Mesoblast inks deal with Novartis to bring Covid stem-cell therapy to market

Accelerating the development and commercialization of their anti-inflammatory stem-cell therapy, Australia’s Mesoblast (ASX: MSB) today announced an exclusive worldwide license and collaboration agreement with Swiss pharma giant Novartis (NOVN: VX), with the news sending the firm’s shares up as much as 13.8% to A$3.64.

The deal is for the development, manufacture and commercialization of Mesoblast’s mesenchymal stromal cell (MSC) product remestemcel-L (trade name Ryoncil), with an initial focus on the development of the treatment of acute respiratory distress syndrome (ARDS), including that associated with COVID-19.

Mesoblast chief executive Dr Silviu Itescu stated: “Our collaboration with Novartis will help ensure that remestemcel-L could become available to the many patients suffering from ARDS, the principal cause of mortality in COVID-19 infection. This agreement is in line with our corporate strategy to collaborate and partner with world-leading major pharma companies in order to maximize market access for our innovative cellular medicines.”