Mesoblast cuts third-quarter net loss

A drop in research and development expenses, as well as in admin costs, helped Mesoblast cut its third-quarter loss to March 31.

Stem cell therapy company Mesoblast has narrowed its third-quarter loss thanks to falls in research and development expenses and in administration costs.

The dual-listed Mesoblast - which made a disappointing debut on New York's NASDAQ in November - reported a net loss of $US16.9 million ($A23.10 million) for the three months to March 31.

That compares to a net loss of $US22.2 million for the same period a year earlier.

R&D expenses fell by 10.6 per cent to $US12 million, while management and administration costs dropped by 19.6 per cent to $US5.4 million.

Revenue fell 2.3 per cent to $US4.1 million from $4.2 million, mainly due to currency hedging.

JPMorgan said in a note the company "continues to make steady progress."

Mesoblast's cash reserves fell to $US100 million at the end of the third quarter from $US120.8 million three months earlier.

The company reiterated its annual guidance that quarterly operating cash burn will fall by about 20-25 per cent in comparison with the first quarter of FY16 and fourth quarter of FY15.

Mesoblast shares were down five cents to $2.01 in a slightly higher Australian market.

MESOBLAST'S THIRD QUARTER

* Revenue down 2.3pct to $US4.1m

* Net loss down 23.9pct to $US16.9m


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Source: AAP


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