** Shares of inflammatory disease drug maker Mesoblast MSB.AX rise as much as 5.1% to A$3.07, their highest level since February 10

** Bell Potter lifts FY26 revenue forecast 38% to A$108 mln ($71.28 mln) after drug Ryoncil's Sept quarter gross revenue of A$21.5 mln beat estimates

** Brokerage expects Ryoncil revenues to rise each quarter, sees Sept quarter net revenue at A$19.1 mln

** Expects positive 1H26 EBITDA and equity-based remuneration, operating cash surplus likely by 4Q26

** Stock down 3.2% YTD, including the session's moves

($1 = 1.5152 Australian dollars)

(Reporting by Anjali Singh in Bengaluru)

((anjali.singh2@thomsonreuters.com;))