Mesoblast bolsters cash position in FY13

Mesoblast (ASX:MSB) improved its cash position by over $100 million and cut its losses by nearly $10 million during FY13.

The regenerative medicine company ended the financial year with total funds of $315.3 million, compared with $205.6 million in 2012.

Mesoblast’s net loss after tax for FY13 meanwhile narrowed to $61.7 million, from $71.1 million in FY12, even as revenue declined 9.4% to $34.7 million.

During the year, the company raised $170 million through a placement to global investors.

The funds will be used to support planned phase III trials of its mesenchymal precursor cells (MPCs) in conditions including congestive heart failure, rheumatoid arthritis, spinal fusion and intravertebral disc repair.

Mesoblast CEO Silviu Itescu said that in addition to providing funding for late-stage trials, the company will be able to use its strong cash position to broaden its clinical development programs in inflammation and immunity.

“Our scientific, clinical and financial strengths will continue to provide marketplace differentiation and position Mesoblast as a leading force in the development of cellular-based therapies for a broad range of intransigent diseases.”

Mesoblast (ASX:MSB) shares were trading 0.46% lower at $5.445 as of around 12.30 pm on Friday.