Mesoblast Limited (ASX: MSB) shares experienced a positive bump today following the announcement of strong revenue growth for its product Ryoncil, indicating increasing market traction. The company’s stock saw a modest gain as markets reacted to the news.
The company’s shares on the ASX: MSB rose almost 3.09% today to A$2.67 following the announcement of its Q2 FY2026 results. While this offers some respite to shareholders, the stock remains down -13.87% YTD, reflecting previous market concerns.
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Specifically, Mesoblast reported gross revenue of US$21.9 million from Ryoncil sales for the quarter ended September 30th. This represents a 66% increase compared to the US$13.2 million reported for the prior quarter ended June 30th, which marked the initial commercial launch of the product.
Ryoncil is the first mesenchymal stromal cell (MSC) product approved by the U.S. Food and Drug Administration for any indication, and the only product approved for children under age 12 with steroid-refractory acute graft-versus-host disease (SR-aGvHD).
The company reported a net loss after tax of US$102.1 million for FY2025, compared to US$88.0 million in the previous year, despite a 191% increase in total revenues from cell therapy products, primarily driven by Ryoncil’s launch. Ryoncil also benefits from seven years of orphan-drug exclusivity in the U.S.
CEO Dr. Silviu Itescu stated, “We are very pleased with the adoption of Ryoncil(R) to date and with reimbursement by both commercial and government payers. We expect adoption to be further enhanced following the permanent J-Code assigned by Centers for Medicare and Medicaid Services which became active October 1.”
The company’s future hinges on sustained sales growth of Ryoncil and potential expansion into new indications. While the recent revenue surge and orphan-drug exclusivity are positive signs, the company’s continued net losses remain a concern for markets. The assigned J-Code by CMS, effective October 1st, is anticipated to further streamline reimbursement processes and boost adoption rates, which will need to play out in the coming quarters.
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