Mesoblast shares closed at A$1.77 on Monday 19 October 2026, about 11% below the A$1.99 they traded at before the company’s September quarter update. Sales of its approved cell therapy Ryoncil rose strongly on last year but fell from the June quarter and came in well below analyst forecasts.
Ryoncil is the first FDA-approved mesenchymal stromal cell therapy, used to treat steroid-refractory acute graft versus host disease in children. It generated US$115 million of net revenue in FY26, its first full year on the market.
What Mesoblast reported
According to Mesoblast’s quarterly update, released on Friday 16 October:
- Ryoncil net revenue: US$28 million, up 44% from US$19 million a year earlier
- Net operating cash spend: US$2.3 million, down 85% from US$14.9 million
- Cash: US$99 million at 30 September
- Treatment centres: 54 onboarded sites
CEO Silviu Itescu said the company saw a “strong year-on-year increase in net revenues” and plans “for continued growth.”
Why the market sold off
The problem was the comparison with the previous quarter. Ryoncil delivered US$36 million of net revenue in the June quarter, according to Mesoblast’s July update. The September result was about 22% lower.
Analysts had expected around US$40 million, according to Market Index, so the result was about 30% short.
Mesoblast said September had the most new patient starts of any month, which it put down to seasonal treatment scheduling after the northern summer break in July and August.
What brokers are saying
Bell Potter kept its buy rating after the update but trimmed its price target to A$4.40 from A$4.45, according to Market Index. That target is still more than double the current share price.
What the CEO has done with his own shares
Itescu is also Mesoblast’s founder and one of its largest shareholders. In July 2026, he exercised 1,885,334 options at A$1.45 each, paying A$2.73 million to the company and keeping all the shares. That took his holding to 80,844,262 shares.
He said the investment reflected his “strong confidence in Mesoblast’s continued growth trajectory.” The shares now trade about 22% above his A$1.45 exercise price.
Exercising options is different from buying shares on market, but keeping the shares rather than selling them is a signal investors often watch. Our Megaport insider trading analysis explains why the type of insider trade matters.
What Mesoblast investors should watch
- December quarter Ryoncil sales, to see whether September’s record patient starts flow through
- The adult trial for steroid-refractory acute graft versus host disease, a larger market than children
- Director trades in Appendix 3Y notices after the fall
- Cash use, with US$99 million in the bank
Bottom line
Mesoblast’s Ryoncil sales are still growing on last year, and cash burn has fallen sharply. But a 22% drop from the June quarter and a big miss on forecasts were enough to push the shares down about 11%. As with Paladin’s recent production miss, the next quarter will be key.
