Mesoblast shares are up two per cent after the US physician in charge of its phase 3 drug trial presented evidence Mesoblast’s stem cell therapy can reduce deaths in children with a complication from bone marrow transplants.

Duke University Medical Center pediatric transplant physician Dr Joanne Kurtzberg presented research at the annual meeting of the American Society of Hematology on Meosblast’s remestemcel-L stem cell therapy.

Remestemcel-L reduced inflammatory biomarkers in children that are strongly linked to survival outcomes, Mesoblast says.

“These results support the bioactivity of remestemcel-L in treating the severe inflammation in children with acute graft versus host disease refractory to steroids and provide evidence linking the immunomodulatory properties of remestemcel-L with the excellent responses and survival we see when treating these desperately ill children,” Dr Kurtzberg said.

Mesoblast shares plunged in early October after the US Food and Drug Administration went against the recommendation of advisory committee and asked the company to conduct another phase 3 trial of its remestemcel-L therapy, rather than approve it. The company spent $7.4 million last quarter building inventory of remestemcel-L, thinking the stem cell infusion would be approved.

At 1.28pm Mesoblast shares were up 2.1 per cent to $4.41.