Shares of Mesoblast Ltd (ASX: MSB) surged 5.26% in Tuesday's trading session, following positive developments in the company's commercialization efforts for its lead product, Ryoncil, and an optimistic outlook from a top broker.

The biotech company has made significant strides in launching Ryoncil, its treatment for steroid-refractory acute graft versus host disease (aGVHD) in children, in the United States. Key achievements include the product's inclusion in major US drug pricing compendia and a National Drug Rebate Agreement (NDRA) with Medicare, potentially opening access to approximately 40% of the insured pediatric population in the US.

Adding to the positive sentiment, Bell Potter, a leading broker, has maintained a speculative buy rating on Mesoblast shares with a price target of $3.40, suggesting a potential upside of over 100%. The broker cited the company's strong financial position, with US$200 million in cash and ample inventory, as factors supporting the Ryoncil launch without the need for additional capital raising. While acknowledging the speculative nature of the investment, Bell Potter's optimistic stance appears to have bolstered investor confidence in Mesoblast's future prospects.