Mesoblast Ltd (ASX: MSB) shares are soaring 5.26% in intraday trading on Tuesday, as investors react positively to recent developments and a bullish broker report. The biotechnology company's stock price jump comes amid growing optimism surrounding the launch of its lead product, Ryoncil, in the United States.

The surge in Mesoblast's share price can be attributed to several factors. Firstly, the company has successfully launched Ryoncil, a treatment for steroid-refractory acute graft versus host disease (aGVHD) in children, with the first patients treated in late March. Importantly, Mesoblast has made significant progress on the reimbursement front, with the product now included in major US drug pricing compendia and a National Drug Rebate Agreement (NDRA) secured with Medicare, potentially opening access to around 40% of the insured pediatric population in the US.

Adding to the positive sentiment, leading broker Bell Potter has maintained a speculative buy rating on Mesoblast shares with a price target of $3.40, implying potential upside of over 100%. The broker highlights the company's strong financial position, with US$200 million in cash and ample Ryoncil inventory, suggesting no immediate need for a capital raise. While the stock remains a speculative investment, the market appears to be responding favorably to the company's progress and future potential in the rapidly evolving biotech sector.