Mesoblast refuses to rule out share raising

Cash reserves at the end of December fell to $149.2 million, from $196.4 million at the end of June. Photo: Erin Jonasson

Regenerative medicine group Mesoblast has refused to rule out raising fresh funds from the sharemarket as it continues to burn about $25 million a quarter in its stem cell research programs, which has left it with an "18-month runway" with its existing cash reserves.

However, the preferred option is to pursue partnerships with other drug companies.

"There are a number of strategic partnerships" covering its tier one and tier two candidate treatments, chief financial officer Paul Hodgkinson said.

"Our disc program is our most advanced unpartnered program," chief executive Silviu Itescu said. "A partner with an established sales force would be the appropriate partner for us ... and they would take on the full cost of our development program."

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It was the same with the company's rheumatoid arthritis research program, Mr Itescu said.

"Discussions are active and ongoing ... and clinical developments will be taken by our partner and the expected upfront [payment] would add substantially to our runway."

He also pointed to the prospects for attracting funds from Japan, Europe and the United States for the company's research.

Cash reserves at the end of December fell to $149.2 million, from $196.4 million at the end of June.

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Mesoblast refuses to rule out share raising