Mesoblast Limited
(ASX:MSB) has announced it has entered into an equity purchase agreement with Mallinckrodt Pharmaceuticals to further develop 2 of its lower back pain treatments.
Under the terms of the agreement Mallinckrodt will have an exclusive period of 9 months to execute on commercial and development agreements in all territories bar Japan and China.
The company will purchase 4.99 percent of Mesoblast’s ordinary shares at just under $1.50 per share.
Both treatments are currently being evaluated in separate phase 3 trials, with positive results possibly sufficient to accelerate FDA approval in the US.
Mesoblast Limited reported a net loss of $4.13 million at 30 June 2016.
