Mesoblast has reported impressive efficacy data from the first cohort of the Phase II trial of its mesenchymal precursor cell (MPC) product in rheumatoid arthritis (RA), ahead of full results due in Q316. Key catalysts next quarter will be the first interim analysis from the pivotal MPC-150-IM heart failure trial, together with an update to trial timelines following the halving of the trial to 600 patients. The launch of Temcell in Japan for graft vs host disease this quarter will bring a royalty stream from partner JCR Pharmaceuticals. We lift our valuation to A$7.36 per share (from A$7.20).
