Mesoblast gains on A$29m investment deal with Mallinckrodt

Shares in stem cell company Mesoblast Ltd (ASX:MSB) rose 7% to A$1.51 yesterday after it said that it entered into an equity purchase agreement with US drugmaker Mallinckrodt Pharmaceuticals (NYSE:MNK). Mallinckrodt will buy 20.04 million, or nearly 5%, of Mesoblast’s ordinary shares for A$1.48 apiece.

According to the agreement, Mallinckrodt will have 9 months to finalize commercial and development deals for 2 of the company’s product candidates – MPC-06-ID for the treatment of chronic low back pain and MSC-100-IV for the treatment of acute graft versus host disease. The commercial and development deals will be made in territories outside of Japan and China.

Get the full story at our sister site, Drug Delivery Business News.

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