Mesoblast chief executive Silviu Itescu says new strategic partner Celgene has a "strong franchise and sales and marketing. Photo: Josh Robenstone
Mesoblast chief executive Silviu Itescu says a $58.5 million investment from pharmaceutical giant Celgene gives the company a strong potential route to market as the stem cell therapy developernears its first sales.
The American giant Celgene, which had revenue of $US7.7 billion ($10 billion) from treatments for cancers and inflammatory diseases like psoriasis, picked up 15.3 million shares at $3.82 a share. Investors welcomed the deal, pushing the volatile stock up 24 per cent to $3.99 on Monday.
The surge boosted the value of Mr Itescu's 22 per cent stake in the company by $53 million to $272 million.
Mesoblast shares have lost about 16 per cent in the past year, compared with a 10 per cent rise in the benchmark S&P/ASX 200 index.
The stock last traded at the placement price a month ago, but has traded as high as $5.75 in the past year. Mr Itescu said Mesoblast and Celgene began talks about six months ago. He described the deal as "a fair transaction".
"The right time is when you come to an arrangement with a strategic partner," he said. "Where the share price is at any given time is much less relevant to the value of the technology and the partnership."
As part of the deal, which gives Celgene a stake of about 4.5 per cent, the company will have first right of refusal over licensing deals for the commercialisation of Mesoblast's adult stem cell products in the treatment of certain diseases.
That is, if Mesoblast is approached by another company to licence itsdrug candidates for the prevention and treatment of acute graft versus host disease (GVHD), certain oncologic diseases, inflammatory bowel diseases, and organ transplant rejection, Celgene will have six months in which it can mull whether it would like to trump the deal.
Mr Itescu said Celgene has a "strong franchise and sales and marketing capability" in cancer and inflammatory diseases. He said Mesoblast's candidate for the treatment of graft versus host disease, a common complication of bone marrow transplants used to treat cancer, "fits perfectly well into their cancer and oncology franchise."
Link:
Mesoblast takes partnership with Celgene, shares rise 27pc
- Exercise Helps Heart Disease Patients Live Longer - November 8th, 2009 [November 8th, 2009]
- If You Have A Heart Attack, Dial 911, Don't Drive To The ER - November 8th, 2009 [November 8th, 2009]
- Dried Plums, Tart Cherries, Grapes- What do they have in common? - November 8th, 2009 [November 8th, 2009]
- Vitamin D for Me! - November 8th, 2009 [November 8th, 2009]
- Bangkok Hospital Named Best Global Hospital - November 8th, 2009 [November 8th, 2009]
- 10 Years of Stem Cell Science? Where's the Beef? - November 8th, 2009 [November 8th, 2009]
- Women Underestimate Heart Disease Risks - November 8th, 2009 [November 8th, 2009]
- A Stem Cell First- New Organ Created and Transplanted Using Adult Stem Cells - November 8th, 2009 [November 8th, 2009]
- Stem Cells Injected Directly Into the Heart- Sounds Familiar - November 8th, 2009 [November 8th, 2009]
- Heart Disease and Depression Are Linked - November 8th, 2009 [November 8th, 2009]
- TheraVitae Wishes Everyone A Happy Thanksgiving - November 8th, 2009 [November 8th, 2009]
- VesCell Adult Stem Cells Helping Pulmonary Hypertension - November 8th, 2009 [November 8th, 2009]
- VesCell Adult Stem Cells Help Dilated Cardiomyopathy Patient - November 8th, 2009 [November 8th, 2009]
- Another Dilated Cardiomyopathy Patient Helped by VesCell Adult Stem Cells - November 8th, 2009 [November 8th, 2009]
- Clinical Data of VesCell Used On Heart Disease Patients - November 8th, 2009 [November 8th, 2009]
- Results of Patients Treated with Adult Stem Cells for Heart Disease - November 8th, 2009 [November 8th, 2009]
- Results of Doctor Using VesCell for Heart Disease Published in Medical Journal - November 8th, 2009 [November 8th, 2009]
- Stem Cells from VesCell Help Another Patient With Congestive Heart Failure - November 8th, 2009 [November 8th, 2009]
- VesCell Uses Adult Stem Cells Not Fetal Stem Cells - November 8th, 2009 [November 8th, 2009]
- Dilated Cardiomyopathy Continues Improving After Stem Cell Therapy - November 8th, 2009 [November 8th, 2009]
- American Doctors Form Group to Oppose FDA's Stance On Adult Stem Cells - November 8th, 2009 [November 8th, 2009]
- Adult Stem Cell Pioneer Passes Away - November 8th, 2009 [November 8th, 2009]
- Dilated Cardiomyopathy Patient Celebrates His 1 Year Stem Cell Treatment Anniversary - November 8th, 2009 [November 8th, 2009]
- Vescell Featured In Forbes Magazine! - November 8th, 2009 [November 8th, 2009]
- Adult Stem Cells Repair Damaged Heart Muscle - November 8th, 2009 [November 8th, 2009]
- No Scooter Needed for Schlueter- Heart Disease Patient Back in Gym After Stem Cell Treatment - November 8th, 2009 [November 8th, 2009]
- Stem cells provide second chance - November 8th, 2009 [November 8th, 2009]
- Adult Stem Cell Therapy Scientific Advisory Board - November 8th, 2009 [November 8th, 2009]
- Partner hospitals give Heart Disease treatment with Adult Stem Cell Therapy - November 8th, 2009 [November 8th, 2009]
- Stem Cell Treating Physicians for Heart Disease - Vescell by Theravitae - November 8th, 2009 [November 8th, 2009]
- Heart Disease Treatment FAQs - Adult Stem Cells Treats Heart Disease - November 8th, 2009 [November 8th, 2009]
- Checklist of 12 Must-Ask Questions for Overseas Treatment - November 8th, 2009 [November 8th, 2009]
- Health teaching for patients with heart disease | VesCell adult stem cell therapy - November 8th, 2009 [November 8th, 2009]
- Ethical Debates Adult Stem Cell Research | VesCell adult stem cells treatment - November 8th, 2009 [November 8th, 2009]
- Heart disease and health policy and nurse | VesCell adult stem cells treatment - November 8th, 2009 [November 8th, 2009]
- After Stent Symptoms | VesCell Adult Stem Cell Therapy - November 8th, 2009 [November 8th, 2009]
- What is adult stem cell research | VesCell Adult Stem Cell Therapy - November 8th, 2009 [November 8th, 2009]
- Alternative Medicine for Coronary Artery Disease | VesCell Adult Stem Cell Therapy - November 8th, 2009 [November 8th, 2009]
- Diabetic, Seven Heart Attack Patient Experiences on Adult Stem Cell Treatment - November 8th, 2009 [November 8th, 2009]
- Congestive Heart Failure and Life Expectancy | VesCell Adult Stem Cell Therapy - November 8th, 2009 [November 8th, 2009]
- Chest Pain After Angioplasty with Stent | VesCell adult stem cells treatment - November 8th, 2009 [November 8th, 2009]
- Use of Stem Cells for Heart Repair | VesCell Adult Stem Cell Therapy - November 8th, 2009 [November 8th, 2009]
- Women health heart attack - November 8th, 2009 [November 8th, 2009]
- Health Facts on the Heart | VesCell Adult Stem Cells Treatment - November 8th, 2009 [November 8th, 2009]
- The Process of Stem Cells | VesCell Adult Stem Cells Treatment - November 8th, 2009 [November 8th, 2009]
- Rest Pain Leg | VesCell adult stem cells for peripheral artery disease - November 8th, 2009 [November 8th, 2009]
- Health Supplements Heart Diabetes | VesCell Adult Stem Cells Treatment - November 8th, 2009 [November 8th, 2009]
- Heart Failure Epidemic | VesCell adult stem cells treatment - November 8th, 2009 [November 8th, 2009]
- Heart Muscle Health Aspects | VesCell adult stem cell therapy - November 8th, 2009 [November 8th, 2009]
- adult stem cells | VesCell adult stem cells treatment - November 8th, 2009 [November 8th, 2009]
- Updated article about adult stem cells therapy, VesCell, as featured in Forbes Magazine - November 8th, 2009 [November 8th, 2009]
- Forbes: Vescell Stem Cell Therapy Saves Heart Failure Patient - November 8th, 2009 [November 8th, 2009]
- Foetal Stem Cells Offer Hope for Stroke Victims - November 8th, 2009 [November 8th, 2009]
- Stem cells could spell end for diabetes jabs - November 8th, 2009 [November 8th, 2009]
- Full text answers about stem cell research - November 8th, 2009 [November 8th, 2009]
- Stem Cell Transplant from Umbilical Cord Blood Is The Only Hope for SCID Sufferer - November 8th, 2009 [November 8th, 2009]
- New Studies About Umbilical Cord Blood And Children With Diabetes - November 8th, 2009 [November 8th, 2009]
- Engineered Blood Vessels Function Like Native Tissu - November 8th, 2009 [November 8th, 2009]
- Umbilical Cord Blood Stem Cells Provide Hope for Life Threatening Diseases - November 8th, 2009 [November 8th, 2009]
- Gov. Schwarzenegger Signs SB962 to Create a System to Collect and Store Umbilical Cord Blood - November 8th, 2009 [November 8th, 2009]
- Baby Boy Treated for Cerebral Palsey with His Own Cord Blood Stem Cells - November 8th, 2009 [November 8th, 2009]
- Cord Blood May Preserve Insulin Production in Newly Diagnosed Children With Type 1 Diabetes - November 8th, 2009 [November 8th, 2009]
- A "Holy Grail" Of Healing, CBS Evening News - November 8th, 2009 [November 8th, 2009]
- After Receiving Unusual Stem Cell Transplant, Coppell Toddler Comes Home from Hospital - November 8th, 2009 [November 8th, 2009]
- Stem Cell Hope for Bone Fractures - November 8th, 2009 [November 8th, 2009]
- Cord Blood Stem Cells And Cardiovascular Disease - November 8th, 2009 [November 8th, 2009]
- Creating a Cord-Blood Lifeline - November 8th, 2009 [November 8th, 2009]
- Saving Cord Blood - November 8th, 2009 [November 8th, 2009]
- Stem Cell Implant to the Brain Helps Improve Parkinson's Symptoms: Presented at SIR - November 8th, 2009 [November 8th, 2009]
- Governor Rendell Signs Bill Into Law - November 8th, 2009 [November 8th, 2009]
- Curing Blood Diseases: How Cord Blood Saves Lives - November 8th, 2009 [November 8th, 2009]
- Cord Blood Registry Gains Momentum in First Quarter; Forecasts Strong Enrollment Growth in 2008 - November 8th, 2009 [November 8th, 2009]
- Study findings from University of Florida, Department of Pediatrics provide new insights into cord blood - November 8th, 2009 [November 8th, 2009]
- Cord Blood Can Be Used To Treat Adult Leukemia - November 8th, 2009 [November 8th, 2009]
- Umbilical cord a lifeline for 2 kids - November 8th, 2009 [November 8th, 2009]
- For Stem Cells, a Role on the Battlefield - November 8th, 2009 [November 8th, 2009]
- Cochlear Repair After Transplant Of Human Cord Blood Cells May Make Hearing Restoration Possible - November 8th, 2009 [November 8th, 2009]
- About Stem Cells - November 8th, 2009 [November 8th, 2009]
- Stem cells: Small wonders - November 8th, 2009 [November 8th, 2009]
- Stem Cell Therapy Lessens Damage Caused By Stroke - November 8th, 2009 [November 8th, 2009]