Mesoblast will use the proceeds of the agreement to support operational and regulatory initiatives across multiple products leading up to late-stage meetings with the U.S. Food and Drug Administration (FDA), which are planned for the second and third quarter of 2021.

The funds will also be used to invest in the commercial supply of remestemcel-L ahead of potential regulatory approval. Remestemcel-L is an investigational therapy consisting of culture-expanded mesenchymal stromal cells derived from the bone marrow. It is being developed for inflammatory diseases in children and adults, including steroid refractory acute graft versus host disease and moderate to severe acute respiratory distress syndrome.

The company also plans to advance the manufacturing and development of its rexlemestrocel-L platform for chronic heart failure and chronic low back pain due to degenerative disc disease, following the completion of phase III clinical trials. Rexlemestrocel-L is an allogeneic mesenchymal precursor cell therapy.