Mesoblast (ASX:MSB) entered an agreement with the US Centers for Medicare & Medicaid Services, enabling access to its US Food and Drug Administration-approved therapy, Ryoncil, according to a Monday filing with the Australian bourse.

The agreement ensures coverage for about 40% of US children with steroid-refractory acute graft versus host disease, with mandatory coverage starting July 1, the filing said.

The therapy is available to both Medicaid and privately insured children, and the first treatments are set to start this week, the filing added.

Shares of the firm fell almost 1% in recent Monday trade.