Mesoblast (ASX:MSB) Shares Soar 23% as Cash Burn Falls 86% and FDA Opens Path to a Heart Failure Filing

Ujjwal Maheshwari
4 Min Read

Mesoblast (ASX:MSB) shares closed 23.4% higher at A$2.32 on Thursday 29 October 2026, the best performance in the ASX 200, according to IBTimes. The cell therapy company’s quarterly report showed a sharp fall in cash burn, record patient starts for Ryoncil and a positive meeting with the US Food and Drug Administration (FDA).

What Mesoblast reported

According to Mesoblast’s quarterly activities report for the three months to 30 September:

Metric Sep quarter 2026 Sep quarter 2025
Ryoncil net revenue US$28M US$19M
Net operating cash spend US$2.1M US$14.9M
Cash at 30 September US$98.5M n/a

Ryoncil revenue was first flagged on 16 October, and the shares then fell about 11% because sales were below the June quarter and analyst forecasts. Thursday’s report added more detail:

  • Cash burn: down 86% to US$2.1 million for the quarter
  • Patient starts: September was Ryoncil’s best month for new patients
  • Adult trial: a registration trial to expand Ryoncil to adults is enrolling, with up to 40 US sites expected this year

CEO Silviu Itescu said the first-quarter results “show continued momentum for Ryoncil” sales.

The FDA meeting

Mesoblast said that following an FDA meeting, it may proceed with a Biologics License Application (BLA) for rexlemestrocel-L. The application would cover life-threatening gastrointestinal bleeding in end-stage heart failure patients with a left ventricular assist device. Formal meeting minutes are expected shortly, and no filing date was given.

Mesoblast also completed treatment of all 350 patients in its Phase 3 trial of rexlemestrocel-L for chronic low back pain. Results are expected next year.

The insider angle: a director’s US$28M bet

Non-executive director Greg George, who is also listed as a 10% owner in his US filings, has been one of Mesoblast’s biggest buyers this year. Through related parties, he bought:

  • March 2026: about US$16.4 million of shares and ADSs on the market, according to TipRanks
  • 9 and 10 April 2026: about US$11.4 million more, with ADSs bought at about US$14.10 to US$14.40 each, according to his Form 4 filing

Mesoblast’s Nasdaq ADSs traded at about US$15.68 early Thursday, up 17%, according to IBTimes, putting George’s April purchases back in profit.

State Street also became a substantial holder with 5.15% on 23 October, according to a substantial holder notice. Our Applied Digital report explains how to read Form 4 filings.

What Mesoblast investors should watch

  • The FDA minutes and timing of the BLA filing
  • Ryoncil sales in the December quarter
  • Back pain trial results next year
  • Director trades in Appendix 3Y notices and Form 4 filings

Bottom line

Mesoblast is now burning very little cash, Ryoncil demand is building and a new FDA filing is in sight. With a director spending about US$28 million on shares this year, insiders are clearly backing the turnaround, but the company is still loss-making and sales growth must continue.

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Ujjwal Maheshwari is a Sydney-based writer and the founder of MarketInc. He contributes company research and market commentary to Insider Trade Research, covering businesses across the US and Australia. Alongside his publishing work, he helps Australian businesses grow through SEO, Google Ads, landing pages and conversion tracking. His work at MarketInc spans trades and home services, healthcare, professional services and property. He also writes about digital strategy, customer acquisition and business growth. Bachelor of Commerce (Finance), University of New South Wales (UNSW)