Biotech Mesoblast seeks up to $150m (Adelaide Now)
BIOTECHNOLOGY company Mesoblast is raising up to $150 million, a person familiar with the matter says.
Bell Potter was leading the raising at $6.30 a share, representing a 2.2 per cent discount to the stock’s last-traded price, the person said.
Mesoblast is targeting a market estimated to be worth more than $US800m ($784m) in the US by developing a product to treat patients with degenerative spinal discs, which it says is less invasive than approved competing treatments.
Its product uses stem cells to grow bone and fuse vertebrae together, avoiding the current practice of surgically removing bone from a patient’s hip to treat such spinal conditions.
In January, Mesoblast said early US trials of its stem-cell treatment for back pain were successful, clearing the way for final testing.
Funds would be used towards the company’s phase-three clinical trial of its spinal fusion product, due to begin later this year, and for working capital through 2016, the person said.
Mesoblast requested trading in its shares be halted yesterday as it finalised a private placement of stock.
The Melbourne-based company had cash reserves of $178.6m at the end of December.