Mesoblast Ltd (MSB.AU) shares skyrocketed 16.93% in Friday's trading session, reaching their highest level since February 13. The surge came after the company announced that its key drug, Ryoncil, received a U.S. Medicare J-code, a development that significantly enhances the drug's reimbursement prospects and patient accessibility.

Ryoncil is Mesoblast's treatment for steroid-refractory acute graft versus host disease in pediatric patients, a condition that can occur after blood cell transplants. The drug represents a crucial part of Mesoblast's product portfolio, addressing a serious medical need in transplant recipients.

The U.S. Medicare J-code approval marks a significant milestone for Ryoncil, as it streamlines billing and payment processes for healthcare providers. This development is expected to facilitate broader patient access to the treatment and potentially boost Mesoblast's revenue streams. The market's enthusiastic response underscores the importance of this regulatory advancement, positioning Mesoblast for what could be its strongest week since mid-July.