Mesoblast Ltd (MESO) shares rallied Friday after the biotech company delivered impressive revenue numbers for its flagship cell therapy, demonstrating that niche treatments can still generate meaningful commercial traction.

The Revenue Story

Mesoblast reported $35.1 million in gross revenue from Ryoncil (remestemcel-L-rknd) for the quarter ending December 31, 2025. That's a 60% increase from the September quarter, which is the kind of sequential growth that gets investors excited.

Ryoncil holds a unique position in the market. It's the first mesenchymal stromal cell therapy ever approved by the FDA, and it remains the only FDA-approved treatment for children under 12 suffering from steroid-refractory acute graft-versus-host disease. That's a serious condition that affects pediatric patients who've undergone bone marrow transplants, and until Ryoncil came along, there weren't many good options.

What makes this particularly interesting is where the company is headed next. Ryoncil is now advancing through trials as a second-line treatment option for adults with the same condition. The adult market is roughly three times larger than the pediatric segment, which means the revenue opportunity could expand considerably if the trials succeed and the FDA grants approval.

Financial Positioning

The revenue growth comes at a time when Mesoblast has been working to strengthen its balance sheet. The company recently locked in a $125 million financing facility with its largest shareholder, reducing its cost of capital and providing more flexibility for commercial partnerships and ongoing development efforts.

Technical Picture

From a technical standpoint, Mesoblast is showing solid momentum. The stock is trading 11.2% above its 20-day simple moving average, 21.7% above its 50-day SMA, and 44.4% above its 200-day SMA. Those numbers suggest sustained upward pressure.

The relative strength index sits at 64.96, which is neutral territory but getting close to overbought levels. That means momentum is strong, but traders might want to watch for potential pullbacks as the stock approaches typical overbought thresholds.

The MACD indicator is currently below its signal line, suggesting some near-term bearish pressure. This could indicate that recent momentum might be cooling off, and traders should keep an eye on this for potential trend shifts.

Key support sits at $17.50. If the stock tests that level, it could signal a reversal or trend change. Without a clearly defined resistance level, the stock may continue climbing, though breaking below support could trigger a more significant decline.

A golden cross occurred in August when the 50-day SMA crossed above the 200-day SMA, typically a signal of longer-term bullish trends. Over the past 12 months, MESO has gained 23.20%, reflecting strong longer-term performance.

Mesoblast shares were up 5.23% at $20.91 at the time of publication Friday, trading near the 52-week high of $21.00.