Mesoblast Limited (NASDAQ: MESO) has inked a collaboration agreement with Novartis for the development, making, and commercialization of remestemcel-L. The firms have reported that after joining forces their main focus is to produce the cure for Acute Respiratory distress syndrome (ARDS) and COVID-19.
Through this partnership, Mesoblast is planning to reach as many patients as possible to provide them the potential cure of ARDS. Novartis is an expert in moving from clinical to market scale quickly, so it would help Mesoblast to market its innovative medicines. Looking at the financial consideration, Novartis will pay the upfront payment of US$50 million. It also includes the equity payment of US$25 million.