Investors have been keenly watching these two healthcare stocks of potential growth companies. With their accomplishments these have become among the best growth stocks to buy now
Mesoblast Limited (ASX: MSB)
Mesoblast Limited (ASX: MSB) has made significant advancements with its regenerative cell therapy, Revascor® (rexlemestrocel-L), which has been granted the Regenerative Medicine Advanced Therapy (RMAT) designation by the U.S. Food and Drug Administration (FDA) for treating children with congenital heart disease, specifically hypoplastic left heart syndrome (HLHS). This designation follows the therapy’s earlier Rare Pediatric Disease Designation (RPDD) and Orphan Drug Designation (ODD). Revascor, an allogeneic cell therapy, has shown promising results in improving heart function in children with HLHS. In a clinical trial, a single intramyocardial administration of Revascor resulted in significantly better heart growth and volume changes in children with HLHS, potentially increasing the success of surgical correction and reducing the risks associated with this life-threatening condition.
In addition to its pediatric heart disease applications, Mesoblast has also reported new findings from the DREAM-HF trial, published in the European Journal of Heart Failure. This study highlighted the positive effects of Revascor in high-risk patients with ischemic heart failure and inflammation. The results showed that a single injection of Revascor reduced cardiovascular deaths by up to 80% in patients with high inflammation and ischemic heart failure. The therapy also significantly reduced the incidence of major cardiovascular events, such as heart attacks and strokes, thereby demonstrating its potential as a disease-modifying treatment for this high-risk patient group.
Mesoblast is pursuing approval pathways for Revascor across both pediatric and adult heart failure indications, with ongoing support from the FDA for an accelerated approval process. The company’s innovative approach to regenerative medicine is further reinforced by its strong intellectual property portfolio, including U.S. patents for the use of mesenchymal precursor cells in treating graft-versus-host disease (GVHD). With a solid cash position and potential future revenue from FDA approvals, Mesoblast is well-positioned to continue advancing its transformative therapies for serious, unmet medical needs.
Clarity Pharmaceuticals Limited (ASX: CU6)
Clarity Pharmaceuticals Limited (ASX: CU6) announced a significant expansion in its pipeline with the development of a novel fibroblast activation protein (FAP)-targeted radiopharmaceutical, SAR-bisFAP. This product leverages copper isotopes for both diagnostic imaging and targeted cancer treatment. FAP is found on cancer-associated fibroblasts, which are present in a wide variety of cancers, such as breast, colorectal, pancreatic, lung, brain, and ovarian cancers. The SAR-bisFAP shows promising pre-clinical results, demonstrating strong tumor targeting, retention, and improved pharmacokinetics compared to other FAP-targeted radiopharmaceuticals currently in development. Clarity’s SAR Technology, which combines copper isotopes with a leading FAP inhibitor, is key to the product's success, potentially opening up a broad pan-cancer opportunity for both imaging and treatment.
In addition, Clarity recently completed the last patient assessment in its Phase II diagnostic trial, DISCO, for the SARTATE imaging product in patients with neuroendocrine tumors (NETs). The trial compared the performance of Clarity's 64Cu-SARTATE with the current standard of care, 68Ga-DOTATATE. This trial, which included patients with gastroenteropancreatic NETs, showed positive results, leading to an early closure of recruitment. The results are expected to support the planning of a Phase III trial, helping to establish 64Cu-SARTATE as a valuable diagnostic tool for NETs, a cancer with limited treatment options and a high unmet need.
Clarity is one of the high growth stocks having reported good financial performances by ending at $123.7 million cash balance as of 30 September 2024. The company anticipates receiving an R&D tax incentive of around $11 million for FY24, which bolsters its financial position. With this solid foundation, Clarity has a clear runway to continue funding its research and development efforts, including its promising trials and pipeline, until at least 2026. Additionally, the market potential for its products, particularly those targeting prostate cancer and neuroendocrine tumors, continues to grow, with significant opportunities in both diagnostic imaging and therapeutic applications.
Source: Company’s Report
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