Mesoblast Ltd's stock price dropped sharply by 5.41% during intraday trading on Thursday, as investors reacted to the company's latest quarterly financial update.

The decline came shortly after Mesoblast reported quarterly net revenues of $30.3 million for its Ryoncil product. Market participants appeared to be disappointed with this revenue figure, leading to selling pressure on the stock.

While Mesoblast continues to advance its regenerative medicine pipeline, including ongoing clinical trials for various conditions, the immediate market response focused on the disclosed quarterly performance of its commercialized product.