Mesoblast's new appointments "increase global visibility"

Mesoblast (ASX:MSB) has added another high-profile biotech figure to its payroll, in an appointment Bell Potter Securities said is likely to increase the company’s visibility on the world stage.

The company has appointed former Novartis CFO Jonathan R Symonds as executive for corporate finance and strategy.

Symonds was CFO of Novartis between 2009 and 2013. Prior to this he held roles including managing director of Goldman Sachs in the UK and CFO of AstraZeneca. Symonds was named a Commander of the British Empire in 2007.

The appointment comes days after Mesoblast revealed that former Roche Pharmaceuticals CEO William M Burns has joined its board as a non-executive director.

In a research note, Bell Potter Securities analyst Tanushree Jain said the two high-profile appointments strengthen Mesoblast’s executive team and board, and are likely to “increase its global visibility and increase market confidence” in the company.

“In our view, [Mesoblast’s] ability to attract these industry stalwarts imparts more credibility to the story, validates its technology and is a testament to its strong position at the forefront of the regenerative medicine space,” the note reads.

“Both are industry veterans and have held top positions at big pharma companies in the past. They are well known and respected in the global pharma and biotechnology circles.”

In particular, Burns’ positions on the board of Dublin-based biopharmaceutical company Shire and Japanese pharma Chugai Pharmaceutical could open the doors for Mesoblast to explore forming commercial partnerships with the two companies.

Shire has a focus on regenerative medicine, and the therapeutic areas Mesoblast concentrates on would complement Chugai’s, Bell Potter noted.

The investment and advisory firm has maintained its ‘buy’ rating on Mesoblast shares, with a price target of $9.43.

Mesoblast (ASX:MSB) shares were trading 0.7% lower at $5.74 as of around 1.30 pm on Thursday.