Mesoblast Ltd (NASDAQ:MESO) shares are trading higher on Friday after the company reported strong year‑over‑year growth in December quarter sales of its flagship therapy, Ryoncil.
Mesoblast stock is approaching key resistance levels. Why are MESO shares at highs?
What Happened: Mesoblast posted $35.1 million in gross revenue from Ryoncil (remestemcel‑L‑rknd) for the quarter ending Dec. 31, 2025, representing a 60% jump from the previous quarter ending Sept. 30.
Ryoncil is the first mesenchymal stromal cell therapy ever approved by the FDA, and it remains the only FDA‑approved treatment for children under 12 with steroid‑refractory acute graft‑versus‑host disease. The therapy is now moving into a crucial trial as a second‑line option for adults with the same condition, a market roughly three times larger than the pediatric segment.
The revenue boost comes as Mesoblast continues to shore up its financial position. The company recently secured a $125 million facility with its largest shareholder, lowering its cost of capital and giving it more flexibility for partnerships and commercialization efforts.
Technical Analysis: Mesoblast is currently showing a strong bullish setup, trading well above its key moving averages. The stock is positioned 11.2% above its 20-day SMA, 21.7% above its 50-day SMA and an impressive 44.4% above its 200-day SMA, indicating solid upward momentum.
The RSI is currently at 64.96, which is in neutral territory but approaching overbought levels. This suggests that while the stock has momentum, traders should be cautious as it nears the overbought threshold, which could lead to a pullback.
MACD is below its signal line, indicating bearish pressure in the short term. This could suggest that the recent upward momentum might be losing steam, and traders should watch for any changes in this indicator for potential trend shifts.
Key support is at $17.50, and if this level is tested, it could signal a potential reversal or trend change. Without a defined resistance level, the stock may continue to push higher, but a breach of support could lead to a more significant decline.
The golden cross in August, where the 50-day SMA crossed above the 200-day SMA, marked a significant shift in trend strength. This crossover typically signals a longer-term bullish trend, which traders should consider when evaluating the stock’s performance.
Over the past 12 months, MESO has gained 23.20%, reflecting a strong longer-term trend. This performance highlights the stock’s recovery and potential for continued growth, especially given its current positioning near the 52-week high.
MESO Price Action: Mesoblast shares were up 5.23% at $20.91 at the time of publication on Friday. The stock is trading near its 52-week high of $21.00, according to Benzinga Pro.
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