Cynata Therapeutics' (ASX:CYP) acute graft-versus-host disease (aGvHD) drug candidate, CYP-001's potential has been reinforced by Mesoblast's (ASX:MSB) fiscal first half results, said Euroz Hartleys in a Monday note.

Mesoblast's results showed its product, Ryoncil, which is a mesenchymal stem cell therapy approved by the US FDA for the treatment of paediatric (aGvHD), generated $49 million in net sales during the period and guided towards full-year net sales of $110 million to 120 million.

CYP-001 is currently in a phase 2 trial, with topline results expected in June, the note added.

The research firm believes that CYP-001 could attract significant commercial interest if it successfully replicates its Phase 1 results, which showed about 86% overall response rate at Day 28 versus about 62% for standard of care.

Euroz Hartleys has maintained a speculative buy rating on Cynata Therapeutics with a price target of AU$0.90.