World news – AU – Mesoblast ASX: MSB and Novartis market remestemcel-L for ARDS – The Market Herald

Mesoblast (MSB) has entered into an exclusive license and cooperation agreement with Novartis to market Mesoblast’s remestemcel-L treatment.

Novartis is a multinational pharmaceutical company based in Switzerland. She has nearly 20 years of experience providing first class products that meet the unmet needs of people with respiratory issues..

The deal will see Novartis develop, manufacture and market a Mesoblast mesenchymal cell (MSC) product, remestemcel-L. Initially, companies will focus on developing treatment for acute respiratory distress syndrome (ARDS), including those associated with COVID-19..

“Our collaboration with Novartis will help ensure that remestemcel-L is available to many patients with acute respiratory distress syndrome, which is the leading cause of death in COVID-19 infection,” said Mesoblast CEO Dr. Silvio Itesco.

Novartis will earn $ 50 million (approximately AUD $ 68). 7 million) down payment, including $ 25 million (approximately AU $ 34). 3 million) in equity, to Mesoblast.

Despite current standards of care, which include intensive care unit treatment and mechanical ventilation, acute respiratory distress syndrome (ARDS) is an unmet area with a high mortality rate.

Currently, remestemcel-L is being studied in ARDS associated with COVID-19 in an ongoing Phase 3 study of 300 patients.. However, Novartis plans to initiate a trial in ARDS not associated with COVID-19 and will fully fund global clinical development for all causes of ARDS..

As a possible first treatment for ARDS, remestemcel-L will be tested to treat the condition and improve patient outcomes.

Other terms of the deal include the possibility of receiving Mesoblast $ 505 million (approximately A $ 693 million). 4 million) once the prior marketing milestones of ARDS have been achieved.

You may also receive additional payments of up to 750 million USD (approximately 1 AUD. 03 billion) if certain sales milestones and double-digit royalties are met.

The $ 1 billion company spent $ 19. 3 million (approx AUD $ 26). 5 million) – $ 6 USD. 9 million (about 9 AUD. 4 million) increase year on year. This was due to costs related to the COVID-19 ARDS clinical trial, payments to staff and consultants, and remestemcel-L’s previous business activities..

The experience also contributed significantly to the US $ 11 manufacturing costs. 9 million (about 16 AUD. 9 million) in the September quarter, compared to just $ 2. 7 million (around AUD $ 3. 7 million) in the first quarter of fiscal 2020.

Mesoblast also reports $ 24. 5 million (approximately AU $ 33. 6 million) loss after tax for $ 5. 5 million (about 7 AUD. 5 million) in the first quarter of fiscal 2020.

At the end of September, he had about $ 108. 1 million (about 148 AUD. 5 million) in the bank.

Mesoblast 13 shares acquired. 8 percent and it trades for $ 3. 72 at 11:29 AM EST.

Mesoblast, Novartis, ASX, and acute respiratory distress syndrome ASX: MSB