Mesoblast disappoints in another below-the-range biotech IPO

Australian biotech Mesoblast ($MESO) priced its U.S. IPO below expectations, raising $60 million to support its pipeline of cell therapies. The company had planned to move 5.7 million shares at $12.10 each but eventually dialed up that offering to 7.5 million shares and settled for $8 apiece. With the funds, Mesoblast will invest in 5 Phase III-ready candidates, which rely on mesenchymal lineage adult stem cells, or MLCs. Teva ($TEVA) is partnered up on Mesoblast's lead treatment for heart failure, and Celgene ($CELG) bought up a $45 million stake in the company this year that gives it the right to join in on R&D in the future. Release