Mesoblast Ltd's stock surged 5.12% during intraday trading on Wednesday, following the company's announcement of a key development milestone for its chronic low back pain treatment.

The biopharmaceutical company announced it has achieved the patient recruitment target in its pivotal Phase 3 trial of rexlemestrocel-L for chronic low back pain due to degenerative disc disease. This milestone marks significant progress for the drug candidate, with top-line results expected in mid-2027.

Positive results from this study, designed to confirm earlier findings of pain reduction and lower opioid use, are intended to support a Biologics License Application (BLA) filing with the U.S. FDA in the third quarter of 2027. The company has highlighted this indication as a major commercial opportunity, with potential peak-year revenues exceeding USD 10 billion.