7 Best ASX Stocks To Invest In Right Now

5. Mesoblast (NASDAQ:MESO)  

Number of Hedge Fund Investors in Q2 2024: 3  

Mesoblast (NASDAQ:MESO) is a biotechnology company based in Melbourne, specializing in regenerative medicine and cell-based therapies. The company is advancing two key products, rexlemestrocel-L (Revascor) and remestemcel-L (Ryoncil), which target significant unmet medical needs and are in advanced development stages which will transform treatments for severe inflammatory and cardiovascular diseases.

Rexlemestrocel-L (Revascor) is being developed to treat chronic heart failure and chronic low back pain, the FDA has granted an Orphan Drug Designation to rexlemestrocel-L for its use in treating pediatric congenital heart diseases. After two previous FDA rejections, the company resubmitted its biologics license application (BLA) for remestemcel-L (Ryoncil) as a treatment for pediatric patients with steroid-refractory acute graft-versus-host disease (SR-aGVHD).

The FDA accepted the resubmission on July 24 and set a Prescription Drug User Fee Act (PDUFA) decision date of January 7, 2025. If approved, remestemcel-L would be the first treatment available for SR-aGVHD for children under 12. The drug has also been designated for Rare Pediatric Diseases. Although the SR-aGVHD market is relatively small, remestemcel-L has the potential to become a leading treatment option in this critical niche. The approval for remestemcel-L in SR-aGVHD could also significantly enhance Mesoblast’s valuation.

In the second quarter, 3 hedge funds held shares in Mesoblast (NASDAQ:MESO), with total stakes worth $1.18 million. Marshall Wace LLP is the largest shareholder, holding $562,343 worth of stock as of June 30. Industry analysts maintain a consensus Buy rating for Mesoblast, with an average price target of $11, representing a 56% upside potential from its current levels.