Shares in stem cell treatment biotech Mesoblast are tanking.
A short time ago, the shares were down 22% to $1.485.
The biotech came out of a trading halt, saying it has regained full rights to its experimental treatment for advanced chronic heart failure.
The company says it regained the rights with no financial consideration to Teva Pharmaceutical Industries Ltd. Teva is a substantial shareholder in Mesoblast.
Mesoblast aims to complete a Phase 3 heart failure trial within 18 months.
CEO Silviu Itescu sayus the company has been offered a finance facility to meet the funding requirements for the program.
“The growing body of clinical evidence validates our strong conviction in the potential of our product candidate MPC-150-IM to change the way that advanced heart failure is treated,” Dr Itescu says.
“Mesoblast now has unencumbered rights to partner with a leading cardiovascular company with a commitment to heart failure product commercialization.“