Mesoblast Limited

Mesoblast reported first-half FY26 total revenue of $51.3 million, with net product revenue from Ryoncil of $49 million. Gross margin was 93%. R&D expense was $46.2 million versus $5.1 million in the prior year period, and SG&A was $28.5 million versus $18 million a year ago. The company reported a net loss of $40.2 million versus $48 million in the prior-year period. Operating cash flow usage for the first fiscal half was $30.3 million, and cash on hand was $130 million at December 31. Management said full-year FY26 Ryoncil net revenue is expected to be $110 million to $120 million, and they expect second-half operating cash usage to decline versus the first half.

Silviu Itescu framed 2026 around four priorities: continued Ryoncil growth, stronger cash generation and capital structure, building an efficient commercial organization, and advancing label expansion plus the second-generation platform. He emphasized that Ryoncil’s launch has been very successful, with revenues growing quarter-on-quarter since April 2025, and said the company is focused on expanding use through physician education, caregiver awareness, and broader indications. His tone was constructive and confident, especially on the commercial rollout and the pipeline milestones.

Jim O’Brien highlighted $51.3 million of total revenue, 93% gross margin, $46.2 million of R&D expense, $28.5 million of SG&A, and a $40.2 million net loss. He noted $30.3 million of operating cash flow usage in the first half and said that usage should decline in the second half due to projected revenue receipts and disciplined cost control. He also emphasized balance-sheet improvement: $130 million in cash at period end, a new $125 million non-dilutive credit facility, $75 million drawn at closing to repay prior senior secured debt, and $50 million available through June 2026.

Analysts focused on the path to the FY26 Ryoncil revenue guide, the assumptions behind reaching 20% pediatric market share by year-end, and how repeat utilization and larger centers are affecting adoption. Management said 20% share is based on an estimated 375-patient dynamic population, and reiterated a 40% peak share view over time. Questions also centered on Revascor’s BLA and whether the filing would be for the full population or specific subgroups; management said it intends to seek a label for the entire LVAD population, while highlighting stronger risk and benefit in ischemic patients. For chronic back pain, management clarified the upcoming filing will use both Phase III trials, with the new trial becoming the primary dataset and readout still expected in 2027.