Mesoblast Ltd's stock surged 5.22% during intraday trading on Wednesday, following a series of announcements regarding a significant strategic acquisition.

The company acquired a startup holding an exclusive worldwide license to patented Chimeric Antigen Receptor (CAR) technology for genetically engineered mesenchymal stromal cell (MSC) products. This platform, developed at the Mayo Clinic, is designed to improve MSC targeting to inflamed tissue, thereby boosting potency in treating inflammatory diseases.

Key near-term development focuses include CAR-MSC candidates for conditions such as ulcerative colitis and Crohn's disease, with future plans for candidates engineered to target B-cell autoimmune diseases like lupus nephritis. The Mayo Clinic will also provide in-kind support and GMP manufacturing for the technology. The consideration for the acquisition was paid via the issuance of ASX ordinary shares, highlighting a strategic expansion of Mesoblast's regenerative medicine portfolio.