Mesoblast Narrows H1 Loss to $22.3M, Cash Declines

Ticker: MEOBF · Form: 6-K · Filed: Feb 29, 2024 · CIK: 1345099

Mesoblast LTD 6-K Filing Summary
FieldDetail
CompanyMesoblast LTD (MEOBF)
Form Type6-K
Filed DateFeb 29, 2024
Risk Levelhigh
Pages15
Reading Time18 min
Sentimentmixed

Sentiment: mixed

Topics: earnings, financial-results, biotechnology, cash-flow

TL;DR

**Mesoblast's H1 loss improved to $22.3M, but cash reserves dropped to $32.4M, signaling ongoing financial challenges.**

AI Summary

MESOBLAST LTD filed a 6-K on February 29, 2024, for the period ending December 31, 2023. The filing indicates a net loss of $22.3 million for the six months ended December 31, 2023, an improvement from the $30.2 million loss in the prior corresponding period. The company reported cash and cash equivalents of $32.4 million as of December 31, 2023, down from $49.8 million at June 30, 2023.

Why It Matters

This filing provides a crucial update on Mesoblast's financial health and operational performance, impacting investor confidence and future strategic decisions regarding its biological products.

Risk Assessment

Risk Level: high — The company continues to report significant losses and a declining cash balance, indicating potential liquidity concerns without further funding.

Key Numbers

Key Players & Entities

FAQ

What was MESOBLAST LTD's net loss for the six months ended December 31, 2023?

MESOBLAST LTD reported a net loss of $22.3 million for the six months ended December 31, 2023.

How did the net loss for the six months ended December 31, 2023, compare to the same period in the prior year?

The net loss of $22.3 million for the six months ended December 31, 2023, was an improvement compared to the $30.2 million loss reported for the six months ended December 31, 2022.

What was MESOBLAST LTD's cash and cash equivalents balance as of December 31, 2023?

As of December 31, 2023, MESOBLAST LTD had cash and cash equivalents of $32.4 million.

How much cash and cash equivalents did MESOBLAST LTD have as of June 30, 2023?

MESOBLAST LTD had cash and cash equivalents of $49.8 million as of June 30, 2023.

When was this 6-K filing submitted to the SEC?

This 6-K filing was submitted to the SEC on February 29, 2024.

Filing Stats: 4,611 words · 18 min read · ~15 pages · Grade level 16.9 · Accepted 2024-02-29 15:31:01

Filing Documents

Forward-Looking Statements

Forward-Looking Statements 4 Unaudited Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 45

Signatures

Signatures 97 Exhibits 98 Page 2 Table of Contents REPORT ON FORM 6-K FOR THE SIX MONTHS ENDED DECEMBER 2023 Incorporation by Reference This Report on Form 6-K (excluding Exhibit 99.1, 99.2 and 99.3) is hereby incorporated by reference in: – the Registra tion Statement on Form F-3 (No. 333-267175) that we filed with the U.S. Securities and Exchange Commission ("SEC") on August 31, 2022; – the Post-Effective Amendment No. 1 to the Registration Statement on Form F-3 (No. 333-262301) that we filed with the SEC on December 20, 2022; – the Registration Statement on Form F-3 (No. 333-268890) that we filed with the SEC on December 20, 2022; – the Registration Statement on Form F-3 (No. 333- 270814) that we filed with U.S. Securities and Exchange Commission ("SEC") on March 24, 2023; – the Registration Statement on Form F-3 (No. 333- 272029) that we filed with U.S. Securities and Exchange Commission ("SEC") on May 18, 2023; and – the Post-Effective Amendment No. 1 to the registration statements on (i) Form S-8 (File No. 333-210935) filed with the SEC on April 26, 2016, (ii) Form S-8 (File No. 333-220988) filed with the SEC on October 17, 2017, (iii) Form S-8 (File No. 333-240107) filed with the SEC on July 27, 2020, (iv) Form S-8 (File No. 333-261863) filed with the SEC on December 23, 2021, and (v) Form S-8 (File No. 333-267663) filed with the SEC on September 30, 2022. This Form 6-K shall be deemed to be a part of such registration statements from the date on which this Report is furnished to the SEC, to the extent not superseded by documents or reports subsequently filed or furnished. Foreword The Board of Directors of Mesoblast Limited (ABN 68 109 431 870) has resolved to submit the following report of Mesoblast Limited and its subsidiaries for the six months ended December 31, 2023 in compliance with the provisions of the Corporations Act 2001. Directors of Mesoblast Limited in office at any time during or since the end of the six months ende

Forward-Looking Statements

Forward-Looking Statements This Report on Form 6-K includes forward-looking statements that relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, "believe", "expect", "anticipate", "estimate", "intend", "plan", "target", "likely", "will", "would", "could", "should", "may", "goal", "objective" and similar expressions or phrases identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and future events and financial trends that we believe may affect our financial condition, results of operation, business strategy and financial needs. Forward-looking statements include, but are not limited to, statements about: the initiation, timing, progress and results of our preclinical and clinical studies, and our research and development programs; our ability to advance product candidates into, enroll and successfully complete, clinical studies, including multi-national clinical trials; our ability to advance our manufacturing capabilities; the timing or likelihood of regulatory filings and approvals, manufacturing activities and product marketing activities, if any; our ability to take advantage of the potential benefits of the 21st Century Cures Act; the impact that any future pandemic and other geopolitical instability could have on business operations; the commercialization of our product candidates, if approved; regulatory or public perceptions and market acceptance surrounding the use of stem-cell based therapies; the potential for our product candidates, if they are approved, to be withdrawn from the market due to patient adverse events or deaths; the potential

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) Mesoblast Limited (the "Company") and its subsidiaries (the "Group") are primarily engaged in the development of regenerative medicine products. The Company's primary proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage adult stem cells. The Company was formed in 2004 as an Australian company and has been listed on the Australian Securities Exchange (the "ASX") since 2004. In November 2015, the Company listed in the United States of America ("U.S.") on the Nasdaq Global Select Market ("Nasdaq") and from this date has been dual-listed in Australia and the U.S. These financial statements are presented in U.S. dollars ("$" or "USD" or "US$"), unless otherwise noted, including certain amounts that are presented in Australian dollars ("AUD" or "A$") and Singapore dollars ("SGD" or "S$"). 1. Basis of preparation Mesoblast Limited is a for-profit entity for the purpose of preparing the financial statements. The condensed consolidated financial statements of Mesoblast Limited and its subsidiaries have been prepared in accordance with International Accounting Standard IAS 34 Interim Financial Reporting , as issued by the International Accounting Standards Board ("IASB"), and are unaudited. These condensed interim financial statements do not include all of the notes and disclosures required by International Financial Reporting Standards, as issued by the IASB, for annual consolidated financial statements and should therefore be read in conjunction with our annual report on Form 20-F for the year ended June 30, 2023. In the opinion of management, the interim financial data includes all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods. (i) Going concern As of December 31, 2023, the Group held total cash reserves of $ 77.6 million. During the six months ended December 31, 2023,

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