Mesoblast (NASDAQ:MESO) reported a breakout quarter for its flagship cellular medicine, Ryoncil, with sales jumping 60% to reach $35.1 million for the period ended December 31, 2025.
The revenue surge was paired with a sweeping $125 million refinancing deal that significantly lowers the company's cost of capital and frees up its intellectual property for future partnerships.
The record quarterly revenue follows the 2024 FDA approval of Ryoncil (remestemcel-L), the first-ever mesenchymal stromal cell (MSC) product cleared by the agency.
While currently indicated for pediatric patients with steroid-refractory acute graft-versus-host disease (SR-aGvHD), Mesoblast confirmed it is now initiating a pivotal trial in adults.
The move targets a second-line treatment market that the company estimates is three times larger than the pediatric segment, representing a billion-dollar annual opportunity.
The financial restructuring centers on a $125 million, five-year interest-only facility provided by the company’s largest shareholder, Dr. Gregory George.
The 8% fixed-rate credit line allowed Mesoblast to immediately retire its high-interest senior secured loan from Oaktree Capital and partially repay a subordinated royalty facility.
Crucially, the new arrangement does not encumber the company's material assets or IP, a rare concession in biotech debt that permits Mesoblast to pursue additional licensing deals without lender interference.
The company expects to fully retire the remainder of its legacy royalty facility by mid-2026 using its accelerating cash flow.
With the debt overhang cleared and Ryoncil gaining rapid clinical traction, Mesoblast is positioning itself as a rare "commercial-stage" winner in the volatile regenerative medicine sector.