On Thursday morning, biotech company Mesoblast Limited (NASDAQ:MESO) released data from a phase 3 clinical trial for one of its leading pipeline candidates, rexlemestrocel-L. Investors seem to be impressed with this data since the company's shares are rising sharply as a result. As of 1:25 p.m. EST, Mesoblast Limited's stock was up by 8.7%, after jumping by as much as 18% earlier today.
In a phase 3 clinical trial that enrolled more than 400 patients with chronic low back pain due to degenerative disc disease (DDD), a single injection of rexlemestrocel-L reduced low back pain significantly for at least two years. The best results were obtained when the treatment was administered early in the disease process. These results indicate that rexlemestrocel-L may provide a non-opioid alternative for those suffering from low back pain due to DDD. Of note, chronic low back pain accounts for 50% of opioid prescriptions, and amid an ongoing opioid crisis, regulators are actively looking for substitute therapies.
According to Mesoblast Limited, more than 30 million people in the U.S. suffer from low back pain; DDD is one of the leading causes of this condition. What's more, there are few treatment options for patients dealing with chronic low back pain. Today's results are therefore great news for the healthcare company and its shareholders. If rexlemestrocel-L goes on to receive the regulatory green light in this indication, it will likely experience a smashing success in the market.
It is also worth noting that last month, Mesoblast Limited reported results from a phase 3 trial that showed that a single dose of rexlemestrocel-L reduced heart attacks and strokes in patients suffering from chronic heart failure. Both of these opportunities could turn rexlemestrocel-L into a cash cow for Mesoblast Limited.