An Analysis of Mesoblast Stock: Top Broker Predicts 60% Upside
Mesoblast, a biotech company, has experienced a remarkable surge in its share price, rising 54% over the past year. Many investors might assume that the gains have reached their peak. However, according to top broker Bell Potter, there is still significant potential for further growth.
Bell Potter’s analysts have maintained their speculative buy rating and set a price target of $2.00 for Mesoblast’s shares. This suggests a potential upside of approximately 60% from the closing price of the previous trading session.
The broker emphasizes that the coming months are crucial for Mesoblast, as a key regulatory decision is imminent. The Prescription Drug User Fee Act (PDUFA) date for remestemcel-L, one of Mesoblast’s treatments, is only a few weeks away, scheduled for August 2, 2023. The anticipation of approval has already led to a rally in Mesoblast’s share price. The company resubmitted its Biological License Application (BLA) in January 2023, which was formally accepted for review in March. Additionally, in May, the Lonza manufacturing facility in Singapore underwent a pre-license inspection by four FDA inspectors, which reportedly went well without any regulatory violations.
The broker is encouraged by the trial data, which supports the likelihood of FDA approval. The four-year survival data for Remestemcel-L demonstrates a clean safety profile and a survival rate of 49%. Bell Potter believes this long-term survival data, coupled with overwhelming support from physicians, should be sufficient to obtain approval. They assert that the data package supporting approval is much stronger than it was in 2020.
While the approval of any new therapy is never guaranteed, Mesoblast’s prospects appear promising. Investors and industry observers should anticipate the upcoming regulatory update, expected in the coming weeks, to gain further insights into Mesoblast’s future.
By analyzing Mesoblast’s regulatory trajectory and trial data, Bell Potter’s optimistic outlook suggests potential for significant growth in Mesoblast’s stock. However, it is important to consider multiple perspectives and opinions in assessing the company’s future potential.
Disclaimer: The content of this article is for informational purposes only and should not be regarded as financial advice. Investment decisions should be made based on individual research and consultation with a qualified professional.
