Why Mesoblast Stock Is Tanking Today

Shares of Mesoblast Limited (NASDAQ: MESO) were tumbling 19.6% lower as of 12:41 p.m. EST on Tuesday. The big drop came after the company announced Monday evening that its off-the-shelf cell therapy candidate rexlemestrocel-L (Revascor) failed to meet the primary endpoint of a late-stage clinical study targeting the treatment of advanced chronic heart failure.

Mesoblast said that Revascor didn't achieve any reduction in recurrent non-fatal decompensated heart-failure events. Decompensated heart failure occurs when structural changes in the heart cause obvious symptoms. The problem was that this reduction was the primary endpoint of the company's late-stage study.

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Source Fool.com