Mesoblast wins key cardiovascular patent in EU

Mesoblast (ASX:MSB) has been granted a European patent covering the use of its mesenchymal precursor cells (MPCs) to treat cardiac and vascular conditions.

The new patent grants Mesoblast exclusive commercial rights to use its MPCs to treat these indications in Europe until at least 2024.

It covers contritions including acute myocardial infarction, congestive heart failure, angina, peripheral arterial disease and cerebrovascular stroke.

Mesoblast is developing products for these conditions using its MPCs and the culture-expanded mesenchymal stem cells (MSCs) derived from them. These cells can release factors that induce blood vessel formation and enhance vascular flow, prevent heart muscle death and modulate monocytes and T-cells.

Mesoblast already holds two European patents covering using MSC products to treat damaged heart muscles.

The company is trialling MPCs in acute myocardial infarction, with a phase IIa/IIb trial due to wrap up by mid-2016. Development partner Teva Pharmaceuticals is also conducting a phase III trial of MPCs in chronic congestive heart failure.

In a research note, Bell Potter Securities said the award of the patent is an “important tick for the company”.

Bell Potter is maintaining a buy rating on Mesoblast, valuing the shares at $9.51 base case and $19.44 optimistic case.

“The company has one of the most diversified pipelines and could potentially have five Phase III trials running in parallel across all of its four core focus therapeutic areas in calendar 2014,” the firm said.

Mesoblast (ASX:MSB) shares were trading 1.04% higher at $5.85 as of around 2 pm on Friday.