Time is right for Mesoblast in fight against coronavirus

The stem cell developer is predicted to have a major role to play in the global life-and-death battle against the coronavirus.

Mesoblast CEO Silviu Itescu. His stem cell company is expected to play a major role in the battle against the coronavirus. Picture: Stuart McEvoy

International clinical studies highlighting the potential to use stem cell injections to treat coronavirus could become a boon for Mesoblast, the Anthony Pratt and Thorney Investment-backed biotech, according to analysts.

Three clinical studies in China are investigating the potential use of umbilical cord stem cells to treat patients infected with coronavirus, part of a string of trials happening worldwide on medical products and vaccines that may halt the epidemic.

Stockbroker Cantor Fitzgerald said in a note to clients that a study in China involving the transplantation of mesenchymal stem cells (MSC) had improved the outcome of patients with pneumonia developed from coronavirus contagion.

MSCs had previously been shown to notably improve the body’s immune system.

The study published in the Ageing and Disease journal involved the transplantation of MSC in seven patients with coronavirus pneumonia in Beijing earlier this year.

“The clinical outcomes, as well as changes of inflammatory and immune function levels and adverse effects of seven enrolled patients, were assessed for 14 days after MSC injection,’’ the broker wrote.

“The pulmonary function and symptoms of these seven patients were significantly improved two days after MSC transplantation.”

Mesoblast has one of the world’s largest stem cell production facilities in Singapore.

US researcher Daniel Bernstein noted Mesoblast owns a stem cell product named Remestemcel-L.

“Remestemcel-L has shown itself to be a safe treatment in all clinical trial reports and … should now be considered as a treatment for severe COVID-19,’’ the broker wrote.

“Large banks of validated mesenchymal stem cells are available now at several organisations, including Mesoblast Limited and (American biotech company) Athersys.”

The US company announced in January that a high dose of its stem cell product, MultiStem, had positive outcomes for patients with respiratory distress in a clinical trial by reducing mortality, dependence on ventilators and time spent in intensive care.

Mesoblast has previously stated it has more than 1000 patents for many potential MSC applications in Australia, the US and Europe.

The company’s chief executive, Silviu Itescu, has also claimed Mesoblast had the most mature cell therapy product pipeline and technology platform in the regenerative medicine industry.

He declined to comment yesterday on the Chinese study or Cantor Fitzgerald’s assertion that it highlighted “a new, upside opportunity for the company”.

Mesoblast shares almost doubled in value between late October and late January, passing the $3 mark for the first time in almost three years.

They have since fallen back and closed almost 6 per cent lower at $2.09 on Friday.

Mr Waislitz’s Thorney Investment Group owns 6 per cent of Mesoblast, while the stem cell developer is the only listed company stock owned by his brother in law, paper and packaging magnate Anthony Pratt.

Mesoblast last week reported a 43 per cent increase in quarterly revenues to $US19.2m, up from $US13.5m a year ago, and a 32 per cent reduction in loss after tax to $US30.1m.

The growth was underpinned by revenues from Mesoblast’s licensee for its steroid-refractory acute graft versus host disease (SR-aGVHD) product in Japan and a 36 per cent increase in revenues to $US15m from its strategic partnerships.