Hercules Capital Provides US$15M From Existing Facility for Mesoblast to Accelerate Product Commercialization Programs

Mesoblast (ASX:MSB;Nasdaq:MESO) today announced that it has drawn down a further US$15 million from its US$75 million, non-dilutive, four-year credit facility with Hercules Capital (NYSE:HTGC).

As quoted in the press release:

The additional non-dilutive capital was made available after the success of Mesoblast’s product candidate Revascor (MPC-150-IM) in having significantly reduced hospitalization rates from major gastrointestinal bleeding in patients with end-stage heart failure and a left ventricular assist device (LVAD) compared with controls in the 159-patient Phase 2 trial funded by the U.S. National Institutes of Health.

Mesoblast plans to meet with the U.S. FDA during the first half of 2019 to discuss a potential approval pathway for Revascor having met this clinically meaningful outcome in LVAD patients.

Additionally, Mesoblast plans to submit a rolling Biologics License Application with the FDA for use of remestemcel-L in treating aGVHD in children in early 2019 and will execute on the product candidate’s market access and commercialization strategy. There are no FDA approved treatments for this disease with high mortality.

Scott Bluestein, Chief Investment Officer of Hercules Capital, said: “We are pleased with the continued clinical and corporate progress of Mesoblast since the original funding of our credit facility. We have made available a US$15 million second advance following Mesoblast’s performance in 2018.

Click here to read the full press release.