** ASX-listed Mesoblast MSB.AX pares early surge to trade 8.1% higher at A$2.8 by midday in Sydney, still among the top ASX200 .AXJO gainers while the benchmark edges lower

** Inflammatory diseases' medicine maker reports Ryoncil drug's rev increasing 66% QoQ

** Ryoncil is used to treat steroid-refractory acute graft versus host disease, a condition that can occur after blood cell transplant, in paediatric patients

** Over 8.3 million shares traded, 1.5x of the 30-day avg

** Stock down 10.3% including current session on a YTD basis

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))