URGENT UPDATE: Mesoblast Ltd (ASX: MSB), a key player in the S&P/ASX 200 Index, is experiencing a dramatic surge in its share price, climbing 2.8% to $2.57 just today. Analysts are predicting a potential doubling of its value by 2026, driven by renewed confidence in its breakthrough therapy.
Latest developments reveal that Mesoblast is nearing a significant turning point. After struggling for years, the company has reported positive results from its lead treatment, remestemcel-L, which has garnered attention from the US Food and Drug Administration (FDA). In a pivotal announcement in January 2025, the FDA acknowledged the therapy’s effectiveness in reducing pain for patients suffering from chronic lower back pain linked to degenerative disc disease.
This breakthrough is monumental, especially as the FDA indicated that reductions in opioid use could be included on the product label, a crucial factor in today’s post-opioid crisis environment. Mesoblast disclosed that many patients have significantly reduced or completely stopped their opioid use following treatment.
Sales momentum is building rapidly. In its latest quarterly update, Mesoblast reported net revenue of US$30 million, fueled by increasing uptake of its Ryoncil therapy in the US. Total gross sales hit US$35 million, reflecting a steady rise in demand since FDA approval for treating children with steroid-refractory acute graft-versus-host disease. More treatment centers are opening, enhancing patient access, and early real-world data suggest survival outcomes are consistent with clinical trial results.
Despite the optimistic outlook, risks remain. Mesoblast has faced significant capital challenges during its lengthy development process, often depending on shareholder funding to navigate clinical trials and regulatory obstacles. Past setbacks with the FDA have tested investor patience. Even with potential approvals, the company must successfully scale sales and navigate a competitive and rapidly evolving cell-therapy market.
Nevertheless, brokers are optimistic. Analysts project an average 12-month price target of $4.16, indicating a potential upside of approximately 62% from current levels. Notably, all covering brokers rate Mesoblast as a strong buy, with targets ranging from $3.33 (30% upside) to an ambitious $5.05, suggesting a possible 97% gain for investors.
Bell Potter has also expressed confidence in Mesoblast’s position, assigning a buy rating and a price target of $4.45, which translates to an approximate 80% upside for investors over the next year.
As the healthcare sector awaits further updates from Mesoblast, all eyes are on the next steps in the company’s journey. Investors and analysts alike are eager to see how the company will capitalize on this momentum and what new developments will emerge in the coming months.
Stay tuned for more updates on Mesoblast and the evolving landscape of ASX healthcare shares. This story is developing, and the impact on investors could be substantial.
