Shares of Mesoblast Limited (MESO) are rising more than 20% Friday morning after the company signed a $50-million deal with Swiss pharmaceutical giant Novartis.
Novartis has secured the rights to develop, commercialize and manufacture Mesoblast’s Remestemcel-L for the treatment of acute respiratory distress syndrome (ARDS), including that associated with Covid-19.
Novartis has agreed to $50 million upfront payment to Mesoblast including $25 million investment in equity.
Remestemcel-L is currently being studied in Covid-19-related ARDS in an ongoing phase III study. Novartis plans to initiate a phase III study in non-Covid-19-related ARDS after the closing of the deal and successful completion of the current study.
MESO stock is currently trading at $14.28. It has been trading in the range of $3.12- $21.28 in the last one year.
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