Mesoblast Limited (ASX:MSB) Successful Bone Marrow Regeneration In Cancer Patients Using Cord Blood Expanded By Proprietary Stem Cells

Melbourne, Nov 6, 2009 AEST (ABN Newswire) - Mesoblast Limited's (ASX:MSB)(PINK:MBLTY) today announced successful results from the first 18 patients receiving a bone marrow transplant using umbilical cord blood expanded by the patented allogeneic, or "off-the-shelf", Mesenchymal Precursor Cells (MPCs).

Mesoblast's United States-based associate company Angioblast Systems Inc. is conducting the trial at the University of Texas M. D. Anderson Cancer Center, Department of Stem Cell Transplantation and Cellular Therapy. The US National Institutes of Health (NIH) has funded treatment in up to 30 patients.

Executive Director Professor Silviu Itescu told institutional investors attending the UBS Healthcare Conference in Sydney today that the Company's objective is to develop a therapy that results in bone marrow reconstitution as effectively as unrelated adult bone marrow, but without the potentially life-threatening complication of graft-versus-host disease which occurs in as many as 60% of patients.

Professor Itescu said the proprietary MPCs expanded haematopoietic stem cells in umbilical cord blood by approximately 40-fold. In patients receiving MPC-expanded cord blood, the median time to neutrophil recovery was 16 days and to platelet recovery 38 days, compared with approximately 30 days and over 90 days, respectively, in published reports of patients transplanted with an unexpanded cord. To date, only two patients have developed Grade III/IV graft-versus-host disease, compared with approximately 40% in published reports of patients transplanted with unexpanded cord blood.

"By increasing the overall success rate of an allogeneic bone marrow transplant while reducing the risk of graft-versus-host disease, our technology has the potential to lower the risk of infections, bleeding, and death in critically ill patients with haematologic malignancies following chemotherapy," Professor Itescu said.

The MPC product used in this trial is being developed under a US Food and Drug Administration (FDA) orphan drug designation granted to Angioblast for expanding haematopoietic stem and progenitor cell numbers in patients with haematologic malignancies.

In view of the important nature of the unmet medical need, Angioblast will seek to accelerate product registration in the US, Europe and Australia.

"This product has the potential to significantly shorten our timetable to commercialisation and early revenues," added Professor Itescu.

About Orphan Drug Designation

Orphan drug designation is reserved for therapies which are being developed for conditions affecting up to 200,000 patients annually in the US, and allows for an accelerated review process by the FDA, seven-year market exclusivity in the US upon obtaining marketing authorisation, tax benefits, and exemption from user fees.

Contact

Julie Meldrum Corporate Communications Director Mesoblast Limited Tel: +61-3-9639-6036 Mob: +61-419-228-128 Email: julie.meldrum@mesoblast.com www.mesoblast.com