Mesoblast’s half-year report contains some classic lessons for investors in the high-risk biotech space, after its auditor PwC warned of material uncertainty over the $1.33 billion biotech’s ability to continue as a going concern.

It’s now in a race against time to find an investor willing to tip in more funds and prevent it breaching debt covenants with US lender Hercules, which require it to keep cash reserves equal to four months’ trailing operating and investing cash outflows.