Together at last - Mesoblast acquires Angioblast

Melbourne-based Mesoblast, developer of stem cell therapies, has bought out all remaining shares of its US-based associate company, Angioblast Systems.

Like Mesoblast, Angioblast works with mesenchymal precursor cells, except for the treatment of cardiovascular and vascular diseases, while Mesoblast focuses on orthopaedic conditions.

Mesoblast has worked with Angioblast in the past, although the acquisition gives Mesoblast full access to the intellectual property and mesenchymal precursor cell technology developed by Angioblast.

Mesoblast will continue development of its orthopaedic products in addition to cardiovascular disease, vascular disease, eye disease, diabetes and bone marrow transplantation.

After the acquisition Mesoblast will have a market capitalisation of $455 million.

Mesoblast also announced at $37 million capital raising to help fund the acquisition, with money coming from United Kingdom and Australian investors, managed by Southern Cross Equities and Lodge Partners.

Existing Angioblast stockholders will be given the option of taking their consideration either as Mesoblast stock or as up to 15 per cent cash and the rest as stock, with the cash offered to allow US stock holders to cover capital gains tax that comes as a result of the transaction.

Mesoblast's (ASX:MSB) stock was halted on May 3 at $1.95 and has dropped marginally to $1.90 in today's trading.