Forum Topics MSB MSB Business Model/Strategy

Pinned straw:

Added one year ago

MSB's share price was cut in half on August 4th by the announcement that they needed to do more work in regards their FDA resubmission 05sb7mjzh4lq3w.pdf (asx.com.au)

Since then, they have been working toward approval of their graft vs host disease treatment but need more cash.

Trading halt today for a cap raise, rumoured to be at 30c, a steep discount to last traded price of 40.5c. This is because it is a massive capital raise and will likely anchor the share price to the raise price for a while to come.

They seemed so close to approval but new drug development is full of risks like this, even for good candidates.

Should be good buying around, or even under 30c. One to stick in the bottom drawer because it will re-rate strongly on favourable news.


Bear77
Added one year ago

Just be careful with Mesoblast - they are always working on something - and yet their track record of succesful commercialisation has been woeful. They are very good at building up investor hopes and raising fresh capital, and if they can eventually get some of their stuff onto the market and helping people that would be wonderful, but I have been an MSB shareholder in the past and my assesment when I exited the stock was that I would be better off making a donation to medical research than to prop up the salaries of the board and management at Mesoblast. One thing I have noticed is that if there is a hot biotech topic, MSB will have a finger in that pie - they never seem to miss an oppurtunity to jump on whatever is popular at that point in their industry, but soon enough they've moved on to something else. With zero benefit for shareholders or indeed anybody else outside of the company itself.

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...Unless you trade them, so buy at low points and sell at high points - they've certainly provided opportunities for that at times, but they haven't proven to be a great long-term hold - and they raise capital a LOT, which dilutes existing shareholders unless they get the chance to participate and decide to throw more money in.


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