Mesoblast Ltd (MSB)
I hold a few MSB & obviously have enjoyed a good week. With high risk, high volatility stocks like this how do you trade them? i.e do you take some money off the table or in this case, with FDA approval held, let them run. Thanks
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Answer
Hi Ian,
In a general sense, we are not big investors in Biotech’s, it is a very volatile and at times binary space depending on announcements such as the one by MSB this week.
- MSB shares rocketed on Thursday after the US regulators approved its first commercial product in its 20-year history.
- The US FDA approved its cell therapy, Ryoncil, to treat children for complications that can occur during bone marrow transplants.
- However the main goal financially for MSB is cell therapies to treat heart disease which could be worth billions.
In cases such as this, we would generally look to take part profit, hopefully bringing back our initial capital, and wait for the next round of news.
