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Buy Rating for Mesoblast Driven by Promising Market Position and Strong Financial Backing

Buy Rating for Mesoblast Driven by Promising Market Position and Strong Financial Backing

Analyst Jason McCarthy from Maxim Group maintained a Buy rating on Mesoblast (MESOResearch Report) and keeping the price target at $30.00.

Jason McCarthy has given his Buy rating due to a combination of factors that highlight Mesoblast’s promising financial and market position. The company has recently announced the pricing for Ryoncil at approximately $1.55 million per treatment course, which is supported by health economic analyses suggesting a significant economic benefit. This positions Ryoncil as a strong market opportunity in pediatric steroid refractory acute graft vs. host disease (SR-aGvHD), with a total addressable market of around $600 million.
Additionally, Mesoblast has secured substantial funding, raising $161 million through a private placement, which should support the commercialization of Ryoncil in the US. The company is well-prepared for the upcoming launch, with a focused sales strategy targeting key centers and sufficient inventory to support sales. Furthermore, Mesoblast’s pipeline, including potential accelerated filing for Rexlemestrocel-L in Class IV heart failure, adds to the company’s valuation potential, reinforcing the Buy rating.

According to TipRanks, McCarthy is an analyst with an average return of -19.0% and a 24.65% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group, Mesoblast, and Alterity Therapeutics.

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