NEW YORK, March 6, 2026, 09:55 EST
Mesoblast Limited climbed roughly 3% early Friday in U.S. trade, as investors zeroed in on the cell-therapy company following last week’s first-ever annual sales outlook for Ryoncil. Shares hovered around $16.20 as of 9:40 a.m. ET.
Mesoblast is banking on a single greenlit product to validate its pipeline after years of R&D costs. The company’s Ryoncil, also known as remestemcel-L-rknd, just became the first mesenchymal stromal cell therapy to win FDA approval in the U.S. The treatment — derived from donor bone marrow — is now authorized for children as young as 2 months who aren’t helped by steroids for acute graft-versus-host disease.
Mesoblast’s first-half revenue surged to $51.3 million, up sharply from $3.2 million a year ago, with net Ryoncil sales providing $48.7 million of that gain. The company also trimmed its net loss to $40.2 million, compared with $47.9 million previously. As of Dec. 31, cash stood at $130 million, following the establishment of a $125 million, five-year credit line. There’s also a second tranche of $50 million available until June 30. CFO James O’Brien said the new facility should “strengthen our balance sheet.” SEC
Chief Executive Silviu Itescu described the half-year as an “important inflection point” and noted Ryoncil sales were already bringing in “positive cash flow.” Mesoblast is now forecasting net revenue from the product at $110 million to $120 million for fiscal 2026. GlobeNewswire
Chief Commercial Officer Marcelo Santoro described the launch as “exceptional” on the call with analysts. So far, 49 transplant centers have come on board. Of those, 30 centers have Ryoncil listed on their hospital formularies, while insurers accounting for over 280 million U.S. lives are now reimbursing the therapy. Investing.com
The rollout matters for Mesoblast as it pushes to expand Ryoncil’s reach past its pediatric base. According to management, the adult acute graft-versus-host disease market comes in at about three times larger than the pediatric segment. The company expects to kick off site initiation for the adult study once it gets the green light from the ethics board in March.
The company is moving forward with two additional late-stage assets. Its heart-failure cell therapy—targeting patients with left ventricular assist devices, or heart pumps—is on track for a U.S. submission next quarter. For its second Phase 3 trial in low back pain, executives told the earnings call that enrollment should wrap up by March or April. Data and a potential filing aren’t expected until 2027.
Incyte’s Jakafi stands as the main competitor in acute graft-versus-host disease. According to FDA documents, Jakafi is cleared for use in adults and kids aged 12 and up when steroids fail. Mesoblast, meanwhile, is pushing Ryoncil into trials with adults after securing a green light for younger children.
Still, there’s execution risk. Mesoblast expects lower cash burn in the second half, but its SEC filing flags ongoing heavy losses ahead. Broader adoption? That hinges on repeat business at major transplant centers, more physician buy-in, support from payers, and regulators not diverging on Mesoblast’s adult graft-versus-host disease, low back pain, and heart-failure projects.
