US ambulatory network SurgCenter has grown to be arguably one of the largest Orthopedic outpatients network in the US.
Its original founding principal owner, just personally forked out over US$10 million to buy a discounted stake in Australian company Mesoblast. Amongst Mesoblast's four main present product pathways at the FDA, is a treatment for Chronic Lower Back Pain - its a poor title as more specifically, its an injectable stem cell therapy for Degenerative Disc Disease. Mesoblast made history getting knocked back at the FDA despite a 9-1 favourable vote by a pre-advisory Oncologic Drugs Advisory Committee (ODAC) board, on its GvHD treatment in 2020 (it also has heart and COVID pathways ongoing).
The founding principal of SurgCenter, a company that specialises in outpatient treatments, now owns 6.6% of the company (54 million shares) with today's reported 18 million share purchase. SurgCenter itself made a more formal 2021 capital injection (worth 60 million shares) into Mesoblast for 7% ownership last year.
The FDA recently granted Mesoblast a Regenerative Medicine Advanced Therapy (RMAT) designation to Rexlemestrocel-L for its "treatment of chronic low back pain (CLBP) associated with disc degeneration."
https://www.fool.com.au/2023/02/09/mesoblast-share-price-soars-11-on-fda-update/
One could be forgiven for following the breadcrumbs, and thinking the informed (insider) buying might foreshadow a large partnership from two parties able to commercially benefit from a massive US wide application of an injectable therapy that could be paradigm changing in a disease that effects approximately 40% of adults over age 40 (at least one degenerated vertebral disc) and 80% of adults by the age of 80. Chronic lower back pain also being the number one ailment for prescriptions of Opioids in the USA, the endemic effects and consequences of which, are well reported.
The implications of this insider buying not only for Mesoblast but other Aussie companies offering easily applied orthopaedic treatments - Mesoblast is dual listed on NASDAQ and the ASX. As I recently reported on other threads, big US Pharma is starting to sniff around Aussie bio-techs (BioHorizons deal with Orthocell in June 2022) and with the (understandable) plummeting of pre-positive cash flow bio-tech stocks on financing concerns, there is some very, very cheap Aussie biotech IP out there in orthopaedic cellular/injectable treatment companies, that might interest other big players in the US and Europe; Cynata doing a large phase 3, government funded, Sydney University ran stem cell trial in knee OA; FDA device approved Orthocell that has collaborated with Johnson and Johnson in an autologous tendon stem cell trial; Paradigm has a partnership with NFL Alumni; and Regeneus, that has just partnered with private US company Cambium Medical Technologies, which two Investigational New Drug (IND) Application approvals from the FDA....amongst others.
[link] [comments] https://www.reddit.com/r/stocks/comments/136jqec/surgcenter_founder_personally_buys_18_million/
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