“My best pick for the year ahead is the biotech stock Mesoblast (MSB),” said Julia with confidence.
Biotech companies are known to be notorious for consuming money because it is expensive to go through phase 1, phase 2, phase 3 trials and then look to regulatory approval in the US. “Mesoblast has now completed, or is in the final stages of, phase 3 with many of its products. It is reaching that inflection point of moving from consuming huge amounts of capital to looking to generate revenue,” she added.
“Its first approval in the US is potentially Remestemcel-L to treat steroid refractory acute graft vs host in children. The Food & Drug Administrative is due to make a decision at the end of this month. If approved, it would be the first allogenic stem cell product to be approved in the US.
“At the moment, Remstemcel-L also has expanded access status for compassionate use Remstemcel-L in Children with inflammatory syndrome associated with Covid-19.
“In addition, trials for Mesoblast’s products in heart failure and lower back pain are both in phase 3 trials,” she said.
A biotech has a long walk before its product hits the commercialisation stage.
“For Mesoblast, many of its products have completed most of the hard work and there are a number of company changing catalysts over the next 6-12 months,” Julia said.
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