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Mesoblast shares rise despite 1Q loss

AAP logoAAP 14/11/2016

Mesoblast shares have risen despite the regenerative medicine company's first-quarter loss widening 50 per cent to $19.8 million.

Revenue for the three months to September 30 plummeted to $395,000 from $7.5 million, but the company's shares continued to rise on Tuesday following the previous day's 6.4 per cent gain.

Monday's gain followed an announcement of positive results from one of its trial drugs to treat acute versus graft host disease in children.

On Tuesday, Mesoblast said it is continuing to pump money into its chronic heart failure treatment trials and is in advanced discussions to establish potential strategic partnerships to commercialise its lead products.

First-quarter research and development expenses increased 26 per cent to $14.0 million.

Mesoblast in June regained worldwide rights to its experimental therapy for advanced chronic heart failure when drugs giant Teva Pharmaceutical ended a long-standing research partnership.

At 1020 AEDT, Mesoblast shares were up 4 cents, or 3.2 per cent, at $1.29.

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