and Customs regulatory guidance, ensuring that Mesoblast’s products remain competitive in the market. The announcement underscores Mesoblast’s commitment to manufacturing its therapies from U.S. donors at U.S. sites, which is crucial for maintaining its market position and operational efficiency. This development is significant for stakeholders as it reinforces the company’s strategic positioning in the global market for cellular medicines.