Mesoblast Limited (MSB)

Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today » it's FREE! Already a member? Login now!

General Information
Company Name: Mesoblast Limited
Stock Code: MSB
GICS Sub-Industry: Biotechnology
Market Cap ($M): 1,319
Equiv. Shares (M): 322

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 4.100 $ 4.140 $ 4.140 $ 4.050 $ 4.220 578,307 $ -0.120  -2.844 %

Current Broker Consensus Recommendation more
Recommendation: Buy (1.5)
Recommendation Date: 27th Nov 2014
Brokers Surveyed: 2

Company Overview

Business Description:
Mesoblast Limited (MSB) is an Australian company engaging in the development of biologic products for the broad field of regenerative medicine. The key focus is on research and development of adult Mesenchymal Precursor Cells (MPCs), Mesenchymal Stem Cells (MSCs), Dental Pulp cells and Adipose cells. Its intellectual property covers a range of applications in key markets including the United States, Europe, Japan and China.

Strategy Analysis:
MSB is developing a proprietary stem cell technology for the treatment of orthopaedic conditions such as bone fractures, degenerated knee cartilage and vertebral disc degeneration. Through an investment in and subsequent merger with Angioblast Systems, Inc. MSB is also developing stem cell treatments for cardiac and vascular diseases, and other degenerative conditions. MSB's strategy is to maximise shareholder value through both corporate partnerships and the rapid and successful completion of pre-clinical and clinical milestones to commercialise the technology. The firm already has TGA approval to manufacture and distribute patient-specific adult stem cell products to hospitals and physicians across Australia; this is the first culture-expanded adult stem cell product to receive manufacturing approval anywhere in the world. Mesoblast reported a net loss of $27.79m for the half-year ended 31 December 2012 (31 Dec 2011: $17.6m). The increased loss was driven by a reduction in revenue from continuing operations and other income of $4.3m and an increase in expenses from continuing operations of $5.9m. Revenues from ordinary activities were $14.73m, down 22% from the same period last year. Diluted EPS was (9.69) cents compared to (15.52) cents last year. The net operating cash outflow was $30.52m compared to an outflow of $36.89m in the pcp. No dividend was declared. In the second half of the financial year, the Company expects to continue to report on clinical outcomes from a number of Phase 2 programs and to initiate new programs in line with the overall corporate strategy.

Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F -101.8 -29.7 -3.7 -13.8 0.0 0.0 0.0
2015  F -101.6 -30.8 -9.4 -13.3 0.0 0.0 0.0
2014  A -108.5 -34.0 14.7 -16.3 0.0 0.0 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Bionomics (BNO) $198 M -- 6.3117 0.3108 61.6883 8.4369 6.4363 0.00 0.00 0.00
CSL (CSL) $39,437 M 0.0899 0.2412 0.0806 29.0615 23.4149 21.6683 1.44 1.73 1.93
Mesoblast (MSB) $1,358 M -- -- -- -- -- -- 0.00 0.00 0.00
Starpharma (SPL) $158 M -- -- -0.9147 -- 10.5544 123.7500 0.00 0.00 0.00
Sirtex Medical (SRX) $1,526 M 0.2906 0.5153 0.3535 65.3753 43.1448 31.8772 0.52 0.64 1.03

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
MSB -- -- 2.27 -- 79.8
Market 0.91 15.2 1.18 1.87 1.52
Sector 0.81 17.3 2.55 1.23 7.26

Name Position Start Date
Professor Silviu Itescu Chief Executive Officer,Executive Director 08 June 2004
Mr Brian Jamieson Non-Executive Chairman 22 November 2007
Mr Michael Robert Spooner Non-Executive Director 29 September 2004
Mr Donal O'Dwyer Non-Executive Director 29 September 2004
Dr Ben-Zion Weiner Non-Executive Director 09 May 2012
Dr Eric A Rose Non-Executive Director 15 April 2013
Mr William M Burns Non-Executive Director 06 March 2014

Name Position
Charlie Harrison Company Secretary

Substantial Shareholders
Holding Name
18,029,407 (5.56%) Thorney Holdings Pty Ltd and Thorney Pty Ltd and associated entities
68,244,642 (21.56%) Silviu Itescu
21,770,000 (6.80%) Capital Research Global Investors
36,782,943 (11.40%) M&G Investment Funds
55,785,806 (17.62%) Cephalon International Holdings Inc

Calendar of Events
Date Event
22 October 2015 Report (Annual)
25 August 2015 Report (Prelim)
25 February 2015 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at


Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Debt Relief

An educational booklet to help you take control of your debts and look to get back on track.

More details...


Australian Share Market - Close Up

CMC Markets 11/11/2014 | The Australian share market is in a decision zone - and trading from here may set the direction for the rest of the year.

Prices slashed - everything must go!

Nick Swales, Regional Director, Newcastle Office, Rathbones 27/10/2014 | “If you want to have a better performance than the crowd, you must do things differently from the crowd.” Sir John Templeton.

Aussie share market bulls now have company

Ric Spooner (Chief Market Analyst, CMC Markets) 20/10/2014 | Today, Australian investors will not have to go it alone buying stocks as they did for much of last week. Bargain hunters this morning will be supported by the morale boosting encouragement of a 3% turnaround in the German Dax and a 264 point rally in the Dow Jones.

The Importance of Ignoring the Noise of the Market

Carl Richards, director of investor education at the BAM Alliance 17/10/2014 | “As odd as it may sound, the sooner you start treating your investments like you treat life, the happier you’ll be with the outcome.”

You only dance twice

William H. Gross, Janus Capital Group 16/10/2014 | “Financial markets are artificially priced. In the bond market, there is nothing normal about a three year German Bund yielding “minus” 10 basis points.”

The Big Picture - Australia 200 Index

CMC Markets 8/10/2014 | Share market indices around the globe are breaking down. While analysts cast around for reasons, it’s clear that a time factor is in play. Simply put, many investors “feel” a correction is overdue. How low could it go?


Sponsored Links