Biotech: Mesoblast scores $US150m stem cell partnership to treat back pain, shares jump
Health & Biotech
Health & Biotech
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Biotech company Mesoblast (ASX:MSB) has entered into a strategic partnership to develop and commercialise a stem cell treatment for chronic lower back pain.
As part of the deal, Mesoblast said it could receive up to $150m ($218.6m) in up-front and milestone payments prior to launch.
MSB will develop the technology in conjunction with Grünenthal, a German company which specialises in pain management treatment.
Shares in Mesoblast jumped more than 15 per cent in morning trade.
Both companies will work together to commercialise the MPC-06-ID treatment — a phase III allogeneic stem cell therapy used to treat chronic low back caused by degenerative disc disease.
Mesoblast said the therapy would be applicable for patients who have “exhausted conservative treatment options”.
The company is currently completing a phase III trial for MPC-06-ID in the US, the results of which will be received in 2020.
In an earlier phase II trial, the company said it demonstrated that a single intra-discal injection “resulted in meaningful and durable improvements for patients in pain intensity and functionality for at least three years”.
Phase III trials are typically carried out to confirm the safety and effectiveness of a given treatment on a larger group of people.
Under the terms of the agreement, Grünenthal will have “exclusive commercialisation rights to MPC-06-ID for Europe and Latin America”.
Mesoblast said it will receive up to $US150m in upfront payments prior to product launch. The company is targeting receipt of around $45m of that in the next 12 months, which includes a $20m payment upon “regulatory approval to begin a confirmatory phase III trial in Europe”.
“If clinical trial results from phase II are confirmed, MPC-06-ID could offer a new treatment option to patients otherwise considered unresponsive to conservative therapy,” the company said.
Read more about Mesoblast:
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