Mesoblast to push development of dental pulp stem cells

Mesoblast (ASX:MSB) has revealed plans to work with partner Teva Pharmaceutical Industries to commercially develop off-the-shelf adult dental pulp stem cells (DPSCs).

In an presentation at the Jefferies Global Healthcare Conference in New York, Mesoblast CEO professor Silviu Itescu detailed plans to produce the stem cells for the treatment of stroke, spinal cord injury, Parkinson's and Huntington's diseases.

Mesoblast has licensed the exclusive worldwide commercial rights to granted composition of matter patents covering DPSCs.

DPSCs are mesenchymal precursor cells (MPCs) known to produce more neurotrophic factors than other adult stem cell types.

The cells have shown promise at protecting and repairing neural tissue after spinal cord injury and stroke.

DPSCs are STRO-1 positive, meaning they tend to be more homogenous and have higher rates of adherence and proliferation than other MPCs. STRO-1 is a monoclonal antibody used in the sorting and identification of MPCs.

Mesoblast entered into an alliance with Cephalon Pharmaceuticals in December 2010 to develop and commercialise adult stem cell therapeutics for degenerative CNS and cardiovascular conditions.

Teva Pharmaceutical subsequently acquired Cephalon for $6.2 billion. Teva made its bid in May 2011, and the deal closed that October.

As part of its partnership with Mesoblast, Teva has licensed exclusive rights to Mesoblast cardiovascular, neurologic and bone marrow transplant cord blood products.

Itsecu explained that Mesoblast plans to use the cash from the milestone payments by Teva to fund the rest of the company's pipeline, including products for type two diabetes, inflammatory diseases and orthopedic conditions.

At the time of Itsecu's presentation, Mesoblast had a market capitalisation of US$1.7 billion ($1.72 billion).

Mesoblast (ASX:MSB) shares were trading 2.92% lower at $6.31 at 4:00pm on Friday.