Mesoblast's Revascor demonstrates blockbuster potential in small CHF study

Mesoblast is taking center stage today at the American Heart Association's annual meeting with some impressive new data from a small mid-stage study of its stem cell therapy--Revascor--for heart failure. While only recruiting 45 patients for the trial, patients suffering from congestive heart failure demonstrated an 80% drop in the risk of further cardiac events. And while the treatment is still some years away from potential commercialization, analysts were pointing to the therapy's blockbuster potential if late-stage studies back up the early results.

Bell Potter Securities analyst Stuart Roberts, who has already touted the treatment's ability to rebuild heart muscle while improving blood flow, noted that this is the most detailed data yet seen on a treatment built out of mesenchymal stem cells, according to a report in Bloomberg. He added: "Applications in heart failure, in heart attacks and in chronic angina represent multibillion-dollar market opportunities."

Australia's Mesoblast has clearly impressed Cephalon ($CEPH) as well. The company, recently acquired by Teva ($TEVA), snagged a 20% stake in Mesoblast in a record $2 billion deal for Revascor late last year. Its U.S. president has called the treatment "potentially transformational."

- here's the article from Bloomberg