Document and Entity Information
Document and Entity Information | 6 Months Ended |
Dec. 31, 2020 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Entity Registrant Name | MESOBLAST LTD |
Entity Central Index Key | 0001345099 |
Current Fiscal Year End Date | --06-30 |
Entity Address, Address Line One | Level 38 |
Entity Address, Address Line Two | 55 Collins Street |
Entity Address, City or Town | Melbourne |
Entity Address, Postal Zip Code | 3000 |
Entity Address, Country | AU |
Entity File Number | 001-37626 |
Consolidated Income Statement (
Consolidated Income Statement (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,241 | $ 2,206 | $ 3,546 | $ 19,254 |
Research & development | (14,238) | (14,154) | (33,516) | (26,543) |
Manufacturing commercialization | (6,450) | (5,145) | (18,374) | (7,843) |
Management and administration | (7,867) | (6,766) | (15,546) | (12,230) |
Fair value remeasurement of contingent consideration | 1,462 | (595) | 16,569 | (882) |
Other operating income and expenses | 296 | 143 | 395 | 375 |
Finance costs | (1,062) | (2,542) | (3,966) | (6,400) |
Loss before income tax | (25,618) | (26,853) | (50,892) | (34,269) |
Income tax (expense)/benefit | (74) | 2,269 | 656 | 4,202 |
Loss attributable to the owners of Mesoblast Limited | $ (25,692) | $ (24,584) | $ (50,236) | $ (30,067) |
Losses per share from continuing operations attributable to the ordinary equity holders of the Group: | ||||
Basic - losses per share | $ (4.38) | $ (4.60) | $ (8.60) | $ (5.82) |
Diluted - losses per share | $ (4.38) | $ (4.60) | $ (8.60) | $ (5.82) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Comprehensive Income [Abstract] | ||||
Loss for the period | $ (25,692) | $ (24,584) | $ (50,236) | $ (30,067) |
Items that may be reclassified to profit and loss | ||||
Financial assets at fair value through other comprehensive income | (53) | (280) | 28 | (645) |
Exchange differences on translation of foreign operations | 904 | 287 | 1,312 | (45) |
Other comprehensive (loss)/income for the period, net of tax | 851 | 7 | 1,340 | (690) |
Total comprehensive losses attributable to the owners of Mesoblast Limited | $ (24,841) | $ (24,577) | $ (48,896) | $ (30,757) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (unaudited) - USD ($) $ in Thousands | Total | Issued Capital | Share Option Reserve | Investment Revaluation Reserve | Foreign Currency Translation Reserve | Retained Earnings/(Accumulated Losses) |
Beginning balance at Jun. 30, 2019 | $ 481,052 | $ 910,405 | $ 80,034 | $ 17 | $ (39,413) | $ (469,991) |
Adjustment on adoption of IFRS 16 (net of tax) at Jun. 30, 2019 | (827) | (827) | ||||
Equity, adjusted opening balance at Jun. 30, 2019 | 480,225 | 910,405 | 80,034 | 17 | (39,413) | (470,818) |
Loss for the period | (30,067) | (30,067) | ||||
Other comprehensive income/(loss) | (690) | (645) | (45) | |||
Total comprehensive profit/(loss) for the period | (30,757) | (645) | (45) | (30,067) | ||
Transactions with owners in their capacity as owners: | ||||||
Contributions of equity net of transaction costs | 48,889 | 48,889 | ||||
Transactions with owners in their capacity as owners | 48,889 | 48,889 | ||||
Transfer of exercised options | 341 | (341) | ||||
Fair value of share-based payments | 2,447 | 2,447 | ||||
Increase (decrease) in equity | 2,447 | 341 | 2,106 | |||
Ending balance at Dec. 31, 2019 | 500,804 | 959,635 | 82,140 | (628) | (39,458) | (500,885) |
Beginning balance at Sep. 30, 2019 | 475,148 | 910,942 | 80,600 | (348) | (39,745) | (476,301) |
Loss for the period | (24,584) | (24,584) | ||||
Other comprehensive income/(loss) | 7 | (280) | 287 | |||
Total comprehensive profit/(loss) for the period | (24,577) | (280) | 287 | (24,584) | ||
Transactions with owners in their capacity as owners: | ||||||
Contributions of equity net of transaction costs | 48,590 | 48,590 | ||||
Transactions with owners in their capacity as owners | 48,590 | 48,590 | ||||
Transfer of exercised options | 103 | (103) | ||||
Fair value of share-based payments | 1,643 | 1,643 | ||||
Increase (decrease) in equity | 1,643 | 103 | 1,540 | |||
Ending balance at Dec. 31, 2019 | 500,804 | 959,635 | 82,140 | (628) | (39,458) | (500,885) |
Beginning balance at Jun. 30, 2020 | 549,326 | 1,051,450 | 85,330 | (429) | (38,267) | (548,758) |
Loss for the period | (50,236) | (50,236) | ||||
Other comprehensive income/(loss) | 1,340 | 28 | 1,312 | |||
Total comprehensive profit/(loss) for the period | (48,896) | 28 | 1,312 | (50,236) | ||
Transactions with owners in their capacity as owners: | ||||||
Contributions of equity net of transaction costs | 9,807 | 9,807 | ||||
Transactions with owners in their capacity as owners | 9,807 | 9,807 | ||||
Tax credited / (debited) to equity | 74 | 74 | ||||
Transfer of exercised options | 4,282 | (4,282) | ||||
Fair value of share-based payments | 8,420 | 8,420 | ||||
Increase (decrease) in equity | 8,494 | 4,282 | 4,212 | |||
Ending balance at Dec. 31, 2020 | 518,731 | 1,065,539 | 89,542 | (401) | (36,955) | (598,994) |
Beginning balance at Sep. 30, 2020 | 538,506 | 1,063,005 | 87,010 | (348) | (37,859) | (573,302) |
Loss for the period | (25,692) | (25,692) | ||||
Other comprehensive income/(loss) | 851 | (53) | 904 | |||
Total comprehensive profit/(loss) for the period | (24,841) | (53) | 904 | (25,692) | ||
Transactions with owners in their capacity as owners: | ||||||
Contributions of equity net of transaction costs | 1,452 | 1,452 | ||||
Transactions with owners in their capacity as owners | 1,452 | 1,452 | ||||
Tax credited / (debited) to equity | 74 | 74 | ||||
Transfer of exercised options | 1,082 | (1,082) | ||||
Fair value of share-based payments | 3,540 | 3,540 | ||||
Increase (decrease) in equity | 3,614 | 1,082 | 2,532 | |||
Ending balance at Dec. 31, 2020 | $ 518,731 | $ 1,065,539 | $ 89,542 | $ (401) | $ (36,955) | $ (598,994) |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Current Assets | ||
Cash & cash equivalents | $ 77,528 | $ 129,328 |
Trade & other receivables | 3,342 | 1,574 |
Prepayments | 9,588 | 5,646 |
Total Current Assets | 90,458 | 136,548 |
Non-Current Assets | ||
Property, plant and equipment | 3,237 | 2,293 |
Right-of-use assets | 7,176 | 7,978 |
Financial assets at fair value through other comprehensive income | 1,899 | 1,871 |
Other non-current assets | 3,210 | 3,311 |
Intangible assets | 581,330 | 581,601 |
Total Non-Current Assets | 596,852 | 597,054 |
Total Assets | 687,310 | 733,602 |
Current Liabilities | ||
Trade and other payables | 28,610 | 24,972 |
Provisions | 18,307 | 29,197 |
Borrowings | 41,571 | 32,455 |
Lease liabilities | 2,552 | 3,519 |
Total Current Liabilities | 91,040 | 90,143 |
Non-Current Liabilities | ||
Deferred tax liability | 730 | |
Provisions | 19,441 | 27,563 |
Borrowings | 49,086 | 57,023 |
Lease liabilities | 6,512 | 6,317 |
Deferred consideration | 2,500 | 2,500 |
Total Non-Current Liabilities | 77,539 | 94,133 |
Total Liabilities | 168,579 | 184,276 |
Net Assets | 518,731 | 549,326 |
Equity | ||
Issued Capital | 1,065,539 | 1,051,450 |
Reserves | 52,186 | 46,634 |
(Accumulated losses)/retained earnings | (598,994) | (548,758) |
Total Equity | $ 518,731 | $ 549,326 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Commercialization revenue received | $ 1,972 | $ 3,610 |
Upfront and milestone payments received | 17,500 | |
Government grants and tax incentives received | 17 | 1,499 |
Payments to suppliers and employees (inclusive of goods and services tax) | (59,357) | (37,119) |
Interest received | 16 | 413 |
Interest and other costs of finance paid | (2,771) | (2,788) |
Income taxes paid | (6) | (3) |
Net cash (outflows) in operating activities | (60,129) | (16,888) |
Cash flows from investing activities | ||
Investment in fixed assets | (488) | (612) |
Payments for licenses | (100) | |
Net cash (outflows) in investing activities | (488) | (712) |
Cash flows from financing activities | ||
Proceeds from issue of shares | 9,565 | 51,053 |
Payments for share issue costs | (905) | (2,164) |
Payments for lease liabilities | (1,480) | (695) |
Net cash inflows by financing activities | 7,180 | 48,194 |
Net (decrease)/increase in cash and cash equivalents | (53,437) | 30,594 |
Cash and cash equivalents at beginning of period | 129,328 | 50,426 |
FX gain/(losses) on the translation of foreign bank accounts | 1,637 | 328 |
Cash and cash equivalents at end of period | $ 77,528 | $ 81,348 |
Basis of preparation
Basis of preparation | 6 Months Ended |
Dec. 31, 2020 | |
Basis Of Preparation [Abstract] | |
Basis of Preparation | 1. Basis of preparation Mesoblast Limited is a for-profit entity for the purpose of preparing the financial statements. The condensed financial statements of Mesoblast Limited and its subsidiaries have been prepared in accordance with International Accounting Standard IAS 34 Interim Financial Reporting (i) Going concern For the six months ended December 31, 2020, the Group incurred a total comprehensive loss after income tax of $48.9 million and had net cash outflows from operations of $60.1 million. The Group held total cash and cash equivalents of $77.5 million as of December 31, 2020. As announced on February 26, 2021, the Group has commenced a proposed equity-based private placement to a targeted industry investor to fund operations. The placement will close in the first week of March, 2021 at which time cash proceeds will be received. Closing of the contract is subject to customary conditions. Proceeds from the offering will be used for working capital and to prepare for confirmatory trials in lead programs as per FDA requirements. Proceeds will enable continued investment in manufacturing for further clinical development and to optimize process development including 2D and 3D bioreactor technologies, in preparation for commercial scale manufacturing, as well as maintenance of minimum unrestricted cash balances as required under our loan agreements (refer to Note 5d). In addition, during the next twelve months, the Group intends to achieve cash inflows from existing strategic and financing partnerships, subject to the Group meeting future milestones and other performance conditions. Some or all of these cash inflows will be required for us to meet our forecast expenditure and continue as a going concern, although there is uncertainty related to our ability to access these cash inflows because the meeting of milestones and other performance conditions are not wholly within the Group’s control. Management and the directors believe that the Group will be successful in the above matters and, accordingly, have prepared the financial report on a going concern basis, notwithstanding that there is a material uncertainty that may cast significant doubt on our ability to continue as a going concern and that the Group may be unable to realize our assets and discharge our liabilities in the normal course of business. References to matters that may cast significant doubt about the Group’s ability to continue as a going concern also raise substantial doubt as contemplated by the Public Company Accounting Oversight Board (“PCAOB”) standards. (ii) New and amended standards adopted by the Group In the opinion of management, the interim financial data includes all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods. There were no new or amended standards adopted by the Group in the six months ended December 31, 2020. These interim financial statements follow the same accounting policies as compared to the June 30, 2020 consolidated financial statements and related notes as filed with the Australian Securities Exchange and the Securities and Exchange Commission. (iii) New accounting standards and interpretations not yet adopted by the Group There were no new accounting standards and interpretations not yet adopted by the Group for the December 31, 2020 reporting period. (iv) Use of estimates The preparation of these consolidated financial statements requires the Group to make estimates and judgments that affect the reported amounts of assets, liabilities, income and expenses and related disclosures. On an ongoing basis, the Group evaluates its significant accounting policies and estimates. Estimates are based on historical experience and on various market-specific and other relevant assumptions that the Group believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Impact of COVID-19 Estimates are assessed each period and updated to reflect current information, such as the economic considerations related to the impact that COVID-19 could have on the Group’s significant accounting estimates. COVID-19 has not led to a material deterioration in the Group’s financial circumstances, nor required the Group to utilize government support. The Group is facing some challenges from the pandemic. The Group’s current and potential future clinical trials have and may experience some delays given reduced capacity at hospitals for completing activities and impacts on patient mobility for treatments or final visits. In addition, health regulators may rate other treatments as higher priorities due to the crisis. |
Significant changes in the curr
Significant changes in the current reporting period | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Significant Changes In Current Reporting Period [Abstract] | |
Significant changes in the current reporting period | 2. Significant changes in the current reporting period (i) Significant events The financial position and performance of the Group was affected by the following events during the six months ended December 31, 2020. • In August 2020, the Oncologic Drugs Advisory Committee (“ODAC”) of the FDA voted in favor that available data from a single-arm Phase 3 trial and evidence from additional studies support the efficacy of remestemcel-L in pediatric patients with SR-aGVHD. Although the FDA considers the recommendation of the panel, the final decision regarding the approval of the product is made solely by the FDA, and the recommendations by the panel are non-binding. In November 2020, a Type A meeting was held with the FDA to discuss the review of the BLA for remestemcel-L. The current FDA review team have not agreed to accelerated or full approval. However, there was consensus with the review team on the proposed optimization of potency assays and on use of biomarkers to demonstrate the product’s bioactivity in-vivo. The Group intends to meet with the FDA through a well-established FDA process for continuing discussions on the potential for accelerated or full approval with a post-approval commitment to conduct an additional randomised controlled study in patients 12 years and older. • In August 2020, the Group amended the terms of the Hercules loan agreement to defer principal repayments to March 2021. In January 2021, as disclosed in Note 11, the Group amended the terms of the loan agreement to extend the interest-only period of the loan up to March 2022, subject to achieving certain milestones. Presentation at December 31, 2020 has not been changed as a result of this amendment. • In November 2020, the Group has entered into a worldwide license and collaboration agreement with Novartis for the development, manufacture, and commercialization of the Group’s mesenchymal stromal cell (MSC) product remestemcel-L, with an initial focus on the development of the treatment of acute respiratory distress syndrome (ARDS), including that associated with COVID-19. The closing of the license agreement is subject to certain conditions. The Group has enrolled 223 patients in its randomized controlled trial of remestemcel-L in ventilator-dependent patients with moderate to severe ARDS due to COVID-19 infection. Following the third interim analysis on the trial’s first 180 patients last month, the Data Safety Monitoring Board (DSMB) reported that there were no safety concerns but noted that the trial was not likely to meet the 30-day mortality reduction endpoint at the planned 300 patient enrolment. The trial was powered to achieve a primary endpoint of 43% reduction in mortality at 30 days for treatment with remestemcel-L on top of maximal care. The DSMB recommended that the trial complete with the currently enrolled 223 patients, and that all be followed-up as planned. Notably, the trial has not yet accrued data on the secondary endpoints, which include days alive off mechanical ventilation at 60 days post randomization, overall survival, days in intensive care, duration of hospitalization, and cardiac, neurological, and pulmonary organ damage. Additionally, measures of circulating cytokines and inflammatory markers will be evaluated. None of these were included in the interim analysis. As such, the trial will evaluate all 223 enrolled patients through 60 days of follow-up to study potential treatment effects on these outcomes. On closing of the agreement, Novartis will make a $50.0 million upfront payment including $25.0 million in equity. The Group may receive a total of $505.0 million pending achievement of pre-commercialization milestones. The Group may receive additional payments post-commercialization of up to $750.0 million based on achievement of certain sales milestones and tiered double-digit royalties on product sales. The Group will retain full rights and economics for remestemcel-L for graft versus host disease, and Novartis has an option to, if exercised, become the commercial distributor outside of Japan. At the date of this report, this agreement has not closed and therefore there is no accounting impact as of December 31, 2020. The agreement remains subject to certain closing conditions, including time to analyze the results from the COVID-19 ARDS trial. The Group is further assessing the ongoing accounting impact of this agreement. • In December 2020, the Group announced top-line results from the DREAM-HF Phase 3 randomized controlled trial of its allogeneic cell therapy rexlemestrocel-L in 537 patients with advanced chronic heart failure. Over a mean 30 months of follow-up, patients with advanced chronic heart failure who received a single endomyocardial treatment with rexlemestrocel-L on top of maximal therapies had 60% reduction in incidence of heart attacks or strokes and 60% reduction in death from cardiac causes when treated at an earlier stage in the progressive disease process. Despite significant reduction in the pre-specified endpoint of cardiac death, there was no reduction in recurrent non-fatal decompensated heart failure events, which was the trial’s primary endpoint. |
Loss before income tax
Loss before income tax | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Loss Before Income Tax [Abstract] | |
Loss before income tax | 3. Loss before income tax Three Months Ended December 31, Six Months Ended December 31, (in U.S. dollars, in thousands) Note 2020 2019 2020 2019 Revenue Commercialization revenue 2,191 1,969 3,480 3,841 Milestone revenue — — — 15,000 Interest revenue 5 237 21 413 Other revenue 45 — 45 — Total Revenue 2,241 2,206 3,546 19,254 Clinical trial and research & development (4,913 ) (8,225 ) (13,410 ) (13,827 ) Manufacturing production & development (5,910 ) (3,661 ) (17,678 ) (4,956 ) Employee benefits Salaries and employee benefits (7,586 ) (6,498 ) (14,767 ) (11,228 ) Defined contribution superannuation expenses (107 ) (91 ) (191 ) (166 ) Equity settled share-based payment transactions ( 1) (3,540 ) (1,643 ) (8,421 ) (2,447 ) Total Employee benefits (11,233 ) (8,232 ) (23,379 ) (13,841 ) Depreciation and amortization of non-current assets Plant and equipment depreciation (232 ) (115 ) (443 ) (220 ) Right of use asset depreciation (430 ) (356 ) (839 ) (707 ) Intellectual property amortization (387 ) (394 ) (770 ) (788 ) Total Depreciation and amortization of non-current assets (1,049 ) (865 ) (2,052 ) (1,715 ) Other Management & administration expenses Overheads & administration (1,929 ) (2,321 ) (3,746 ) (4,885 ) Consultancy (1,190 ) (1,016 ) (2,996 ) (2,161 ) Legal, patent and other professional fees (1,620 ) (1,087 ) (2,895 ) (3,979 ) Intellectual property expenses (excluding the amount amortized above) (711 ) (658 ) (1,280 ) (1,252 ) Total Other Management & administration expenses (5,450 ) (5,082 ) (10,917 ) (12,277 ) Fair value remeasurement of contingent consideration Remeasurement of contingent consideration 5(e)(iii) 1,462 (595 ) 16,569 (882 ) Total Fair value remeasurement of contingent consideration 1,462 (595 ) 16,569 (882 ) Other operating income and expenses Government grant revenue — — 17 — Foreign exchange gains/(losses) 296 143 378 375 Total Other operating income and expenses 296 143 395 375 Finance (costs)/gains Remeasurement of borrowing arrangements ( 2) 2,932 1,060 3,955 779 Interest expense (3,994 ) (3,602 ) (7,921 ) (7,179 ) Total Finance costs (1,062 ) (2,542 ) (3,966 ) (6,400 ) Total loss before income tax (25,618 ) (26,853 ) (50,892 ) (34,269 ) (1) Share-based payment transactions For the three and six months ended December 31, 2020 and 2019, the share-based payment transactions have been reflected in the Consolidated Income Statement functional expense categories as follows: Three Months Ended December 31, Six Months Ended December 31, (in U.S. dollars) 2020 2019 2020 2019 Research and development 2,298,879 650,488 5,134,601 970,168 Manufacturing and commercialization 170,859 86,336 365,175 139,916 Management and administration 1,069,753 906,310 2,920,952 1,336,848 Equity settled share-based payment transactions 3,539,491 1,643,134 8,420,728 2,446,932 (2) Change in comparative figures The Group routinely reviews the financial statements for opportunities to improve the quality of financial reporting. The Group identified an opportunity to enhance the presentation of the Remeasurement for borrowing arrangements within Finance (costs)/gains and Remeasurement for borrowing arrangements within Other operating income and expenses. The Group considered that changes in the carrying value of borrowings is primarily due to changes in our estimated future cash flows and key assumptions about the settlement of the borrowings and these line items in the Consolidated Income Statement should therefore be reported in aggregate, to provide more relevant information to the users of the financial statements. This change in presentation has been retrospectively applied to the three months ended December 31, 2019 and the six months ended December 31, 2019. The impact of the reclassification of the prior period financial statements is summarized below: Three Months Ended December 31, Six Months Ended December 31, 2019 2019 (in U.S. dollars, in thousands) Previously reported Currently reported Effect of change Previously reported Currently reported Effect of change Other operating income and expenses 440 — (440 ) 39 — (39 ) Finance costs 620 1,060 440 740 779 39 Revenue recognition Grünenthal arrangement In September 2019, the Group entered into a strategic partnership with Grünenthal for the development and commercialization in Europe and Latin America of the Group’s allogeneic mesenchymal precursor cell (“MPC”) product, MPC-06-ID, receiving exclusive rights to the Phase 3 allogeneic product candidate for the treatment of low back pain due to degenerative disc disease. The Group received a non-refundable upfront payment of $15.0 million in October 2019, on signing of the contract with Grünenthal. The Group received a milestone payment in December 2019 of $2.5 million in relation to meeting a milestone event as part of the strategic partnership with Grünenthal. The Group may receive up to an additional $127.5 million in payments if certain milestones are satisfied in relation to clinical, manufacturing, regulatory and reimbursement approval prior to product launch. The Group is further entitled to receive milestones payments based on regulatory and cumulative product sales milestones, as well as tiered double-digit royalties on product sales. The strategic partnership with Grünenthal includes a license of IP and the provision of development services. Under IFRS 15 Revenue from contracts with customers The standalone selling price for each performance obligation is not directly observable, so the Group has estimated the standalone selling price through the most appropriate method to ensure the estimate represents the price the Group would charge for the goods or services if they were sold separately. The Group considered the application and results of a combination of methods and utilized the cost plus a margin approach as the primary method. For R&D and CMC services, the Group estimated the standalone selling price to be $85.0 million. For the other development services the Group estimated the standalone selling price to be $10.0 million. Significant judgement was applied in determining the standalone selling price and the variable consideration that was allocated to each performance obligation. Based on this analysis, the $15.0 million upfront payment was allocated to the license of IP performance obligation. Upon signing of this strategic partnership in September 2019, the Group recognized $15.0 million in revenue for the right of use license of IP as this performance obligation was considered completely satisfied at this date. The Group evaluated the constraint over the remaining variable consideration under the contract and determined that all of the milestone payments relating to the R&D and CMC services and other development services were considered constrained as at December 31, 2020. As part of this evaluation, the Group considered a variety of factors, including whether the receipt of the milestone payments is outside of the Group’s control or contingent on the outcome of clinical trials and the impact of certain repayment clauses. The Group will continue to evaluate the constraint over variable consideration in future periods. Additionally, the Group applies the sales-based and usage-based royalty exception for licenses of intellectual property and therefore will recognize royalties and sales-based milestone payments as revenue when the subsequent sale or usage occurs. The $2.5 million milestone payment received in December 2019 from Grünenthal was considered constrained and is still considered deferred consideration as of December 31, 2020. In future periods, additional milestone payments from Grünenthal may result in deferred consideration as revenue recognition of R&D and CMC services and other development services will be dependent upon the assessment of the constraint over variable consideration as well as the percentage of progress towards meeting the development service performance obligations over time. For the six months ended December 31, 2019, the Group recognized $15.0 million in revenue for the right of use license of IP as this performance obligation was considered completely satisfied at this date. For the six months ended December 31, 2020, no milestone revenue was recognized in relation to this strategic partnership with Grünenthal. Tasly arrangement In July 2018, the Group entered into a strategic alliance with Tasly Pharmaceutical Group (“Tasly”) for the development, manufacture and commercialization in China of the Group’s allogeneic mesenchymal precursor cell (“MPC”) products, MPC-150-IM and MPC-25-IC. Tasly received all exclusive rights for MPC-150-IM and MPC-25-IC in China and Tasly will fund all development, manufacturing and commercialization activities in China. The Group received a $20.0 million up-front technology access fee from Tasly upon closing of this strategic alliance in October 2018. The Group is also entitled to receive $25.0 million on product regulatory approvals in China, double-digit escalating royalties on net product sales and up to six escalating milestone payments when the product candidates reach certain sales thresholds in China. Under IFRS 15, upon completion of this strategic alliance in September 2018, the Group recognized $10.0 million in milestone revenue from the $20.0 million up-front technology access fee received in October 2018, as this was the portion of revenue that control was transferred to Tasly, and the remaining $10.0 million from the $20.0 million up-front payment was recognized in revenue in February 2020 as the control for this portion of revenue was transferred to Tasly based on the Group’s decision regarding the exercise of the Group’s rights in the terms and conditions of the agreement. For the six months ended December 31, 2020, the Group recognized a minimal amount of other revenue in relation to research support services provided in relation to the Tasly strategic alliance. There was no revenue recognized in the six months ended December 31, 2019 in relation to the Tasly strategic alliance. TiGenix arrangement In December 2017, the Group entered into a patent license agreement with TiGenix NV (“TiGenix”), now a wholly owned subsidiary of Takeda Pharmaceutical Company Limited (“Takeda”), which granted Takeda exclusive access to certain of our patents to support global commercialization of the adipose-derived mesenchymal stem cell (“MSC") product, Alofisel® a registered trademark of TiGenix, previously known as Cx601, for the local treatment of fistulae. The agreement includes the right for Takeda to grant sub-licenses to affiliates and third parties. The Group is entitled to further payments up to €10.0 million when Takeda reaches certain product regulatory milestones. Additionally, the Group will receive single digit royalties on net sales of Alofisel®. In the year ended June 30, 2020, the Group commenced earning royalty income on sales of Alofisel® in Europe by our licensee Takeda. To date, royalty income earned on sales of Alofisel® in Europe by our licensee Takeda has not been significant. JCR arrangement In October 2013, the Group acquired all of the culture-expanded, MSC-based assets, from Osiris Therapeutics, Inc. (“Osiris”). These assets included assumption of a collaboration agreement (the “JCR Agreement”) with JCR Pharmaceuticals Co., Ltd. (“JCR”), a pharmaceutical company in Japan. Revenue recognized under this agreement is limited to the amount of cash received or for which the Group are entitled, as JCR has the right to terminate the agreement at any time. Under the JCR Agreement, JCR is responsible for all development and manufacturing costs including sales and marketing expenses. Under the JCR Agreement, JCR has the right to develop our MSCs in two fields for the Japanese market: exclusive in conjunction with the treatment of hematological malignancies by the use of hematopoietic stem cells derived from peripheral blood, cord blood or bone marrow, or the First JCR Field; and non-exclusive for developing assays that use liver cells for non-clinical drug screening and evaluation, or the Second JCR Field. With respect to the First JCR Field, the Group are entitled to payments when JCR reaches certain commercial milestones and to escalating double-digit royalties. These royalties are subject to possible renegotiation downward in the event of competition from non-infringing products in Japan. With respect to the Second JCR Field, the Group are entitled to a double digit profit share. The Group expanded our partnership with JCR in Japan for two new indications: for wound healing in patients with Epidermolysis Bullosa (“EB”) in October 2018 and for hypoxic ischemic encephalopathy (“HIE”), a condition suffered by newborns who lack sufficient blood supply and oxygen to the brain, in June 2019. The Group will receive royalties on TEMCELL® Hs. Inj. (“TEMCELL”), a registered trademark of JCR product sales for EB and HIE, if and when JCR begins selling TEMCELL for such indications in Japan. The Group apply the sales-based and usage-based royalty exception for licenses of intellectual property and therefore recognizes royalty revenue at the later of when the subsequent sale or usage occurs and the associated performance obligation has been satisfied. In the six months ended December 31, 2020, the Group recognized $3.4 million in commercialization revenue relating to royalty income earned on sales of TEMCELL in Japan by our licensee JCR, compared with $3.8 million for the six months ended December 31, 2019. These amounts were recorded in revenue as there are no further performance obligations required in regard to these items. Inventories Inventories are included in the financial statements at the lower of cost (including raw materials, direct labor, other direct costs and related production overheads) and net realizable value. Pre-launch inventory is held as an asset when there is a high probability of regulatory approval for the product in accordance with IAS 2 Inventories Provisions, Contingent Liabilities and Contingent Assets The Group considers a number of factors in determining the probability of the product candidate realizing future economic benefit, including the product candidate’s current status in the regulatory approval process, results from the related pivotal clinical trial, results from meetings with relevant regulatory agencies prior to the filing of regulatory applications, the market need, historical experience, as well as potential impediments to the approval process such as product safety or efficacy, commercialization and market trends. When a provision is made against the carrying value of pre-launch inventory the costs are recognized within Manufacturing Commercialization expenses. As of December 31, 2020, there was |
Income tax benefit_(expense)
Income tax benefit/(expense) | 6 Months Ended |
Dec. 31, 2020 | |
Major Components Of Tax Expense Income [Abstract] | |
Income tax benefit/(expense) | 4. Income tax benefit/(expense) Three Months Ended December 31, Six Months Ended December 31, (in U.S. dollars, in thousands) 2020 2019 2020 2019 Income tax expense/(benefit) Current tax Current tax — — — — Total current tax expense/(benefit) — — — — Deferred tax (Increase)/decrease in deferred tax assets (130 ) (5,394 ) (948 ) (7,424 ) (Decrease)/increase in deferred tax liabilities 204 3,125 292 3,222 Total deferred tax expense/(benefit) 74 (2,269 ) (656 ) (4,202 ) Income tax expense/(benefit) 74 (2,269 ) (656 ) (4,202 ) Deferred tax assets have been brought to account only to the extent that it is foreseeable that they are recoverable against future tax liabilities. Deferred tax assets are recognized for unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilized. Deferred tax assets are offset against taxable temporary differences (deferred tax liabilities) when the deferred tax balances relate to the same tax jurisdiction in accordance with our accounting policy. Deferred taxes are measured at the rate in which they are expected to settle within the respective jurisdictions, which can change based on factors such as new legislation or timing of utilization and reversal of associated assets and liabilities. As of As of (in U.S. dollars, in thousands) December 31, 2020 June 30, 2020 Deferred tax assets not brought to account Unused tax losses Potential tax benefit at local tax rates 71,397 55,573 Other temporary differences Potential tax benefit at local tax rates 7,631 6,782 Other tax credits Potential tax benefit at local tax rates 3,220 3,220 82,248 65,575 As of December 31, 2020 and June 30, 2020, the Group has deferred tax assets not brought to account of $82.2 million and $65.6 million, respectively. Deferred tax assets have been brought to account only to the extent that it is foreseeable that they are recoverable against future tax liabilities. |
Financial assets and liabilitie
Financial assets and liabilities | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Financial Assets And Liabilities [Abstract] | |
Financial assets and liabilities | 5. Financial assets and liabilities This note provides information about the Group's financial instruments, including: • an overview of all financial instruments held by the Group; • specific information about each type of financial instrument; • accounting policies; and • information used to determine the fair value of the instruments, including judgments and estimation uncertainty involved. The Group holds the following financial instruments: Financial assets (in U.S. dollars, in thousands) Notes Assets at FVOCI ( 1) Assets at FVTPL ( 2) Assets at amortized cost Total As of December 31, 2020 Cash & cash equivalents 5(a) — — 77,528 77,528 Trade & other receivables 5(b) — — 3,342 3,342 Financial assets at fair value through other comprehensive income 5(e) 1,899 — — 1,899 Other non-current assets — — 3,210 3,210 1,899 — 84,080 85,979 As of June 30, 2020 Cash & cash equivalents 5(a) — — 129,328 129,328 Trade & other receivables 5(b) — — 1,574 1,574 Financial assets at fair value through other comprehensive income 5(e) 1,871 — — 1,871 Other non-current assets — — 3,311 3,311 1,871 — 134,213 136,084 (1) Fair value through other comprehensive income (2) Fair value through profit or loss Financial liabilities (in U.S. dollars, in thousands) Notes Liabilities at FVOCI ( 1) Liabilities at FVTPL ( 2) Liabilities at amortized cost Total As of December 31, 2020 Trade and other payables 5(c) — — 28,610 28,610 Borrowings 5(d) — — 90,657 90,657 Contingent consideration 5(e)(iii) — 28,096 — 28,096 — 28,096 119,267 147,363 As of June 30, 2020 Trade and other payables 5(c) — — 24,972 24,972 Borrowings 5(d) — — 89,478 89,478 Contingent consideration 5(e)(iii) — 45,166 — 45,166 — 45,166 114,450 159,616 (1) Fair value through other comprehensive income (2) Fair value through profit or loss The Group’s exposure to various risks associated with the financial instruments is discussed in Note 9. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets mentioned above. a. Cash and cash equivalents As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Cash at bank 77,066 128,916 Deposits at call ( 1) 462 412 77,528 129,328 (1) As of December 31, 2020 and June 30, 2020, interest-bearing deposits at call include amounts of $0.5 million and $0.4 million, respectively, held as security and restricted for use. (i) Classification as cash equivalents Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition. b. Trade and other receivables and prepayments (i) Trade receivables As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Trade debtors 2,233 678 Foreign withholding tax recoverable 471 471 Security deposit 252 252 Other recoverable taxes (Goods and services tax and value-added tax) 386 173 Trade and other receivables 3,342 1,574 (ii) Prepayments As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Clinical trial research and development expenditure 3,214 3,304 Prepaid insurance and subscriptions 4,180 1,337 Other 2,194 1,005 Prepayments 9,588 5,646 (iii) Classification as trade and other receivables Trade receivables and other receivables represent the principal amounts due at balance date less, where applicable, any provision for expected credit losses. The Group uses the simplified approach to measuring expected credit losses, which uses a lifetime expected credit loss allowance. Debts which are known to be uncollectible are written off in the consolidated income statement. All trade receivables and other receivables are recognized at the value of the amounts receivable, as they are due for settlement within 60 days and therefore do not require remeasurement. (iv) Other receivables These amounts generally arise from transactions outside the usual operating activities of the Group. (v) Fair values of trade and other receivables Due to the short-term nature of the current receivables, their carrying amount is assumed to be the same as their fair value. (vi) Impairment and risk exposure Information about the impairment of trade and other receivables, their credit quality and the Group’s exposure to credit risk, foreign currency risk and interest rate risk can be found in Note 9. c. Trade and other payables As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Trade payables and other payables 28,610 24,972 Trade and other payables 28,610 24,972 The carrying amounts of trade and other payables are assumed to be the same as their fair values, due to their short-term nature. d. Borrowings As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Borrowings Secured liabilities: Borrowing arrangements 80,000 80,000 Less: transaction costs (6,738 ) (6,738 ) Amortization of carrying amount, net of payments made 17,395 16,216 90,657 89,478 As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Borrowings Current 41,571 32,455 Non-current 49,086 57,023 90,657 89,478 (i) Borrowing arrangements Hercules Capital, Inc. In March 2018, the Group entered into a loan and security agreement with Hercules, for a $75.0 million non-dilutive, four year credit facility. The Group drew the first tranche of $35.0 million on closing and a further tranche of $15.0 million was drawn in January 2019. The loan matures in March 2022. Principal repayments are due to commence in March 2021. In January 2021, as disclosed in Note 11, the Group amended the terms of the loan agreement to extend the interest-only period of the loan up to March 2022, subject to achieving certain milestones. Presentation at December 31, 2020 has not been changed as a result of this amendment. Interest on the loan is payable monthly in arrears on the 1 st In the six months ended December 31, 2020, the Group recognized a loss of $0.1 million in the Income Statement as remeasurement of borrowing arrangements within finance costs. These remeasurement losses relate to the adjustment of the carrying amount of our financial liability to reflect the revised estimated future cash flows from our existing credit facility. In the six months ended December 31, 2019, the Group recognized a gain of $0.6 million in the Income Statement as remeasurement of borrowing arrangements within finance costs. NovaQuest Capital Management, L.L.C. On June 29, 2018, we drew the first tranche of $30.0 million of the principal amount from the $40.0 million loan and security agreement with NovaQuest. There is a four-year interest only period, until July 2022, with the principal repayable in equal quarterly instalments over the remaining period of the loan. The loan matures in July 2026. Interest on the loan will accrue at a fixed rate of 15% per annum. All interest and principal payments will be deferred until after the first commercial sale of remestemcel-L for the treatment in pediatric patients with SR-aGVHD. The Group can elect to prepay all outstanding amounts owing at any time prior to maturity, subject to a prepayment charge, and may decide to do so if net sales of remestemcel-L for pediatric SR-aGVHD are significantly higher than current forecasts. If there are no net sales of remestemcel-L for pediatric SR-aGVHD, the loan is only repayable on maturity in 2026. If in any annual period 25% of net sales of remestemcel-L for pediatric SR-aGVHD exceed the amount of accrued interest owing and, from 2022, principal and accrued interest owing (“the payment cap”), Mesoblast will pay the payment cap and an additional portion of excess sales which may be used for early prepayment of the loan. If in any annual period 25% of net sales of remestemcel-L for pediatric SR-aGVHD is less than the payment cap, then the payment is limited to 25% of net sales of remestemcel-L for pediatric SR-aGVHD. Any unpaid interest will be added to the principal amounts owing and shall accrue further interest. At maturity date, any unpaid loan balances are repaid. Because of this relationship of net sales and repayments, changes in our estimated net sales may trigger an adjustment of the carrying amount of the financial liability to reflect the revised estimated cash flows. The carrying amount is recalculated by computing the present value of the revised estimated future cash flows at the financial instrument’s original effective interest rate. The adjustment is recognized in the Income Statement as remeasurement of borrowing arrangements within finance costs in the period the revision is made. In the six months ended December 31, 2020, the Group recognized a gain of $4.1 million in the Income Statement as remeasurement of borrowing arrangements within finance costs in relation to the adjustment of the carrying amount of our financial liability to reflect the revised estimated future cash flows as a net result of changes to the key assumptions in development timelines. In the six months ended December 31, 2019, the Group recognized a gain of $0.2 million in the Income Statement as remeasurement of borrowing arrangements within finance costs in relation to the adjustment of the carrying amount of our financial liability to reflect the revised estimated future cash flows. As at December 31, 2020, the Group has recognized a current liability of $0.4 million which represents the present value of $0.4 million loan administration fee which is payable annually in June. The carrying amount of the loan and security agreement with NovaQuest is subordinated to the Group’s floating rate loan with the senior creditor, Hercules. (ii) Compliance with loan covenants Our loan facilities with Hercules and NovaQuest contain a number of covenants that impose operating restrictions on us, which may restrict our ability to respond to changes in our business or take specified actions. The Group has an operating objective to at all times maintain unrestricted cash reserves in excess of six months liquidity. This objective aligns with our loan and security agreement with Hercules where we are obliged to maintain certain levels of cash in the United States, and a minimum unrestricted cash balance equal to four months liquidity (defined as the prior four calendar months net cash outflows in operating activities and investing activities, excluding amounts for extraordinary, non-recurring, not regularly scheduled or onetime proceeds and amounts) plus any balance of accounts payable not paid after the 120th day following the invoice date for such accounts payable. The Group has complied with the financial and other restrictive covenants of its borrowing facilities during the six months ended December 31, 2020 and during the year ended June 30, 2020. (iii) Net Debt Reconciliation (in U.S. dollars, in thousands) As of December 31, 2020 As of June 30, 2020 Cash and cash equivalents 77,528 129,328 Borrowings Repayable within one year (1) (44,123 ) (35,974 ) Borrowings Repayable after one year (55,598 ) (63,340 ) Net Debt ( 2) (22,193 ) 30,014 Cash and cash equivalents 77,528 129,328 Gross debt - fixed interest rates (48,094 ) (49,414 ) Gross debt - variable interest rates (51,627 ) (49,900 ) Net Debt ( 2) (22,193 ) 30,014 (1) In January 2021, as disclosed in Note 11, the Group amended the terms of the loan agreement to extend the interest-only period of the loan up to March 2022, subject to achieving certain milestones. Presentation at December 31, 2020 has not been changed as a result of this amendment. (2) Net debt amount includes leases and borrowing arrangements. Liabilities from financing activities Other assets (in U.S. dollars, in thousands) Borrowings Leases Sub-total Cash and cash equivalents Total Net Debt as at June 30, 2020 (89,478 ) (9,836 ) (99,314 ) 129,328 30,014 Cash Flows ( 1) — 1,480 1,480 (53,437 ) (51,957 ) Remeasurement of borrowing arrangements 3,955 — 3,955 — 3,955 Other Changes ( 2) (5,134 ) 117 (5,017 ) — (5,017 ) Acquisition - leases — (395 ) (395 ) — (395 ) Foreign exchange adjustments — (430 ) (430 ) 1,637 1,207 Net Debt as at December 31, 2020 (90,657 ) (9,064 ) (99,721 ) 77,528 (22,193 ) (1) Cash flows include the payments of lease liabilities which are presented as financing cash flows in the statement of cash flows. (2) Other changes include accrued interest expenses and interest payments for borrowings and leases, which are presented as operating cash flows in the statement of cash flows when paid. (iv) Fair values of borrowing arrangements The carrying amount of the borrowings at amortized cost in accordance with our accounting policy is a reasonable approximation of fair value. a. Recognized fair value measurement (i) Fair value hierarchy The following table presents the Group's financial assets and financial liabilities measured and recognized at fair value as of December 31, 2020 and June 30, 2020 on a recurring basis, categorized by level according to the significance of the inputs used in making the measurements: As of June 30, 2020 (in U.S. dollars, in thousands) Notes Level 1 Level 2 Level 3 Total Financial Assets Financial assets at fair value through other comprehensive income: Equity securities - biotech sector — — 1,871 1,871 Total Financial Assets — — 1,871 1,871 Financial Liabilities Financial liabilities at fair value through profit or loss: Contingent consideration 5(e)(iii) — — 45,166 45,166 Total Financial Liabilities — — 45,166 45,166 As of December 31, 2020 (in U.S. dollars, in thousands) Notes Level 1 Level 2 Level 3 Total Financial Assets Financial assets at fair value through other comprehensive income: Equity securities - biotech sector — — 1,899 1,899 Total Financial Assets — — 1,899 1,899 Financial Liabilities Financial liabilities at fair value through profit or loss: Contingent consideration 5(e)(iii) — — 28,096 28,096 Total Financial Liabilities — — 28,096 28,096 There were no transfers between any of the levels for recurring fair value measurements during the period. The Group’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. Level 1 : The fair value of financial instruments traded in active markets (such as publicly traded derivatives, trading and f inancial assets at fair value through other comprehensive income securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1. Level 2 : The fair value of financial instruments that are not traded in an active market (for example, foreign exchange contracts) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for provisions (contingent consideration) and equity securities (unlisted). (ii) Valuation techniques used. The Group used discounted cash flow analysis to determine the fair value measurements of level 3 instruments. (iii) Fair value measurements using significant unobservable inputs (level 3) The following table presents the changes in level 3 instruments for the six months ended December 31, 2020 and the year ended June 30, 2020. (in U.S. dollars, in thousands) Contingent consideration provision Opening balance - July 1, 2019 47,534 Amount used during the period (988 ) Charged/(credited) to consolidated income statement: Remeasurement ( 1) (1,380 ) Closing balance - June 30, 2020 45,166 Opening balance - July 1, 2020 45,166 Amount used during the period (501 ) Charged/(credited) to consolidated income statement: Remeasurement ( 2) (16,569 ) Closing balance - December 31, 2020 28,096 (1) In the year ended June 30, 2020 a gain of $1.3 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This gain is a net result of changes to the key assumptions of the contingent consideration valuation such as developmental timelines, market penetration, product pricing and the increase in valuation as the time period shortens between the valuation date and the potential settlement dates of contingent consideration. (2) In the six months ended December 31, 2020 a gain of $16.6 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This gain was a net result of changing the key assumptions of the contingent consideration valuation primarily as a result of receiving the Complete Response Letter from the FDA on the BLA for remestemcel-L for the treatment of pediatric SR-aGVHD on September 30, 2020 and a reassessment of the potential launch timeline. The assumptions of probability of success and development timeline have been updated to reflect current expectations as a result of the Complete Response Letter and the Group’s discussions with the FDA for potential accelerated or full approval of the BLA for remestemcel-L for pediatric SR-aGVHD. (iv) Valuation inputs and relationship to fair value The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements: Range of inputs (weighted average) (in U.S. dollars, in thousands, except percent data) Fair value as of December 31, Fair value as of June 30, Valuation Unobservable Six Months Ended December 31, Year Ended June 30, Relationship of unobservable inputs to Description 2020 2020 technique inputs ( 1) 2020 2020 fair value Contingent consideration provision 28,096 45,166 Discounted cash flows Risk adjusted discount rate 11%-13% (12.5%) 11%-13% (12.5%) Six months ended 31 December, 2020: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.4%. Year ended June 30, 2020: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.4%. Expected unit revenues n/a n/a Six months ended 31 December, 2020: A change in the price assumptions by 10% would increase/decrease the fair value by 4%. Year ended June 30, 2020: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 3%. Expected sales volumes n/a n/a Six months ended 31 December, 2020: A change in the volume assumptions by 10% would increase/decrease the fair value by 4%. Year ended June 30, 2020: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 3%. Probability of success Various Various Six months ended 31 December, 2020 : A change in the probability of success assumptions by 10% and 20% would increase/decrease the fair value by 8.5% and 17.0%, respectively. Year ended June 30, 2020: A 10% and 20% increase in the probability of success assumptions would increase the fair value by 9% and 12.9%, respectively, and a 10% and 20% decrease in the probability of success assumptions would decrease the fair value by 9% and 18%, respectively. (1) There were no significant inter-relationships between unobservable inputs that materially affect fair values. (v) Valuation processes In connection with the Osiris acquisition, on October 11, 2013 (the “acquisition date”), an independent valuation of the contingent consideration was carried out by an independent valuer. For the six months ended December 31, 2020 and the year ended June 30, 2020, the Group has adopted a process to value contingent consideration internally. This valuation has been completed by the Group’s internal valuation team and reviewed by the Chief Financial Officer (the "CFO"). The valuation team is responsible for the valuation model. The valuation team also manages a process to continually refine the key assumptions within the model. This is done with input from the relevant business units. The key assumptions in the model have been clearly defined and the responsibility for refining those assumptions has been assigned to the most relevant business units. For each indication we determine the probability of success based on the current development status within each jurisdiction. Cash flows relevant to each jurisdiction are discounted appropriately based on the probability of success assumed. The remeasurement charged to the consolidated income statement in the six months ended December 31, 2020 was a net result of changing the key assumptions of the contingent consideration valuation primarily as a result of receiving the Complete Response Letter from the FDA on the BLA for remestemcel-L for the treatment of pediatric SR-aGVHD on September 30, 2020 and a reassessment of the potential launch timeline. The assumptions of probability of success and development timeline have been updated to reflect current expectations as a result of the Complete Response Letter and the Group’s discussions with the FDA for potential accelerated or full approval of the BLA for remestemcel-L for pediatric SR-aGVHD. When the outcome of the request for accelerated or full approval is known, this could change the key assumptions and a further remeasurement of contingent consideration, up or down, could occur. As of December 31, As of June 30, The fair value of contingent consideration (in U.S. dollars, in thousands) 2020 2020 Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets 18,463 28,801 Fair value of royalty payments from commercialization of the intellectual property acquired 9,633 16,365 28,096 45,166 The main level 3 inputs used by the Group are evaluated as follows: Risk adjusted discount rate: The discount rate used in the valuation has been determined based on required rates of returns of listed companies in the biotechnology industry (having regards to their stage of development, their size and number of projects) and the indicative rates of return required by suppliers of venture capital for investments with similar technical and commercial risks. This assumption is reviewed as part of the valuation process outlined above. Expected unit revenues: Expected market sale price of the most comparable products currently available in the market place. This assumption is reviewed as part of the valuation process outlined above. Expected sales volumes: Expected sales volumes of the most comparable products currently available in the market place. This assumption is reviewed as part of the valuation process outlined above. Probability of success: Expected cash flows used to measure contingent consideration are risk adjusted for the probability of successful development |
Non-financial Assets and Liabil
Non-financial Assets and Liabilities | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Non Financial Assets And Liabilities [Abstract] | |
Non-financial Assets and Liabilities | 6. Non-financial assets and liabilities b. Intangible assets (in U.S. dollars, in thousands) Goodwill Acquired to In-process research development acquired Current marketed products Total Year Ended June 30, 2020 Opening net book amount 134,453 1,744 427,779 19,150 583,126 Additions — 50 — — 50 Exchange differences — (2 ) — 1 (1 ) Amortization charge — (119 ) — (1,455 ) (1,574 ) Closing net book amount 134,453 1,673 427,779 17,696 581,601 As of June 30, 2020 Cost 134,453 2,862 489,698 24,000 651,013 Accumulated amortization — (1,189 ) — (6,304 ) (7,493 ) Accumulated impairment — — (61,919 ) — (61,919 ) Net book amount 134,453 1,673 427,779 17,696 581,601 Six Months Ended December 31, 2020 Opening net book amount 134,453 1,673 427,779 17,696 581,601 Additions — 500 — — 500 Exchange differences — — — (1 ) (1 ) Amortization charge — (43 ) — (727 ) (770 ) Closing net book amount 134,453 2,130 427,779 16,968 581,330 As of December 31, 2020 Cost 134,453 3,419 489,698 23,998 651,568 Accumulated amortization — (1,289 ) — (7,030 ) (8,319 ) Accumulated impairment — — (61,919 ) — (61,919 ) Net book amount 134,453 2,130 427,779 16,968 581,330 (i) Carrying value of in-process research and development acquired by product As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Cardiovascular products ( 1) 254,351 254,351 Intravenous products for metabolic diseases and inflammatory/immunologic conditions ( 2) 70,730 70,730 MSC products ( 3) 102,698 102,698 427,779 427,779 (1) Includes MPC-150-IM for the treatment or prevention of chronic heart failure and MPC-25-IC for the treatment or prevention of acute myocardial infarction (2) Includes MPC-300-IV for the treatment of biologic-refractory rheumatoid arthritis and diabetic nephropathy (3) Includes remestemcel-L for the treatment of children with SR-aGVHD and remestemcel-L for the treatment of Crohn’s disease For all products included within the above balances, the underlying currency of each item recorded is USD. (ii) Significant estimate: Impairment of goodwill and assets with an indefinite useful life The Group tests annually or more frequently if events or changes in circumstances indicate that they might be impaired whether goodwill and its assets with indefinite useful lives have suffered any impairment in accordance with its accounting policy stated in Note 22(j) in the Form 20-F for the year ended June 30, 2020. The recoverable amounts of these assets and cash-generating units have been determined based on fair value less costs to dispose calculations, which require the use of certain assumptions . A full annual impairment assessment was performed at March 31, 2020 and no impairment of the in-process research and development and goodwill was identified. On September 30, 2020, the FDA issued a Complete Response Letter to Mesoblast’s BLA for remestemcel-L for the treatment of pediatric SR-aGVHD and the Group has considered this to be an impairment indicator that could cause the carrying amount of our MSC products intangible asset to exceed its recoverable amount. As a result, the Group has completed an impairment assessment on the MSC products as at September 30, 2020. The impairment assessment on the MSC products has been determined based on fair value less costs to dispose calculations as at September 30, 2020, which require the use of certain assumptions and no impairment of the in-process research and development and goodwill was identified. In December 2020 , the Group received the data read out from the Phase 3 trial of rexlemestrocel-L for the treatment of chronic heart failure and the Group has considered this to be an impairment indicator that could cause the carrying amount of our MPC-150-IM product intangible asset to exceed its recoverable amount. As a result, the Group has completed an impairment test on the MPC-150-IM product as at December 31, 2020. The impairment assessment on the MPC-150-IM product has been determined based on fair value less costs to dispose calculations as at December 31, 2020, which require the use of certain assumptions (iii) Impairment tests for goodwill and intangible assets with an indefinite useful life In-process research and development acquired is considered to be an indefinite life intangible asset on the basis that it is incomplete and cannot be used in its current form (see Note 22(p)(iii) in the Form 20-F for the year ended June 30, 2020). The intangible asset’s life will remain indefinite until such time it is completed and commercialized or impaired. The carrying value of in-process research and development is a separate asset which has been subject to impairment testing at the cash generating unit level, which has been determined to be at the product level. On acquisition, goodwill was not able to be allocated to the cash generating unit (“CGU”) level or to a group of CGU given the synergies of the underlying research and development. For the purpose of impairment testing, goodwill is monitored by management at the operating segment level. The Group is managed as one operating segment, being the development of adult stem cell technology platform for commercialization. The carrying value of goodwill has been allocated to the appropriate operating segment for the purpose of impairment testing. The recoverable amount of both goodwill and in-process research and development was assessed as of March 31, 2020 based on the fair value less costs to dispose and in-process research and development pertaining to MSC products and the MPC-150-IM product was reassessed as of September 30, 2020 and December 31, 2020, respectively, based on the fair value less costs to dispose. Management assess for indicators of impairment as at December 31, 2020 including considering events up to the date of the approval financial statements. No impairment as at December 31, 2020 was identified. (iv) Key assumptions used for fair value less costs to dispose calculations as it pertains to MSC products and the MPC-150-IM product as at September 30, 2020 and December 31, 2020, respectively In determining the fair value less costs to dispose we have given consideration to the following internal and external indicators: • discounted expected future cash flows of the MSC programs and MPC-150-IM program valued by the Group’s internal valuation team and reviewed by the CFO as at September 30, 2020 and December 31, 2020, respectively. The valuation team is responsible for the valuation model. The valuation team also manages a process to continually refine the key assumptions within the model. This is done with input from the relevant business units. The key assumptions in the model have been clearly defined and the responsibility for refining those assumptions has been assigned to the most relevant business units. When determining key assumptions, the business units refer to both external sources and past experience as appropriate. The valuation is considered to be level 3 in the fair value hierarchy due to unobservable inputs used in the valuation; • the scientific results and progress of the trials since acquisition; • the market capitalization of the Group on the ASX (ASX:MSB) on the impairment testing date of September 30, 2020 and December 31, 2020; and • costs of disposal were assumed to be immaterial at September 30, 2020 and December 31, 2020. Discounted cash-flows used a real post-tax discount rate of 13.8% and 15.5% for MSC products and the MPC-150-IM product, respectively, and include estimated real cash inflows and outflows for each program through to patent expiry. In relation to cash outflows consideration has been given to cost of goods sold, selling costs and clinical trial schedules including estimates of numbers of patients and per patient costs. Associated expenses such as regulatory fees and patent maintenance have been included as well as any further preclinical development if applicable. In relation to cash inflows consideration has been given to product pricing, market population and penetration, sales rebates and discounts, launch timings and probability of success in the relevant applicable markets. There are no standard growth rates applied, other than our estimates of market penetration which increase initially, plateau and then decline. The assessment of the recoverable amount of the MSC products and the MPC-150-IM product have been made in accordance with the discounted cash-flow assumptions outlined above. The assessments showed that the recoverable amount of each product exceeds the carrying amount and therefore there is no impairment. (v) Impact of possible changes in key assumptions The Group has considered and assessed reasonably possible changes in the key assumptions and has not identified any instances that could cause the carrying amount of our intangible assets at December 31, 2020 to exceed its recoverable amount. Whilst there is no impairment, the key sensitivities in this assessment remain the continued successful development of the Group’s technology platforms. If we are unable to successfully develop our technology platforms, an impairment of the carrying amount of the Group’s intangible assets may result. a. Provisions As of As of December 31, 2020 June 30, 2020 (in U.S. dollars, in thousands) Current Non-current Total Current Non-current Total Contingent consideration 10,933 17,163 28,096 19,699 25,467 45,166 Employee benefits 3,624 113 3,737 5,748 83 5,831 Provision for license agreements 3,750 2,165 5,915 3,750 2,013 5,763 18,307 19,441 37,748 29,197 27,563 56,760 (i) Information about individual provisions and significant estimates Contingent consideration The contingent consideration provision relates to the Group’s liability for certain milestones and royalty achievements pertaining to the acquired MSC assets from Osiris. Further disclosures can be found in Note 5(e)(iii). Employee benefits The provision for employee benefits relates to the Group’s liability for annual leave, short term incentives and long service leave. Employee benefits include accrued annual leave. As at December 31, 2020 and June 30, 2020, the entire amount of the accrual was $0.9 million and $0.8 million respectively, and is presented as current, since the Group does not have an unconditional right to defer settlement for any of these obligations. (ii) Movements The contingent consideration provision relates to the Group’s liability for certain milestones and royalty achievements. Refer to Note 5(e)(iii) for movements in contingent consideration for the period ended December 31, 2020 and June 30, 2020. b. Deferred tax balances (i) Deferred tax balances As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Deferred tax assets The balance comprises temporary differences attributable to: Tax losses 73,376 72,899 Other temporary differences 6,741 6,196 Total deferred tax assets 80,117 79,095 Deferred tax liabilities The balance comprises temporary differences attributable to: Intangible assets 80,117 79,825 Total deferred tax liabilities 80,117 79,825 Net deferred tax liabilities — 730 Deferred tax assets expected to be settled within 12 months — — Deferred tax assets expected to be settled after 12 months 80,117 79,095 Deferred tax liabilities expected to be settled within 12 months 144 99 Deferred tax liabilities expected to be settled after 12 months 79,973 79,726 (ii) Movements (in U.S. dollars, in thousands) Tax losses ( 1) (DTA) Other temporary differences ( 1) (DTA) Intangible assets (DTL) Total (DTL) As of June 30, 2019 (61,742 ) (3,687 ) 76,553 11,124 Charged/(credited) to: - profit or loss (10,727 ) (1,960 ) 3,272 (9,415 ) - directly to equity (430 ) (549 ) — (979 ) As of June 30, 2020 (72,899 ) (6,196 ) 79,825 730 Charged/(credited) to: - profit or loss 106 (1,054 ) 292 (656 ) - directly to equity (583 ) 509 — (74 ) As of December 31, 2020 (73,376 ) (6,741 ) 80,117 — (1) Deferred tax assets are netted against deferred tax liabilities |
Cash flow information
Cash flow information | 6 Months Ended |
Dec. 31, 2020 | |
Statement Of Cash Flows [Abstract] | |
Cash flow information | 7. Cash flow information (in U.S. dollars, in thousands) As of December 31, As of June 30, (a) Reconciliation of cash and cash equivalents 2020 2020 Cash at bank 77,066 128,916 Deposits at call 462 412 77,528 129,328 (in U.S. dollars, in thousands) Six months ended December 31, (b) Reconciliation of net cash flows used in operations with loss after income tax 2020 2019 Loss for the period (50,236 ) (30,067 ) Add/(deduct) net loss for non-cash items as follows: Depreciation and amortization 2,052 1,715 Foreign exchange (gains)/losses (417 ) (375 ) Finance costs 5,134 4,343 Remeasurement of borrowing arrangements (3,955 ) (779 ) Remeasurement of contingent consideration (16,569 ) 882 Equity settled share-based payment 8,421 2,447 Deferred tax benefit (656 ) (4,202 ) Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables (1,727 ) (620 ) Decrease/(increase) in prepayments (3,238 ) (778 ) Decrease/(increase) in tax assets — 1,499 Increase/(decrease) in trade creditors and accruals 3,189 5,910 Increase/(decrease) in provisions (2,127 ) 637 Increase/(decrease) in deferred consideration — 2,500 Net cash outflows used in operations (60,129 ) (16,888 ) |
Issued capital
Issued capital | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Issued capital | 8. Issued capital Contributed equity (i) Share capital As of December 31, 2020 2019 2020 2019 Shares No. (U.S. dollars, in thousands) Contributed equity (i) Share capital Ordinary shares 587,586,780 536,779,434 1,065,539 959,635 Less: Treasury Shares (583,314 ) (3,500,000 ) — — Total Contributed Equity 587,003,466 533,279,434 1,065,539 959,635 (ii) Movements in ordinary share capital As of December 31, As of December 31, 2020 2019 2020 2019 Shares No. (U.S. dollars, in thousands) Opening balance 583,949,612 498,626,208 1,051,450 910,405 Issues of ordinary shares during the period Exercise of share options ( 1) — 653,226 8,136 390 Transfer to employee share trust ( 1) 2,450,000 — — — Share based compensation for services rendered 1,187,168 — 1,867 — Placement of shares under a share placement agreement ( 2) — 37,500,000 — 50,663 Transaction costs arising on share issue — — (196 ) (2,164 ) 3,637,168 38,153,226 9,807 48,889 Share options reserve transferred to equity on exercise of options — — 4,282 341 Ending balance 587,586,780 536,779,434 1,065,539 959,635 (1) Options are issued to employees, directors and consultants in accordance with the Mesoblast Employee Share Option Plan. From July 1, 2020, unpaid shares are issued to the share trust to enable future option exercises to be settled. On exercise of options, the proceeds of the exercise are recorded in ordinary share capital in Mesoblast Limited and the exercise is settled by transfer of the shares from the share trust to the employee. Prior to July 1, 2020, the shares issued and share capital received on the exercise of options were recorded in ordinary share capital. (2) During the six months ended December 31, 2019, 37,500,000 shares were issued in an equity purchase of Mesoblast Limited at A$2.00 per share to existing and new institutional investors, representing a 3.15% discount to the 10 day volume weighted average price calculated at the close of trading September 30, 2019. (iii) Movements of shares in share trust As of December 31, As of December 31, 2020 2019 2020 2019 Shares No. (U.S. dollars, in thousands) Opening balance ( 1) 3,500,000 3,500,000 — — Movement of shares in share trust Transfer to employee share trust ( 2) 2,450,000 — — — Exercise of share options ( 2) (5,366,686 ) — — — Ending balance 583,314 3,500,000 — — (1) In July 2020, the Group formed the Mesoblast Employee Share Trust, being a new trust formed to administer the Group’s employee share scheme. Prior to forming the new trust, the Group had been using the Mesoblast Limited Employee Share Trust for administering some aspects of the Group’s employee share scheme. In July 2020, 3,500,000 shares were transferred from Mesoblast Limited Employee Share Trust to the Mesoblast Employee Share Trust. These trusts have been consolidated, as the substance of the relationship is that the trusts are controlled by the Group. (2) Options are issued to employees, directors and consultants in accordance with the Mesoblast Employee Share Option Plan. From July 1, 2020, unpaid shares are issued to the share trust to enable future option exercises to be settled. On exercise of options, the proceeds of the exercise are recorded in ordinary share capital in Mesoblast Limited and the exercise is settled by transfer of the shares from the share trust to the employee. Prior to July 1, 2020, the shares issued and share capital received on the exercise of options were recorded in ordinary share capital. |
Financial Risk Management
Financial Risk Management | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Financial Risk Management [Abstract] | |
Financial Risk Management | 9. Financial risk management This note explains the Group’s exposure to financial risks and how these risks could affect the Group’s future financial performance. Current year profit and loss information has been included where relevant to add further context. Risk Exposure arising from Measurement Management Market risk – currency risk Future commercial transactions Recognized financial assets and liabilities not denominated in the functional currency of each entity within the Group Cash flow forecasting Sensitivity analysis The future cash flows of each currency are forecast and the quantum of cash reserves held for each currency are managed in line with future forecasted requirements. Cross currency swaps are undertaken as required. Market risk – interest rate risk Long-term borrowings at floating rates Sensitivity analysis The facility can be refinanced and/or repaid. Interest rate swaps can be entered into to convert the floating interest rate to a fixed interest rate as required. Term deposits at fixed rates Sensitivity analysis Vary length of term deposits, utilize interest bearing accounts and periodically review interest rates available to ensure we earn interest at market rates Market risk – price risk Long-term borrowings Sensitivity analysis Forecasts of net sales of the product underlying the NovaQuest borrowing arrangement are updated on a quarterly basis to evaluate the impact on the carrying amount of the financial liability. Credit risk Cash and cash equivalents, and trade and other receivables Aging analysis Credit ratings Only transact with the best risk rated banks available in each region giving consideration to the products required. Liquidity risk Cash and cash equivalents Borrowings Rolling cash flow forecasts Future cash flows requirements are forecasted and capital raising strategies are planned to ensure sufficient cash balances are maintained to meet the Group’s future commitments a. Market risk (i) Currency risk The Group has foreign currency amounts owing primarily in the Group’s Australian based entity, whose functional currency is the A$ relating to clinical, regulatory and overhead activities. The Group also has foreign currency amounts owing in the Group’s Swiss and Singapore based entities, whose functional currencies are the US$. Currency risk is minimized by ensuring the proportion of cash reserves held in each currency matches the expected rate of spend of each currency. (ii) Cash flow and fair value interest rate risk The Group’s main interest rate risk arises from long-term borrowings with a floating interest rate, which exposes the Group to cash flow interest rate risk. As interest rates fluctuate, the amount of interest payable on financing where the interest rate is not fixed will also fluctuate. This interest rate risk is managed by interest rate swaps which can be entered into to convert the floating interest rate to a fixed interest rate as required. Additionally, the Group can repay its loan facility at its discretion and can also refinance if the terms are suitable in the marketplace or from the existing lender. The Group did not enter into any interest rate swaps during the six months ended December 31, 2020. The exposure of the Group’s borrowing to interest rate changes are as follows: As of As of December 31, 2020 June 30, 2020 (in U.S. dollars, in thousands, except percent data) Total % of total loans Total % of total loans Financial liabilities Current borrowings Variable rate borrowings - Hercules 41,205 45 % 27,949 31 % Non-current borrowings Variable rate borrowings - Hercules 10,422 11 % 21,951 25 % 51,627 56 % 49,900 56 % An analysis by maturities is provided in Note 9(c) below. The percentage of total loans shows the proportion of loans that are currently at variable rates in relation to the total amount of borrowings. The borrowings which expose the Group to interest rate risk are described in the table below, together with the maximum and minimum interest rates being earned as of December 31, 2020 and June 30, 2020. The effect on profit is shown if interest rates change by 5%, in either direction, is as follows: As of As of December 31, 2020 June 30, 2020 (in U.S. dollars, in thousands, except percent data) Low High USD Low High USD Borrowings - USD 9.70 % 9.70 % 51,627 (1) 9.70 % 9.70 % 49,900 (1) Rate increase by 5% 10.19 % 10.19 % 243 10.19 % 10.19 % 243 Rate decrease by 5% 9.22 % 9.22 % (243 ) 9.22 % 9.22 % (243 ) (1) Effect on profit/loss of interest rate changes is based on the loan principal amount of $50.0 million as of December 31, 2020, and June 30, 2020. The Group is also exposed to interest rate movements which impacts interest income earned on its deposits and at call accounts. The interest income derived from these balances can fluctuate due to interest rate changes. This interest rate risk is managed by periodically reviewing interest rates available for suitable interest bearing accounts to ensure we earn interest at market rates. The Group ensures that sufficient funds are available, in at call accounts, to meet the working capital requirements of the Group. The deposits held which derive interest revenue are described in the table below, together with the maximum and minimum interest rates being earned as of December 31, 2020 and June 30, 2020. The effect on profit is shown if interest rates change by 10%, in either direction, is as follows: As of As of December 31, 2020 June 30, 2020 (in U.S. dollars, in thousands, except percent data) Low High USD Low High USD Funds invested - USD 0.00% ( 1) 0.00% ( 1) 50,576 0.03 % 0.03 % 102,925 Rate increase by 10% 0.03% ( 1) 0.03% ( 1) 0 0.03 % 0.03 % 3 Rate decrease by 10% 0.03% ( 1) 0.03% ( 1) 0 0.03 % 0.03 % (3 ) AUD Low High AUD Low High AUD Funds invested - AUD 0.40 % 0.40 % 600 0.86 % 0.86 % 600 Rate increase by 10% 0.44 % 0.44 % 0 0.95 % 0.95 % 1 Rate decrease by 10% 0.36 % 0.36 % (0 ) 0.77 % 0.77 % (1 ) (1) The interest rate reduced to 0% for the period ended December 31, 2020. The sensitivity assumes the interest rate to increase or decrease by 0.03%, which is the opening rate on July 1, 2020. (iii) Price risk Price risk is the risk that future cash flows derived from financial instruments will be altered as a result of a market price movement, which is defined as movements other than foreign currency rates and interest rates. The Group is exposed to price risk which arises from long-term borrowings under its facility with NovaQuest, where the timing and amounts of principal and interest payments is dependent on net sales of remestemcel-L for the treatment of SR-aGVHD in pediatric patients in the United States and other territories excluding Asia. As net sales of remestemcel-L for the treatment of SR-aGVHD in pediatric patients in these territories increase/decrease, the timing and amount of principal and interest payments relating to this type of financing arrangement will also fluctuate, resulting in an adjustment to the carrying amount of the financial liability. The adjustment is recognized in the Income Statement as remeasurement of borrowing arrangements within finance costs in the period the revision is made. The exposure of the Group’s borrowing to price rate changes are as follows: As of As of December 31, 2020 June 30, 2020 (in U.S. dollars, in thousands, except percent data) Total % of total loans Total % of total loans Financial liabilities Current borrowings Borrowings - NovaQuest 367 0 % 4,506 5 % Non-current borrowings Borrowings - NovaQuest 38,663 44 % 35,072 39 % 39,030 44 % 39,578 44 % As at December 31, 2020, all other factors held constant, a 20% increase in the forecast net sales of remestemcel-L for the treatment of SR-aGVHD in pediatric patients in the United States and other territories excluding Asia would increase non-current borrowing and decrease profit by $0.3 million, whereas a 20% decrease in the net sales of remestemcel-L for the treatment of SR-aGVHD in pediatric patients in the United States and other territories excluding Asia would decrease non-current borrowings and The Group is also exposed to price risk on contingent consideration provision balances, as expected unit revenues are a significant unobservable input used in the level 3 fair value measurements. As at December 31, 2020, all other factors held constant, the increase/decrease in price assumptions adopted in the fair value measurements of the contingent consideration provision are discussed in Note 5(e)( iv The Group does not consider it has any exposure to price risk other than those already described above. b. Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge its obligation and cause financial loss to the other party. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets as mentioned in Note 5. c. Liquidity risk Liquidity risk is the risk that the Group will not be able to pay its debts as and when they fall due. Liquidity risk has been assessed in Note 1(i). All financial liabilities, excluding contingent consideration, borrowings and lease liabilities, held by the Group as of December 31, 2020 and June 30, 2020, are non-interest bearing and mature within 6 months. The total contractual cash flows associated with these liabilities equate to the carrying amount disclosed within the financial statements. As of December 31, 2020, the maturity profile of the anticipated future contractual cash flows on an undiscounted basis, and which therefore differs from the carrying value, is as follows: (in U.S. dollars, in thousands) Within 1 year Between 1-2 years Between 2-5 years Over 5 years Total contractual cash flows Carrying amount Borrowings ( 1)(2)(3) (45,558 ) (18,552 ) (43,903 ) (30,273 ) (138,286 ) (90,657 ) Trade payables (28,610 ) — — — (28,610 ) (28,610 ) Lease liabilities (3,043 ) (2,523 ) (4,566 ) (218 ) (10,350 ) (9,064 ) (77,211 ) (21,075 ) (48,469 ) (30,491 ) (177,246 ) (128,331 ) (1) Contractual cash flows include payments of principal, interest and other charges. Interest is calculated based on debt held at December 31, 2020 without taking into account drawdowns of further tranches. (2) In relation to the contractual maturities of the NovaQuest borrowings, there is variability in the maturity profile of the anticipated future contractual cash flows given the timing and amount of payments are calculated based on our estimated net sales of remestemcel-L for the treatment of pediatric SR-aGVHD . (3) In January 2021, as disclosed in Note 11, the Group amended the terms of the Hercules loan agreement to extend the interest-only period of the loan up to March 2022, subject to achieving certain milestones. Presentation at December 31, 2020 has not been changed as a result of this amendment. Purchase commitments In December 2019, the Group commenced production under its manufacturing service agreement with Lonza for the supply of commercial product for the potential approval and launch of remestemcel-L for the treatment of pediatric SR-aGVHD in the US market. This agreement contains lease and non-lease components with a non-cancellable term of 4.5 years through June 2024. As of December 31, 2020, the agreement contains a minimum financial commitment of $39.8 million. The Group has accounted for the lease component within the agreement as a lease liability separately from the non-lease components. As of December 31, 2020, the minimum financial commitment of the lease component is $4.6 million, disclosed within the total contractual cash flows on an undiscounted basis as lease liabilities. The minimum financial commitment of the non-lease component in the agreement is $35.2 million. At the Group’s discretion, the minimum financial commitment under this manufacturing services agreement can be reduced by $23.1 million, with $3.0 million of this reduction relating to the lease component and $20.1 million relating to the non-lease component of the agreement. The Group did not have any other purchase commitments as of December 31, 2020. |
(Losses)_earnings per share
(Losses)/earnings per share | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
(Losses)/earnings per share | 10. (Losses)/earnings per share Three Months Ended Six Months Ended December 31, 2020 Cents December 31, 2019 Cents December 31, 2020 Cents December 31, 2019 Cents (Losses) per share (in cents) (a) Basic (losses) per share From continuing operations attributable to the ordinary equity holders of the company (4.38 ) (4.60 ) (8.60 ) (5.82 ) Total basic (losses) per share attributable to the ordinary equity holders of the company (4.38 ) (4.60 ) (8.60 ) (5.82 ) (b) Diluted (losses) per share From continuing operations attributable to the ordinary equity holders of the company (4.38 ) (4.60 ) (8.60 ) (5.82 ) Total basic (losses) per share attributable to the ordinary equity holders of the company (4.38 ) (4.60 ) (8.60 ) (5.82 ) (c) Reconciliation of (losses) used in calculating (losses) per share (in U.S. dollars, in thousands) Basic (losses) per share (Losses) attributable to the ordinary equity holders of the company used in calculating basic (losses) per share: From continuing operations (25,692 ) (24,584 ) (50,236 ) (30,067 ) Diluted (losses) per share (Losses) from continuing operations attributable to the ordinary equity holders of the company: Used in calculating basic (losses) per share (25,692 ) (24,584 ) (50,236 ) (30,067 ) (Losses) attributable to the ordinary equity holders of the company used in calculating diluted losses per share (25,692 ) (24,584 ) (50,236 ) (30,067 ) Three Months Ended Six Months Ended December 31, 2020 (In Shares) December 31, 2019 (In Shares) December 31, 2020 (In Shares) December 31, 2019 (In Shares) Weighted average number of ordinary shares used as the denominator in calculating basic losses per share 586,354,061 534,410,263 584,421,843 516,855,836 Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted losses per share 586,354,061 534,410,263 584,421,843 516,855,836 Options granted to employees are considered to be potential ordinary shares. These securities have been excluded from the determination of basic losses per share in the three and six months ended December 31, 2020 and 2019. Shares that may be paid as contingent consideration have also been excluded from basic losses per share. They have been excluded from the calculation of diluted losses per share because they are anti-dilutive for the three and six months ended December 31, 2020 and 2019. |
Events occurring after the repo
Events occurring after the reporting period | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Nonadjusting Events After Reporting Period [Abstract] | |
Events occurring after the reporting period | 11. Events occurring after the reporting period In January 2021, the Group amended the terms of the Hercules loan agreement to extend the interest-only period of the loan up to March 2022, subject to achieving certain milestones. Presentation at December 31, 2020 has not been changed as a result of this amendment. There were no other events that have occurred after December 31, 2020 and prior to the signing of this financial report that would likely have a material impact on the financial results presented. |
Segment information
Segment information | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Operating Segments [Abstract] | |
Segment information | 12. Segment information Operating segments are identified on the basis of whether the allocation of resources and/or the assessment of performance of a particular component of the Company’s activities are regularly reviewed by the Company’s chief operating decision maker as a separate operating segment. By these criteria, the activities of the Company are considered to be one segment being the development of adult stem cell technology platform for commercialization, and the segmental analysis is the same as the analysis for the Company as a whole. The chief operating decision maker (Chief Executive Officer) reviews the consolidated income statement, balance sheet, and statement of cash flows regularly to make decisions about the Company’s resources and to assess overall performance. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Dec. 31, 2020 | |
Legal Proceedings Provision [Abstract] | |
Legal proceedings | 13. Legal proceedings In October 2020, in light of the Complete Response Letter released by the FDA and the decline in the market price of our ADS, a purported class action lawsuit was filed in the U.S. Federal District Court for the Southern District of New York on behalf of purchasers or acquirers of our ADSs against the Company, its Chief Executive Officer and its Chief Financial Officer for alleged violations of the U.S. Securities Exchange Act of 1934. The Company cannot provide any assurance as to the possible outcome or cost to us from the lawsuit, particularly as it is at an early stage, nor how long it may take to resolve such lawsuit. Thus, the Company has not accrued any amounts in connection with such legal proceedings other than ongoing attorney’s fees. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Basis Of Preparation [Abstract] | |
Basis of Preparation | 1. Basis of preparation Mesoblast Limited is a for-profit entity for the purpose of preparing the financial statements. The condensed financial statements of Mesoblast Limited and its subsidiaries have been prepared in accordance with International Accounting Standard IAS 34 Interim Financial Reporting (i) Going concern For the six months ended December 31, 2020, the Group incurred a total comprehensive loss after income tax of $48.9 million and had net cash outflows from operations of $60.1 million. The Group held total cash and cash equivalents of $77.5 million as of December 31, 2020. As announced on February 26, 2021, the Group has commenced a proposed equity-based private placement to a targeted industry investor to fund operations. The placement will close in the first week of March, 2021 at which time cash proceeds will be received. Closing of the contract is subject to customary conditions. Proceeds from the offering will be used for working capital and to prepare for confirmatory trials in lead programs as per FDA requirements. Proceeds will enable continued investment in manufacturing for further clinical development and to optimize process development including 2D and 3D bioreactor technologies, in preparation for commercial scale manufacturing, as well as maintenance of minimum unrestricted cash balances as required under our loan agreements (refer to Note 5d). In addition, during the next twelve months, the Group intends to achieve cash inflows from existing strategic and financing partnerships, subject to the Group meeting future milestones and other performance conditions. Some or all of these cash inflows will be required for us to meet our forecast expenditure and continue as a going concern, although there is uncertainty related to our ability to access these cash inflows because the meeting of milestones and other performance conditions are not wholly within the Group’s control. Management and the directors believe that the Group will be successful in the above matters and, accordingly, have prepared the financial report on a going concern basis, notwithstanding that there is a material uncertainty that may cast significant doubt on our ability to continue as a going concern and that the Group may be unable to realize our assets and discharge our liabilities in the normal course of business. References to matters that may cast significant doubt about the Group’s ability to continue as a going concern also raise substantial doubt as contemplated by the Public Company Accounting Oversight Board (“PCAOB”) standards. (ii) New and amended standards adopted by the Group In the opinion of management, the interim financial data includes all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods. There were no new or amended standards adopted by the Group in the six months ended December 31, 2020. These interim financial statements follow the same accounting policies as compared to the June 30, 2020 consolidated financial statements and related notes as filed with the Australian Securities Exchange and the Securities and Exchange Commission. (iii) New accounting standards and interpretations not yet adopted by the Group There were no new accounting standards and interpretations not yet adopted by the Group for the December 31, 2020 reporting period. (iv) Use of estimates The preparation of these consolidated financial statements requires the Group to make estimates and judgments that affect the reported amounts of assets, liabilities, income and expenses and related disclosures. On an ongoing basis, the Group evaluates its significant accounting policies and estimates. Estimates are based on historical experience and on various market-specific and other relevant assumptions that the Group believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Impact of COVID-19 Estimates are assessed each period and updated to reflect current information, such as the economic considerations related to the impact that COVID-19 could have on the Group’s significant accounting estimates. COVID-19 has not led to a material deterioration in the Group’s financial circumstances, nor required the Group to utilize government support. The Group is facing some challenges from the pandemic. The Group’s current and potential future clinical trials have and may experience some delays given reduced capacity at hospitals for completing activities and impacts on patient mobility for treatments or final visits. In addition, health regulators may rate other treatments as higher priorities due to the crisis. |
Loss Before Income Tax (Tables)
Loss Before Income Tax (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Loss Before Income Tax [Abstract] | |
Summary of Loss Before Income Tax | Three Months Ended December 31, Six Months Ended December 31, (in U.S. dollars, in thousands) Note 2020 2019 2020 2019 Revenue Commercialization revenue 2,191 1,969 3,480 3,841 Milestone revenue — — — 15,000 Interest revenue 5 237 21 413 Other revenue 45 — 45 — Total Revenue 2,241 2,206 3,546 19,254 Clinical trial and research & development (4,913 ) (8,225 ) (13,410 ) (13,827 ) Manufacturing production & development (5,910 ) (3,661 ) (17,678 ) (4,956 ) Employee benefits Salaries and employee benefits (7,586 ) (6,498 ) (14,767 ) (11,228 ) Defined contribution superannuation expenses (107 ) (91 ) (191 ) (166 ) Equity settled share-based payment transactions ( 1) (3,540 ) (1,643 ) (8,421 ) (2,447 ) Total Employee benefits (11,233 ) (8,232 ) (23,379 ) (13,841 ) Depreciation and amortization of non-current assets Plant and equipment depreciation (232 ) (115 ) (443 ) (220 ) Right of use asset depreciation (430 ) (356 ) (839 ) (707 ) Intellectual property amortization (387 ) (394 ) (770 ) (788 ) Total Depreciation and amortization of non-current assets (1,049 ) (865 ) (2,052 ) (1,715 ) Other Management & administration expenses Overheads & administration (1,929 ) (2,321 ) (3,746 ) (4,885 ) Consultancy (1,190 ) (1,016 ) (2,996 ) (2,161 ) Legal, patent and other professional fees (1,620 ) (1,087 ) (2,895 ) (3,979 ) Intellectual property expenses (excluding the amount amortized above) (711 ) (658 ) (1,280 ) (1,252 ) Total Other Management & administration expenses (5,450 ) (5,082 ) (10,917 ) (12,277 ) Fair value remeasurement of contingent consideration Remeasurement of contingent consideration 5(e)(iii) 1,462 (595 ) 16,569 (882 ) Total Fair value remeasurement of contingent consideration 1,462 (595 ) 16,569 (882 ) Other operating income and expenses Government grant revenue — — 17 — Foreign exchange gains/(losses) 296 143 378 375 Total Other operating income and expenses 296 143 395 375 Finance (costs)/gains Remeasurement of borrowing arrangements ( 2) 2,932 1,060 3,955 779 Interest expense (3,994 ) (3,602 ) (7,921 ) (7,179 ) Total Finance costs (1,062 ) (2,542 ) (3,966 ) (6,400 ) Total loss before income tax (25,618 ) (26,853 ) (50,892 ) (34,269 ) (1) Share-based payment transactions For the three and six months ended December 31, 2020 and 2019, the share-based payment transactions have been reflected in the Consolidated Income Statement functional expense categories as follows: Three Months Ended December 31, Six Months Ended December 31, (in U.S. dollars) 2020 2019 2020 2019 Research and development 2,298,879 650,488 5,134,601 970,168 Manufacturing and commercialization 170,859 86,336 365,175 139,916 Management and administration 1,069,753 906,310 2,920,952 1,336,848 Equity settled share-based payment transactions 3,539,491 1,643,134 8,420,728 2,446,932 (2) Change in comparative figures The Group routinely reviews the financial statements for opportunities to improve the quality of financial reporting. The Group identified an opportunity to enhance the presentation of the Remeasurement for borrowing arrangements within Finance (costs)/gains and Remeasurement for borrowing arrangements within Other operating income and expenses. The Group considered that changes in the carrying value of borrowings is primarily due to changes in our estimated future cash flows and key assumptions about the settlement of the borrowings and these line items in the Consolidated Income Statement should therefore be reported in aggregate, to provide more relevant information to the users of the financial statements. This change in presentation has been retrospectively applied to the three months ended December 31, 2019 and the six months ended December 31, 2019. The impact of the reclassification of the prior period financial statements is summarized below: Three Months Ended December 31, Six Months Ended December 31, 2019 2019 (in U.S. dollars, in thousands) Previously reported Currently reported Effect of change Previously reported Currently reported Effect of change Other operating income and expenses 440 — (440 ) 39 — (39 ) Finance costs 620 1,060 440 740 779 39 |
Income Tax Benefit_(Expense) (T
Income Tax Benefit/(Expense) (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Major Components Of Tax Expense Income [Abstract] | |
Summary of Income tax benefit/(expense) | Three Months Ended December 31, Six Months Ended December 31, (in U.S. dollars, in thousands) 2020 2019 2020 2019 Income tax expense/(benefit) Current tax Current tax — — — — Total current tax expense/(benefit) — — — — Deferred tax (Increase)/decrease in deferred tax assets (130 ) (5,394 ) (948 ) (7,424 ) (Decrease)/increase in deferred tax liabilities 204 3,125 292 3,222 Total deferred tax expense/(benefit) 74 (2,269 ) (656 ) (4,202 ) Income tax expense/(benefit) 74 (2,269 ) (656 ) (4,202 ) |
Summary of Deferred Tax Assets Not Brought to Account | As of As of (in U.S. dollars, in thousands) December 31, 2020 June 30, 2020 Deferred tax assets not brought to account Unused tax losses Potential tax benefit at local tax rates 71,397 55,573 Other temporary differences Potential tax benefit at local tax rates 7,631 6,782 Other tax credits Potential tax benefit at local tax rates 3,220 3,220 82,248 65,575 |
Financial assets and liabilit_2
Financial assets and liabilities (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Financial Assets And Liabilities [Abstract] | |
Summary of Financial Instruments | The Group holds the following financial instruments: Financial assets (in U.S. dollars, in thousands) Notes Assets at FVOCI ( 1) Assets at FVTPL ( 2) Assets at amortized cost Total As of December 31, 2020 Cash & cash equivalents 5(a) — — 77,528 77,528 Trade & other receivables 5(b) — — 3,342 3,342 Financial assets at fair value through other comprehensive income 5(e) 1,899 — — 1,899 Other non-current assets — — 3,210 3,210 1,899 — 84,080 85,979 As of June 30, 2020 Cash & cash equivalents 5(a) — — 129,328 129,328 Trade & other receivables 5(b) — — 1,574 1,574 Financial assets at fair value through other comprehensive income 5(e) 1,871 — — 1,871 Other non-current assets — — 3,311 3,311 1,871 — 134,213 136,084 (1) Fair value through other comprehensive income (2) Fair value through profit or loss Financial liabilities (in U.S. dollars, in thousands) Notes Liabilities at FVOCI ( 1) Liabilities at FVTPL ( 2) Liabilities at amortized cost Total As of December 31, 2020 Trade and other payables 5(c) — — 28,610 28,610 Borrowings 5(d) — — 90,657 90,657 Contingent consideration 5(e)(iii) — 28,096 — 28,096 — 28,096 119,267 147,363 As of June 30, 2020 Trade and other payables 5(c) — — 24,972 24,972 Borrowings 5(d) — — 89,478 89,478 Contingent consideration 5(e)(iii) — 45,166 — 45,166 — 45,166 114,450 159,616 (1) Fair value through other comprehensive income (2) Fair value through profit or loss |
Summary of Cash and Cash Equivalents | a. Cash and cash equivalents As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Cash at bank 77,066 128,916 Deposits at call ( 1) 462 412 77,528 129,328 (1) As of December 31, 2020 and June 30, 2020, interest-bearing deposits at call include amounts of $0.5 million and $0.4 million, respectively, held as security and restricted for use. |
Summary of Trade and Other Receivables and Prepayments | b. Trade and other receivables and prepayments (i) Trade receivables As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Trade debtors 2,233 678 Foreign withholding tax recoverable 471 471 Security deposit 252 252 Other recoverable taxes (Goods and services tax and value-added tax) 386 173 Trade and other receivables 3,342 1,574 (ii) Prepayments As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Clinical trial research and development expenditure 3,214 3,304 Prepaid insurance and subscriptions 4,180 1,337 Other 2,194 1,005 Prepayments 9,588 5,646 |
Summary of Trade and Other Payables | c. Trade and other payables As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Trade payables and other payables 28,610 24,972 Trade and other payables 28,610 24,972 |
Summary of Borrowings | d. Borrowings As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Borrowings Secured liabilities: Borrowing arrangements 80,000 80,000 Less: transaction costs (6,738 ) (6,738 ) Amortization of carrying amount, net of payments made 17,395 16,216 90,657 89,478 As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Borrowings Current 41,571 32,455 Non-current 49,086 57,023 90,657 89,478 |
Summary of Net Debt | (iii) Net Debt Reconciliation (in U.S. dollars, in thousands) As of December 31, 2020 As of June 30, 2020 Cash and cash equivalents 77,528 129,328 Borrowings Repayable within one year (1) (44,123 ) (35,974 ) Borrowings Repayable after one year (55,598 ) (63,340 ) Net Debt ( 2) (22,193 ) 30,014 Cash and cash equivalents 77,528 129,328 Gross debt - fixed interest rates (48,094 ) (49,414 ) Gross debt - variable interest rates (51,627 ) (49,900 ) Net Debt ( 2) (22,193 ) 30,014 (1) In January 2021, as disclosed in Note 11, the Group amended the terms of the loan agreement to extend the interest-only period of the loan up to March 2022, subject to achieving certain milestones. Presentation at December 31, 2020 has not been changed as a result of this amendment. (2) Net debt amount includes leases and borrowing arrangements. |
Summary of Net Debt Reconciliation | Liabilities from financing activities Other assets (in U.S. dollars, in thousands) Borrowings Leases Sub-total Cash and cash equivalents Total Net Debt as at June 30, 2020 (89,478 ) (9,836 ) (99,314 ) 129,328 30,014 Cash Flows ( 1) — 1,480 1,480 (53,437 ) (51,957 ) Remeasurement of borrowing arrangements 3,955 — 3,955 — 3,955 Other Changes ( 2) (5,134 ) 117 (5,017 ) — (5,017 ) Acquisition - leases — (395 ) (395 ) — (395 ) Foreign exchange adjustments — (430 ) (430 ) 1,637 1,207 Net Debt as at December 31, 2020 (90,657 ) (9,064 ) (99,721 ) 77,528 (22,193 ) (1) Cash flows include the payments of lease liabilities which are presented as financing cash flows in the statement of cash flows. (2) Other changes include accrued interest expenses and interest payments for borrowings and leases, which are presented as operating cash flows in the statement of cash flows when paid. |
Summary of Financial Assets and Liabilities Measured and Recognized at Fair Value | The following table presents the Group's financial assets and financial liabilities measured and recognized at fair value as of December 31, 2020 and June 30, 2020 on a recurring basis, categorized by level according to the significance of the inputs used in making the measurements: As of June 30, 2020 (in U.S. dollars, in thousands) Notes Level 1 Level 2 Level 3 Total Financial Assets Financial assets at fair value through other comprehensive income: Equity securities - biotech sector — — 1,871 1,871 Total Financial Assets — — 1,871 1,871 Financial Liabilities Financial liabilities at fair value through profit or loss: Contingent consideration 5(e)(iii) — — 45,166 45,166 Total Financial Liabilities — — 45,166 45,166 As of December 31, 2020 (in U.S. dollars, in thousands) Notes Level 1 Level 2 Level 3 Total Financial Assets Financial assets at fair value through other comprehensive income: Equity securities - biotech sector — — 1,899 1,899 Total Financial Assets — — 1,899 1,899 Financial Liabilities Financial liabilities at fair value through profit or loss: Contingent consideration 5(e)(iii) — — 28,096 28,096 Total Financial Liabilities — — 28,096 28,096 |
Summary of Changes in Fair Value of Level 3 Instruments | The following table presents the changes in level 3 instruments for the six months ended December 31, 2020 and the year ended June 30, 2020. (in U.S. dollars, in thousands) Contingent consideration provision Opening balance - July 1, 2019 47,534 Amount used during the period (988 ) Charged/(credited) to consolidated income statement: Remeasurement ( 1) (1,380 ) Closing balance - June 30, 2020 45,166 Opening balance - July 1, 2020 45,166 Amount used during the period (501 ) Charged/(credited) to consolidated income statement: Remeasurement ( 2) (16,569 ) Closing balance - December 31, 2020 28,096 (1) In the year ended June 30, 2020 a gain of $1.3 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This gain is a net result of changes to the key assumptions of the contingent consideration valuation such as developmental timelines, market penetration, product pricing and the increase in valuation as the time period shortens between the valuation date and the potential settlement dates of contingent consideration. (2) In the six months ended December 31, 2020 a gain of $16.6 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This gain was a net result of changing the key assumptions of the contingent consideration valuation primarily as a result of receiving the Complete Response Letter from the FDA on the BLA for remestemcel-L for the treatment of pediatric SR-aGVHD on September 30, 2020 and a reassessment of the potential launch timeline. The assumptions of probability of success and development timeline have been updated to reflect current expectations as a result of the Complete Response Letter and the Group’s discussions with the FDA for potential accelerated or full approval of the BLA for remestemcel-L for pediatric SR-aGVHD. |
Summary of Quantitative Information About the Significant Unobservable Inputs Used in Level 3 Fair Value Measurements | The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements: Range of inputs (weighted average) (in U.S. dollars, in thousands, except percent data) Fair value as of December 31, Fair value as of June 30, Valuation Unobservable Six Months Ended December 31, Year Ended June 30, Relationship of unobservable inputs to Description 2020 2020 technique inputs ( 1) 2020 2020 fair value Contingent consideration provision 28,096 45,166 Discounted cash flows Risk adjusted discount rate 11%-13% (12.5%) 11%-13% (12.5%) Six months ended 31 December, 2020: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.4%. Year ended June 30, 2020: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.4%. Expected unit revenues n/a n/a Six months ended 31 December, 2020: A change in the price assumptions by 10% would increase/decrease the fair value by 4%. Year ended June 30, 2020: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 3%. Expected sales volumes n/a n/a Six months ended 31 December, 2020: A change in the volume assumptions by 10% would increase/decrease the fair value by 4%. Year ended June 30, 2020: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 3%. Probability of success Various Various Six months ended 31 December, 2020 : A change in the probability of success assumptions by 10% and 20% would increase/decrease the fair value by 8.5% and 17.0%, respectively. Year ended June 30, 2020: A 10% and 20% increase in the probability of success assumptions would increase the fair value by 9% and 12.9%, respectively, and a 10% and 20% decrease in the probability of success assumptions would decrease the fair value by 9% and 18%, respectively. (1) There were no significant inter-relationships between unobservable inputs that materially affect fair values. |
Disclosure of Detailed Information About Valuation Processes of Contingent Consideration at Fair Value Explanatory | As of December 31, As of June 30, The fair value of contingent consideration (in U.S. dollars, in thousands) 2020 2020 Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets 18,463 28,801 Fair value of royalty payments from commercialization of the intellectual property acquired 9,633 16,365 28,096 45,166 |
Non-financial Assets and Liab_2
Non-financial Assets and Liabilities (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Non Financial Assets And Liabilities [Abstract] | |
Summary of Intangible Assets | b. Intangible assets (in U.S. dollars, in thousands) Goodwill Acquired to In-process research development acquired Current marketed products Total Year Ended June 30, 2020 Opening net book amount 134,453 1,744 427,779 19,150 583,126 Additions — 50 — — 50 Exchange differences — (2 ) — 1 (1 ) Amortization charge — (119 ) — (1,455 ) (1,574 ) Closing net book amount 134,453 1,673 427,779 17,696 581,601 As of June 30, 2020 Cost 134,453 2,862 489,698 24,000 651,013 Accumulated amortization — (1,189 ) — (6,304 ) (7,493 ) Accumulated impairment — — (61,919 ) — (61,919 ) Net book amount 134,453 1,673 427,779 17,696 581,601 Six Months Ended December 31, 2020 Opening net book amount 134,453 1,673 427,779 17,696 581,601 Additions — 500 — — 500 Exchange differences — — — (1 ) (1 ) Amortization charge — (43 ) — (727 ) (770 ) Closing net book amount 134,453 2,130 427,779 16,968 581,330 As of December 31, 2020 Cost 134,453 3,419 489,698 23,998 651,568 Accumulated amortization — (1,289 ) — (7,030 ) (8,319 ) Accumulated impairment — — (61,919 ) — (61,919 ) Net book amount 134,453 2,130 427,779 16,968 581,330 |
Summary of Carrying Value of In Process Research and Development Acquired by Product | As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Cardiovascular products ( 1) 254,351 254,351 Intravenous products for metabolic diseases and inflammatory/immunologic conditions ( 2) 70,730 70,730 MSC products ( 3) 102,698 102,698 427,779 427,779 (1) Includes MPC-150-IM for the treatment or prevention of chronic heart failure and MPC-25-IC for the treatment or prevention of acute myocardial infarction (2) Includes MPC-300-IV for the treatment of biologic-refractory rheumatoid arthritis and diabetic nephropathy (3) Includes remestemcel-L for the treatment of children with SR-aGVHD and remestemcel-L for the treatment of Crohn’s disease |
Summary of Provisions | As of As of December 31, 2020 June 30, 2020 (in U.S. dollars, in thousands) Current Non-current Total Current Non-current Total Contingent consideration 10,933 17,163 28,096 19,699 25,467 45,166 Employee benefits 3,624 113 3,737 5,748 83 5,831 Provision for license agreements 3,750 2,165 5,915 3,750 2,013 5,763 18,307 19,441 37,748 29,197 27,563 56,760 |
Summary of Deferred Tax Balances | (i) Deferred tax balances As of December 31, As of June 30, (in U.S. dollars, in thousands) 2020 2020 Deferred tax assets The balance comprises temporary differences attributable to: Tax losses 73,376 72,899 Other temporary differences 6,741 6,196 Total deferred tax assets 80,117 79,095 Deferred tax liabilities The balance comprises temporary differences attributable to: Intangible assets 80,117 79,825 Total deferred tax liabilities 80,117 79,825 Net deferred tax liabilities — 730 Deferred tax assets expected to be settled within 12 months — — Deferred tax assets expected to be settled after 12 months 80,117 79,095 Deferred tax liabilities expected to be settled within 12 months 144 99 Deferred tax liabilities expected to be settled after 12 months 79,973 79,726 |
Schedule of Movements Related to Deferred Tax Assets and Liabilities | (ii) Movements (in U.S. dollars, in thousands) Tax losses ( 1) (DTA) Other temporary differences ( 1) (DTA) Intangible assets (DTL) Total (DTL) As of June 30, 2019 (61,742 ) (3,687 ) 76,553 11,124 Charged/(credited) to: - profit or loss (10,727 ) (1,960 ) 3,272 (9,415 ) - directly to equity (430 ) (549 ) — (979 ) As of June 30, 2020 (72,899 ) (6,196 ) 79,825 730 Charged/(credited) to: - profit or loss 106 (1,054 ) 292 (656 ) - directly to equity (583 ) 509 — (74 ) As of December 31, 2020 (73,376 ) (6,741 ) 80,117 — (1) Deferred tax assets are netted against deferred tax liabilities |
Cash flow information (Tables)
Cash flow information (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Statement Of Cash Flows [Abstract] | |
Summary of Cash Flow Information | (in U.S. dollars, in thousands) As of December 31, As of June 30, (a) Reconciliation of cash and cash equivalents 2020 2020 Cash at bank 77,066 128,916 Deposits at call 462 412 77,528 129,328 (in U.S. dollars, in thousands) Six months ended December 31, (b) Reconciliation of net cash flows used in operations with loss after income tax 2020 2019 Loss for the period (50,236 ) (30,067 ) Add/(deduct) net loss for non-cash items as follows: Depreciation and amortization 2,052 1,715 Foreign exchange (gains)/losses (417 ) (375 ) Finance costs 5,134 4,343 Remeasurement of borrowing arrangements (3,955 ) (779 ) Remeasurement of contingent consideration (16,569 ) 882 Equity settled share-based payment 8,421 2,447 Deferred tax benefit (656 ) (4,202 ) Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables (1,727 ) (620 ) Decrease/(increase) in prepayments (3,238 ) (778 ) Decrease/(increase) in tax assets — 1,499 Increase/(decrease) in trade creditors and accruals 3,189 5,910 Increase/(decrease) in provisions (2,127 ) 637 Increase/(decrease) in deferred consideration — 2,500 Net cash outflows used in operations (60,129 ) (16,888 ) |
Issued capital (Tables)
Issued capital (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Schedule of Share Capital | (i) Share capital As of December 31, 2020 2019 2020 2019 Shares No. (U.S. dollars, in thousands) Contributed equity (i) Share capital Ordinary shares 587,586,780 536,779,434 1,065,539 959,635 Less: Treasury Shares (583,314 ) (3,500,000 ) — — Total Contributed Equity 587,003,466 533,279,434 1,065,539 959,635 |
Summary of Movements in Ordinary Share Capital | (ii) Movements in ordinary share capital As of December 31, As of December 31, 2020 2019 2020 2019 Shares No. (U.S. dollars, in thousands) Opening balance 583,949,612 498,626,208 1,051,450 910,405 Issues of ordinary shares during the period Exercise of share options ( 1) — 653,226 8,136 390 Transfer to employee share trust ( 1) 2,450,000 — — — Share based compensation for services rendered 1,187,168 — 1,867 — Placement of shares under a share placement agreement ( 2) — 37,500,000 — 50,663 Transaction costs arising on share issue — — (196 ) (2,164 ) 3,637,168 38,153,226 9,807 48,889 Share options reserve transferred to equity on exercise of options — — 4,282 341 Ending balance 587,586,780 536,779,434 1,065,539 959,635 (1) Options are issued to employees, directors and consultants in accordance with the Mesoblast Employee Share Option Plan. From July 1, 2020, unpaid shares are issued to the share trust to enable future option exercises to be settled. On exercise of options, the proceeds of the exercise are recorded in ordinary share capital in Mesoblast Limited and the exercise is settled by transfer of the shares from the share trust to the employee. Prior to July 1, 2020, the shares issued and share capital received on the exercise of options were recorded in ordinary share capital. (2) During the six months ended December 31, 2019, 37,500,000 shares were issued in an equity purchase of Mesoblast Limited at A$2.00 per share to existing and new institutional investors, representing a 3.15% discount to the 10 day volume weighted average price calculated at the close of trading September 30, 2019. |
Summary of Movements of Shares in Share Trust | (iii) Movements of shares in share trust As of December 31, As of December 31, 2020 2019 2020 2019 Shares No. (U.S. dollars, in thousands) Opening balance ( 1) 3,500,000 3,500,000 — — Movement of shares in share trust Transfer to employee share trust ( 2) 2,450,000 — — — Exercise of share options ( 2) (5,366,686 ) — — — Ending balance 583,314 3,500,000 — — (1) In July 2020, the Group formed the Mesoblast Employee Share Trust, being a new trust formed to administer the Group’s employee share scheme. Prior to forming the new trust, the Group had been using the Mesoblast Limited Employee Share Trust for administering some aspects of the Group’s employee share scheme. In July 2020, 3,500,000 shares were transferred from Mesoblast Limited Employee Share Trust to the Mesoblast Employee Share Trust. These trusts have been consolidated, as the substance of the relationship is that the trusts are controlled by the Group. (2) Options are issued to employees, directors and consultants in accordance with the Mesoblast Employee Share Option Plan. From July 1, 2020, unpaid shares are issued to the share trust to enable future option exercises to be settled. On exercise of options, the proceeds of the exercise are recorded in ordinary share capital in Mesoblast Limited and the exercise is settled by transfer of the shares from the share trust to the employee. Prior to July 1, 2020, the shares issued and share capital received on the exercise of options were recorded in ordinary share capital. |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Financial Risk Management [Abstract] | |
Summary of Borrowings of Interest Rate Changes | The exposure of the Group’s borrowing to interest rate changes are as follows: As of As of December 31, 2020 June 30, 2020 (in U.S. dollars, in thousands, except percent data) Total % of total loans Total % of total loans Financial liabilities Current borrowings Variable rate borrowings - Hercules 41,205 45 % 27,949 31 % Non-current borrowings Variable rate borrowings - Hercules 10,422 11 % 21,951 25 % 51,627 56 % 49,900 56 % |
Schedule of Borrowings which Expose Interest Rate Risk Together with the Maximum and Minimum Interest Rates Being Earned | The effect on profit is shown if interest rates change by 5%, in either direction, is as follows: As of As of December 31, 2020 June 30, 2020 (in U.S. dollars, in thousands, except percent data) Low High USD Low High USD Borrowings - USD 9.70 % 9.70 % 51,627 (1) 9.70 % 9.70 % 49,900 (1) Rate increase by 5% 10.19 % 10.19 % 243 10.19 % 10.19 % 243 Rate decrease by 5% 9.22 % 9.22 % (243 ) 9.22 % 9.22 % (243 ) (1) Effect on profit/loss of interest rate changes is based on the loan principal amount of $50.0 million as of December 31, 2020, and June 30, 2020. |
Schedule of Deposits Held which Derive Interest Revenue with Maximum and Minimum Interest Rates Being Earned | The deposits held which derive interest revenue are described in the table below, together with the maximum and minimum interest rates being earned as of December 31, 2020 and June 30, 2020. The effect on profit is shown if interest rates change by 10%, in either direction, is as follows: As of As of December 31, 2020 June 30, 2020 (in U.S. dollars, in thousands, except percent data) Low High USD Low High USD Funds invested - USD 0.00% ( 1) 0.00% ( 1) 50,576 0.03 % 0.03 % 102,925 Rate increase by 10% 0.03% ( 1) 0.03% ( 1) 0 0.03 % 0.03 % 3 Rate decrease by 10% 0.03% ( 1) 0.03% ( 1) 0 0.03 % 0.03 % (3 ) AUD Low High AUD Low High AUD Funds invested - AUD 0.40 % 0.40 % 600 0.86 % 0.86 % 600 Rate increase by 10% 0.44 % 0.44 % 0 0.95 % 0.95 % 1 Rate decrease by 10% 0.36 % 0.36 % (0 ) 0.77 % 0.77 % (1 ) (1) The interest rate reduced to 0% for the period ended December 31, 2020. The sensitivity assumes the interest rate to increase or decrease by 0.03%, which is the opening rate on July 1, 2020. |
Summary of Borrowing to Price Rate Changes | The exposure of the Group’s borrowing to price rate changes are as follows: As of As of December 31, 2020 June 30, 2020 (in U.S. dollars, in thousands, except percent data) Total % of total loans Total % of total loans Financial liabilities Current borrowings Borrowings - NovaQuest 367 0 % 4,506 5 % Non-current borrowings Borrowings - NovaQuest 38,663 44 % 35,072 39 % 39,030 44 % 39,578 44 % |
Schedule of Maturity Profile of Anticipated Future Contractual Cash Flows Carrying Value | As of December 31, 2020, the maturity profile of the anticipated future contractual cash flows on an undiscounted basis, and which therefore differs from the carrying value, is as follows: (in U.S. dollars, in thousands) Within 1 year Between 1-2 years Between 2-5 years Over 5 years Total contractual cash flows Carrying amount Borrowings ( 1)(2)(3) (45,558 ) (18,552 ) (43,903 ) (30,273 ) (138,286 ) (90,657 ) Trade payables (28,610 ) — — — (28,610 ) (28,610 ) Lease liabilities (3,043 ) (2,523 ) (4,566 ) (218 ) (10,350 ) (9,064 ) (77,211 ) (21,075 ) (48,469 ) (30,491 ) (177,246 ) (128,331 ) (1) Contractual cash flows include payments of principal, interest and other charges. Interest is calculated based on debt held at December 31, 2020 without taking into account drawdowns of further tranches. (2) In relation to the contractual maturities of the NovaQuest borrowings, there is variability in the maturity profile of the anticipated future contractual cash flows given the timing and amount of payments are calculated based on our estimated net sales of remestemcel-L for the treatment of pediatric SR-aGVHD . (3) In January 2021, as disclosed in Note 11, the Group amended the terms of the Hercules loan agreement to extend the interest-only period of the loan up to March 2022, subject to achieving certain milestones. Presentation at December 31, 2020 has not been changed as a result of this amendment. |
(Losses)_earnings per share (Ta
(Losses)/earnings per share (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of (Loss) Earnings Per Share | Three Months Ended Six Months Ended December 31, 2020 Cents December 31, 2019 Cents December 31, 2020 Cents December 31, 2019 Cents (Losses) per share (in cents) (a) Basic (losses) per share From continuing operations attributable to the ordinary equity holders of the company (4.38 ) (4.60 ) (8.60 ) (5.82 ) Total basic (losses) per share attributable to the ordinary equity holders of the company (4.38 ) (4.60 ) (8.60 ) (5.82 ) (b) Diluted (losses) per share From continuing operations attributable to the ordinary equity holders of the company (4.38 ) (4.60 ) (8.60 ) (5.82 ) Total basic (losses) per share attributable to the ordinary equity holders of the company (4.38 ) (4.60 ) (8.60 ) (5.82 ) (c) Reconciliation of (losses) used in calculating (losses) per share (in U.S. dollars, in thousands) Basic (losses) per share (Losses) attributable to the ordinary equity holders of the company used in calculating basic (losses) per share: From continuing operations (25,692 ) (24,584 ) (50,236 ) (30,067 ) Diluted (losses) per share (Losses) from continuing operations attributable to the ordinary equity holders of the company: Used in calculating basic (losses) per share (25,692 ) (24,584 ) (50,236 ) (30,067 ) (Losses) attributable to the ordinary equity holders of the company used in calculating diluted losses per share (25,692 ) (24,584 ) (50,236 ) (30,067 ) Three Months Ended Six Months Ended December 31, 2020 (In Shares) December 31, 2019 (In Shares) December 31, 2020 (In Shares) December 31, 2019 (In Shares) Weighted average number of ordinary shares used as the denominator in calculating basic losses per share 586,354,061 534,410,263 584,421,843 516,855,836 Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted losses per share 586,354,061 534,410,263 584,421,843 516,855,836 |
Basis of Preparation - Addition
Basis of Preparation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||
Comprehensive (loss) after income tax | $ (24,841) | $ (24,577) | $ (48,896) | $ (30,757) | ||
Net cash outflows in operating activities | 60,129 | 16,888 | ||||
Cash & cash equivalents | $ 77,528 | $ 81,348 | $ 77,528 | $ 81,348 | $ 129,328 | $ 50,426 |
Significant Changes in the Cu_2
Significant Changes in the Current Reporting Period - Additional Information (Details) - USD ($) | Nov. 20, 2020 | Jan. 31, 2021 | Aug. 31, 2020 | Dec. 31, 2020 |
Disclosure Of Significant Changes In Current Reporting Period [Line Items] | ||||
Description of top-line results from DREAM-HF Phase 3 | In December 2020, the Group announced top-line results from the DREAM-HF Phase 3 randomized controlled trial of its allogeneic cell therapy rexlemestrocel-L in 537 patients with advanced chronic heart failure. Over a mean 30 months of follow-up, patients with advanced chronic heart failure who received a single endomyocardial treatment with rexlemestrocel-L on top of maximal therapies had 60% reduction in incidence of heart attacks or strokes and 60% reduction in death from cardiac causes when treated at an earlier stage in the progressive disease process. Despite significant reduction in the pre-specified endpoint of cardiac death, there was no reduction in recurrent non-fatal decompensated heart failure events, which was the trial’s primary endpoint. | |||
Hercules Capital, Inc. | ||||
Disclosure Of Significant Changes In Current Reporting Period [Line Items] | ||||
Description of principal repayment | In August 2020, the Group amended the terms of the Hercules loan agreement to defer principal repayments to March 2021. In January 2021, as disclosed in Note 11, the Group amended the terms of the loan agreement to extend the interest-only period of the loan up to March 2022, subject to achieving certain milestones. Presentation at December 31, 2020 has not been changed as a result of this amendment. | |||
Principal repayment due term | 2021-03 | |||
Novartis | License and Collaboration Agreement | ||||
Disclosure Of Significant Changes In Current Reporting Period [Line Items] | ||||
Description of license and collaboration agreement | In November 2020, the Group has entered into a worldwide license and collaboration agreement with Novartis for the development, manufacture, and commercialization of the Group’s mesenchymal stromal cell (MSC) product remestemcel-L, with an initial focus on the development of the treatment of acute respiratory distress syndrome (ARDS), including that associated with COVID-19. The closing of the license agreement is subject to certain conditions. The Group has enrolled 223 patients in its randomized controlled trial of remestemcel-L in ventilator-dependent patients with moderate to severe ARDS due to COVID-19 infection. Following the third interim analysis on the trial’s first 180 patients last month, the Data Safety Monitoring Board (DSMB) reported that there were no safety concerns but noted that the trial was not likely to meet the 30-day mortality reduction endpoint at the planned 300 patient enrolment. The trial was powered to achieve a primary endpoint of 43% reduction in mortality at 30 days for treatment with remestemcel-L on top of maximal care. The DSMB recommended that the trial complete with the currently enrolled 223 patients, and that all be followed-up as planned. Notably, the trial has not yet accrued data on the secondary endpoints, which include days alive off mechanical ventilation at 60 days post randomization, overall survival, days in intensive care, duration of hospitalization, and cardiac, neurological, and pulmonary organ damage. Additionally, measures of circulating cytokines and inflammatory markers will be evaluated. None of these were included in the interim analysis. As such, the trial will evaluate all 223 enrolled patients through 60 days of follow-up to study potential treatment effects on these outcomes. | |||
Upfront payment including equity related to license and collaboration agreement | $ 50,000,000 | |||
Upfront payment, equity portion | 25,000,000 | |||
Proceeds from pending achievement of pre-commercialization milestones | 505,000,000 | |||
Additional payments for post-commercialization | $ 750,000,000 | |||
Loan Agreement | Hercules Capital, Inc. | Top of Range | Events After Reporting Period | ||||
Disclosure Of Significant Changes In Current Reporting Period [Line Items] | ||||
Principal repayment due term | 2022-03 |
Loss Before Income Tax - Summar
Loss Before Income Tax - Summary of Loss Before Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | ||||
Commercialization revenue | $ 2,191 | $ 1,969 | $ 3,480 | $ 3,841 |
Milestone revenue | 15,000 | |||
Interest revenue | 5 | 237 | 21 | 413 |
Other revenue | 45 | 45 | ||
Total Revenue | 2,241 | 2,206 | 3,546 | 19,254 |
Clinical trial and research & development | (4,913) | (8,225) | (13,410) | (13,827) |
Manufacturing production & development | (5,910) | (3,661) | (17,678) | (4,956) |
Employee benefits | ||||
Salaries and employee benefits | (7,586) | (6,498) | (14,767) | (11,228) |
Defined contribution superannuation expenses | (107) | (91) | (191) | (166) |
Equity settled share-based payment transactions | (3,540) | (1,643) | (8,421) | (2,447) |
Total Employee benefits | (11,233) | (8,232) | (23,379) | (13,841) |
Depreciation and amortization of non-current assets | ||||
Plant and equipment depreciation | (232) | (115) | (443) | (220) |
Right of use asset depreciation | (430) | (356) | (839) | (707) |
Intellectual property amortization | (387) | (394) | (770) | (788) |
Total Depreciation and amortization of non-current assets | (1,049) | (865) | (2,052) | (1,715) |
Other Management & administration expenses | ||||
Overheads & administration | (1,929) | (2,321) | (3,746) | (4,885) |
Consultancy | (1,190) | (1,016) | (2,996) | (2,161) |
Legal, patent and other professional fees | (1,620) | (1,087) | (2,895) | (3,979) |
Intellectual property expenses (excluding the amount amortized above) | (711) | (658) | (1,280) | (1,252) |
Total Other Management & administration expenses | (5,450) | (5,082) | (10,917) | (12,277) |
Fair value remeasurement of contingent consideration | ||||
Remeasurement of contingent consideration | 1,462 | (595) | 16,569 | (882) |
Total Fair value remeasurement of contingent consideration | 1,462 | (595) | 16,569 | (882) |
Other operating income and expenses | ||||
Government grant revenue | 17 | |||
Foreign exchange gains/(losses) | 296 | 143 | 378 | 375 |
Total Other operating income and expenses | 296 | 143 | 395 | 375 |
Finance (costs)/gains | ||||
Remeasurement of borrowing arrangements | (2,932) | (1,060) | (3,955) | (779) |
Interest expense | (3,994) | (3,602) | (7,921) | (7,179) |
Total Finance costs | (1,062) | (2,542) | (3,966) | (6,400) |
Loss before income tax | $ (25,618) | $ (26,853) | $ (50,892) | $ (34,269) |
Loss Before Income Tax - Summ_2
Loss Before Income Tax - Summary of Loss Before Income Tax (Parenthetical) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Loss Before Income Tax Line Item | ||||
Equity settled share-based payment transactions | $ 3,540,000 | $ 1,643,000 | $ 8,421,000 | $ 2,447,000 |
Other operating income and expenses | 296,000 | 143,000 | 395,000 | 375,000 |
Finance costs | 1,062,000 | 2,542,000 | 3,966,000 | 6,400,000 |
Previously Reported | ||||
Disclosure Of Loss Before Income Tax Line Item | ||||
Other operating income and expenses | 440,000 | 39,000 | ||
Finance costs | 620,000 | 740,000 | ||
Currently Reported | ||||
Disclosure Of Loss Before Income Tax Line Item | ||||
Finance costs | 1,060,000 | 779,000 | ||
Effect of Change | ||||
Disclosure Of Loss Before Income Tax Line Item | ||||
Other operating income and expenses | (440,000) | (39,000) | ||
Finance costs | 440,000 | 39,000 | ||
Income Statement Functional Expense Categories | ||||
Disclosure Of Loss Before Income Tax Line Item | ||||
Equity settled share-based payment transactions | 3,539,491 | 1,643,134 | 8,420,728 | 2,446,932 |
Income Statement Functional Expense Categories | Research and Development | ||||
Disclosure Of Loss Before Income Tax Line Item | ||||
Equity settled share-based payment transactions | 2,298,879 | 650,488 | 5,134,601 | 970,168 |
Income Statement Functional Expense Categories | Manufacturing and Commercialization | ||||
Disclosure Of Loss Before Income Tax Line Item | ||||
Equity settled share-based payment transactions | 170,859 | 86,336 | 365,175 | 139,916 |
Income Statement Functional Expense Categories | Management and Administration | ||||
Disclosure Of Loss Before Income Tax Line Item | ||||
Equity settled share-based payment transactions | $ 1,069,753 | $ 906,310 | $ 2,920,952 | $ 1,336,848 |
Loss Before Income Tax - Additi
Loss Before Income Tax - Additional Information (Details) € in Millions | Oct. 12, 2018USD ($) | Sep. 14, 2018USD ($) | Dec. 31, 2019USD ($) | Oct. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($)Obligation | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 21, 2019EUR (€) |
Disclosure Of Loss Before Income Tax Line Item | |||||||||
Receipt on non refundable up-front payment upon reaching product regulatory milestone | $ 25,000,000 | ||||||||
Revenue recognized from up-front payment as deferred consideration | $ 10,000,000 | ||||||||
Pre-launch inventory recognized | 18,300,000 | $ 8,800,000 | |||||||
Manufacturing Commercialization Expenses | |||||||||
Disclosure Of Loss Before Income Tax Line Item | |||||||||
Pre-launch inventory recognized | 9,500,000 | ||||||||
Grunenthal | |||||||||
Disclosure Of Loss Before Income Tax Line Item | |||||||||
Non-refundable upfront payment received | $ 15,000,000 | ||||||||
Milestone payment received | $ 2,500,000 | ||||||||
Upfront payment related to license and collaboration agreement | $ 15,000,000 | ||||||||
Revenue recognized for right of use license of IP | $ 15,000,000 | 0 | $ 15,000,000 | ||||||
Revenue recognized relation to patent license agreement | $ 15,000,000 | $ 0 | 15,000,000 | ||||||
Grunenthal | IFRS 15 | |||||||||
Disclosure Of Loss Before Income Tax Line Item | |||||||||
Number of performance obligations | Obligation | 3 | ||||||||
Grunenthal | R&D and CMC services | |||||||||
Disclosure Of Loss Before Income Tax Line Item | |||||||||
Standalone selling price | $ 85,000,000 | ||||||||
Grunenthal | Other Development Services | |||||||||
Disclosure Of Loss Before Income Tax Line Item | |||||||||
Standalone selling price | 10,000,000 | ||||||||
Grunenthal | Clinical, Manufacturing, Regulatory and Reimbursement Approval | Top of Range | |||||||||
Disclosure Of Loss Before Income Tax Line Item | |||||||||
Non-refundable upfront payments receivable | 127,500,000 | ||||||||
Tasly | |||||||||
Disclosure Of Loss Before Income Tax Line Item | |||||||||
Deferred consideration up-front milestone receivable recognized | $ 20,000,000 | 20,000,000 | |||||||
Revenue recognized from up-front payment as deferred consideration | $ 10,000,000 | 0 | |||||||
TiGenix NV | Top of Range | |||||||||
Disclosure Of Loss Before Income Tax Line Item | |||||||||
Milestone revenue relating to non-refundable up-front payment | € | € 10 | ||||||||
JCR Pharmaceuticals Co. Ltd | |||||||||
Disclosure Of Loss Before Income Tax Line Item | |||||||||
Royalties receivable under sales-based milestones | $ 3,800,000 | $ 3,400,000 | $ 3,800,000 |
Income Tax Benefit_(Expense) -
Income Tax Benefit/(Expense) - Summary of Income Tax Expense/(Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax | ||||
(Increase)/decrease in deferred tax assets | $ (130) | $ (5,394) | $ (948) | $ (7,424) |
(Decrease)/increase in deferred tax liabilities | 204 | 3,125 | 292 | 3,222 |
Total deferred tax expense/(benefit) | 74 | (2,269) | (656) | (4,202) |
Income tax expense/(benefit) | $ 74 | $ (2,269) | $ (656) | $ (4,202) |
Income Tax Benefit_(Expense) _2
Income Tax Benefit/(Expense) - Summary of Deferred Tax Assets Not Brought to Account (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Unused tax losses | ||
Potential tax benefit at local tax rates | $ 71,397 | $ 55,573 |
Other temporary differences | ||
Potential tax benefit at local tax rates | 7,631 | 6,782 |
Other tax credits | ||
Potential tax benefit at local tax rates | 3,220 | 3,220 |
Net deferred tax assets not brought to account | $ 82,248 | $ 65,575 |
Income Tax Benefit_(Expense) _3
Income Tax Benefit/(Expense) - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Abstract] | ||
Deferred tax assets not brought to account | $ 82.2 | $ 65.6 |
Financial Assets and Liabilit_3
Financial Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||||||||
Jan. 31, 2021 | Aug. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Oct. 31, 2019 | Sep. 19, 2019 | Aug. 01, 2019 | Jun. 30, 2019 | Jan. 31, 2019 | Jun. 29, 2018 | Mar. 31, 2018 | |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Other non-current assets | $ 3,210 | $ 3,311 | ||||||||||
Interest-bearing deposits at call held as security | 500 | 400 | ||||||||||
Security deposit | 252 | 252 | ||||||||||
Borrowings | 90,657 | 89,478 | ||||||||||
Current liabilities | 91,040 | 90,143 | ||||||||||
Floating Interest Rate | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Borrowings | 51,627 | 49,900 | ||||||||||
Fixed interest rate [member] | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Borrowings | 48,094 | 49,414 | ||||||||||
Hercules Capital, Inc. | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Principal repayment due term | 2021-03 | |||||||||||
Remeasurement of borrowing arrangements within finance gains (Loss) | (100) | $ 600 | ||||||||||
Interest payable | $ 3,000 | |||||||||||
Hercules Capital, Inc. | Floating Interest Rate | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Borrowings principal amount | $ 75,000 | |||||||||||
Borrowings, interest rate | 9.70% | 9.95% | 10.20% | 10.45% | 9.45% | |||||||
Borrowings, maturity | March 2022 | |||||||||||
Principal repayment date | 2021-03 | |||||||||||
Hercules Capital, Inc. | Tranche One | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Borrowings | $ 50,000 | $ 50,000 | ||||||||||
Hercules Capital, Inc. | Tranche One | Floating Interest Rate | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Borrowings | $ 35,000 | |||||||||||
Hercules Capital, Inc. | Potential Ordinary Share Transactions | Tranche Two | Floating Interest Rate | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Borrowings | $ 15,000 | |||||||||||
Hercules Capital, Inc. | Terms of Loan Agreement | Floating Interest Rate | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Borrowings, interest rate | 9.70% | |||||||||||
NovaQuest Capital Management, L.L.C. | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Remeasurement of borrowing arrangements within finance gains (Loss) | $ 4,100 | $ 200 | ||||||||||
Description of repayment of borrowings | If there are no net sales of remestemcel-L for pediatric SR-aGVHD, the loan is only repayable on maturity in 2026. If in any annual period 25% of net sales of remestemcel-L for pediatric SR-aGVHD exceed the amount of accrued interest owing and, from 2022, principal and accrued interest owing (“the payment cap”), Mesoblast will pay the payment cap and an additional portion of excess sales which may be used for early prepayment of the loan. If in any annual period 25% of net sales of remestemcel-L for pediatric SR-aGVHD is less than the payment cap, then the payment is limited to 25% of net sales of remestemcel-L for pediatric SR-aGVHD. Any unpaid interest will be added to the principal amounts owing and shall accrue further interest. At maturity date, any unpaid loan balances are repaid. | |||||||||||
Current liabilities | $ 400 | |||||||||||
Loan administration fee payable, current | $ 400 | |||||||||||
NovaQuest Capital Management, L.L.C. | Fixed interest rate [member] | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Borrowings principal amount | $ 40,000 | |||||||||||
Borrowings, interest rate | 15.00% | |||||||||||
Borrowings, maturity | July 2026 | |||||||||||
Borrowings, interest rate basis | There is a four-year interest only period, until July 2022, with the principal repayable in equal quarterly instalments over the remaining period of the loan. The loan matures in July 2026. Interest on the loan will accrue at a fixed rate of 15% per annum. | |||||||||||
NovaQuest Capital Management, L.L.C. | Tranche One | Fixed interest rate [member] | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Borrowings | $ 30,000 | |||||||||||
Top of Range | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Trade receivables settlement period | 60 days | |||||||||||
Top of Range | Hercules Capital, Inc. | Events After Reporting Period | Loan Agreement | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Principal repayment due term | 2022-03 |
Financial Assets and Liabilit_4
Financial Assets and Liabilities - Summary of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||
Cash & cash equivalents | $ 77,528 | $ 129,328 | $ 81,348 | $ 50,426 |
Trade & other receivables | 3,342 | 1,574 | ||
Financial assets at fair value through other comprehensive income | 1,899 | 1,871 | ||
Other non-current assets | 3,210 | 3,311 | ||
Financial assets, Total | 85,979 | 136,084 | ||
Trade and other payables | 28,610 | 24,972 | ||
Borrowings | 90,657 | 89,478 | ||
Contingent consideration | 28,096 | 45,166 | ||
Financial liabilities, Total | 147,363 | 159,616 | ||
Liabilities at Amortized Cost | ||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||
Trade and other payables | 28,610 | 24,972 | ||
Borrowings | 90,657 | 89,478 | ||
Financial liabilities, Total | 119,267 | 114,450 | ||
Liabilities at FVTPL | ||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||
Contingent consideration | 28,096 | 45,166 | ||
Financial liabilities, Total | 28,096 | 45,166 | ||
Assets at Amortized Cost | ||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||
Cash & cash equivalents | 77,528 | 129,328 | ||
Trade & other receivables | 3,342 | 1,574 | ||
Other non-current assets | 3,210 | 3,311 | ||
Financial assets, Total | 84,080 | 134,213 | ||
Assets at FVOCI | ||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||
Financial assets at fair value through other comprehensive income | 1,899 | 1,871 | ||
Financial assets, Total | $ 1,899 | $ 1,871 |
Financial Assets and Liabilit_5
Financial Assets and Liabilities - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Disclosure Of Financial Assets And Liabilities [Abstract] | ||||
Cash at bank | $ 77,066 | $ 128,916 | ||
Deposits at call | 462 | 412 | ||
Cash and cash equivalents | $ 77,528 | $ 129,328 | $ 81,348 | $ 50,426 |
Financial Assets and Liabilit_6
Financial Assets and Liabilities - Summary of Cash and Cash Equivalents (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure Of Financial Assets And Liabilities [Abstract] | ||
Interest-bearing deposits at call held as security | $ 0.5 | $ 0.4 |
Financial Assets and Liabilit_7
Financial Assets and Liabilities - Summary of Trade and Other Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure Of Financial Assets And Liabilities [Abstract] | ||
Trade debtors | $ 2,233 | $ 678 |
Foreign withholding tax recoverable | 471 | 471 |
Security deposit | 252 | 252 |
Other recoverable taxes (Goods and services tax and value-added tax) | 386 | 173 |
Trade and other receivables | $ 3,342 | $ 1,574 |
Financial Assets and Liabilit_8
Financial Assets and Liabilities - Summary of Prepayments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure Of Financial Assets And Liabilities [Abstract] | ||
Clinical trial research and development expenditure | $ 3,214 | $ 3,304 |
Prepaid insurance and subscriptions | 4,180 | 1,337 |
Other | 2,194 | 1,005 |
Prepayments | $ 9,588 | $ 5,646 |
Financial Assets and Liabilit_9
Financial Assets and Liabilities - Summary of Trade and Other Payables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure Of Financial Assets And Liabilities [Abstract] | ||
Trade payables and other payables | $ 28,610 | $ 24,972 |
Trade and other payables | $ 28,610 | $ 24,972 |
Financial Assets and Liabili_10
Financial Assets and Liabilities - Summary of Borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Borrowings | ||
Borrowing arrangements | $ 80,000 | $ 80,000 |
Less: transaction costs | (6,738) | (6,738) |
Amortization of carrying amount, net of payments made | 17,395 | 16,216 |
Total borrowings | 90,657 | 89,478 |
Current | 41,571 | 32,455 |
Non-current | $ 49,086 | $ 57,023 |
Financial Assets and Liabili_11
Financial Assets and Liabilities - Summary of Net Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items] | ||||
Cash and cash equivalents | $ 77,528 | $ 129,328 | $ 81,348 | $ 50,426 |
Borrowings Repayable within one year | (44,123) | (35,974) | ||
Borrowings Repayable after one year | (55,598) | (63,340) | ||
Net Debt | (22,193) | 30,014 | ||
Gross debt | (90,657) | (89,478) | ||
Fixed interest rate [member] | ||||
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items] | ||||
Gross debt | (48,094) | (49,414) | ||
Floating Interest Rate | ||||
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items] | ||||
Gross debt | $ (51,627) | $ (49,900) |
Financial Assets and Liabili_12
Financial Assets and Liabilities - Summary of Net Debt (Parenthetical) (Details) - Hercules Capital, Inc. | 1 Months Ended | |
Jan. 31, 2021 | Aug. 31, 2020 | |
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items] | ||
Principal repayment due term | 2021-03 | |
Loan Agreement | Top of Range | Events After Reporting Period | ||
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items] | ||
Principal repayment due term | 2022-03 |
Financial Assets and Liabili_13
Financial Assets and Liabilities - Summary of Net Debt Reconciliation (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Abstract] | ||||
Liabilities from financing activities, Leases | $ 1,480 | |||
Liabilities from financing activities, Sub-total | 1,480 | |||
Net increase/(decrease) in cash and cash equivalents | (53,437) | $ 30,594 | ||
Cash Flows, Total | (51,957) | |||
Remeasurement of borrowing arrangements | 3,955 | |||
Other Changes | (5,017) | |||
Increase decrease in borrowing liabilities classified as financing activities | (5,134) | |||
Increase (decrease) in lease liabilities arising from operating activities | 117 | |||
Acquisition - leases | (395) | |||
Foreign exchange adjustments | 1,637 | 328 | ||
Foreign exchange adjustments | (430) | |||
Foreign exchange adjustments | 1,207 | |||
Net Debt | (22,193) | $ 30,014 | ||
Borrowings | (90,657) | (89,478) | ||
Leases | (9,064) | (9,836) | ||
Liabilities from financing activities | 99,721 | (99,314) | ||
Cash and cash equivalents | $ 77,528 | $ 81,348 | $ 129,328 | $ 50,426 |
Financial Assets and Liabili_14
Financial Assets and Liabilities - Summary of Financial Assets and Liabilities Measured and Recognized at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Financial assets at fair value through other comprehensive income: | ||
Total Financial Assets | $ 1,899 | $ 1,871 |
Financial liabilities at fair value through profit or loss: | ||
Contingent consideration | 28,096 | 45,166 |
Total Financial Liabilities | 28,096 | 45,166 |
Level 3 | ||
Financial assets at fair value through other comprehensive income: | ||
Total Financial Assets | 1,899 | 1,871 |
Financial liabilities at fair value through profit or loss: | ||
Contingent consideration | 28,096 | 45,166 |
Total Financial Liabilities | 28,096 | 45,166 |
Equity Securities | ||
Financial assets at fair value through other comprehensive income: | ||
Total Financial Assets | 1,899 | 1,871 |
Equity Securities | Level 3 | ||
Financial assets at fair value through other comprehensive income: | ||
Total Financial Assets | $ 1,899 | $ 1,871 |
Financial Assets and Liabili_15
Financial Assets and Liabilities - Summary of Changes in Fair Value of Level 3 Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Disclosure Of Financial Instruments [Line Items] | |||||
Remeasurement | $ (1,462) | $ 595 | $ (16,569) | $ 882 | |
Level 3 | |||||
Disclosure Of Financial Instruments [Line Items] | |||||
Opening balance | 45,166 | $ 45,166 | $ 45,166 | ||
Amount used during the period | (501) | (988) | |||
Remeasurement | (16,569) | (1,380) | |||
Closing balance | $ 28,096 | $ 28,096 | $ 45,166 |
Financial Assets and Liabili_16
Financial Assets and Liabilities - Summary of Changes in Fair Value of Level 3 Instruments (Parenthetical) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Level 3 | ||
Disclosure Of Financial Instruments [Line Items] | ||
Gain on re-measurement of contingent consideration provision | $ 16.6 | $ 1.3 |
Financial Assets and Liabili_17
Financial Assets and Liabilities - Summary of Quantitative Information About the Significant Unobservable Inputs Used in Level 3 Fair Value Measurements (Details) - Level 3 - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure Of Financial Instruments [Line Items] | ||||
Contingent consideration provision | $ 28,096 | $ 45,166 | $ 45,166 | $ 47,534 |
Unobservable inputs | Expected unit revenues | |||
Relationship of unobservable inputs to fair value | Six months ended 31 December, 2020: A change in the price assumptions by 10% would increase/decrease the fair value by 4%. Year ended June 30, 2020: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 3%. | |||
Discounted cash flow [member] | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Contingent consideration provision | $ 28,096 | $ 45,166 | ||
Valuation technique | Discounted cash flows | |||
Unobservable inputs | Risk adjusted discount rate | |||
Relationship of unobservable inputs to fair value | Six months ended 31 December, 2020: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.4%. Year ended June 30, 2020: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.4%. | |||
Discounted cash flow [member] | Weighted Average | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Range of inputs (weighted average) | (12.50%) | (12.50%) | ||
Discounted cash flow [member] | Bottom of Range | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Range of inputs (weighted average) | 11.00% | 11.00% | ||
Discounted cash flow [member] | Top of Range | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Range of inputs (weighted average) | 13.00% | 13.00% | ||
Expected Sales Volume | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Unobservable inputs | Expected sales volumes | |||
Relationship of unobservable inputs to fair value | Six months ended 31 December, 2020: A change in the volume assumptions by 10% would increase/decrease the fair value by 4%. Year ended June 30, 2020: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 3%. | |||
Probability of Success | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Unobservable inputs | Probability of success | |||
Relationship of unobservable inputs to fair value | Six months ended 31 December, 2020 : A change in the probability of success assumptions by 10% and 20% would increase/decrease the fair value by 8.5% and 17.0%, respectively. Year ended June 30, 2020: A 10% and 20% increase in the probability of success assumptions would increase the fair value by 9% and 12.9%, respectively, and a 10% and 20% decrease in the probability of success assumptions would decrease the fair value by 9% and 18%, respectively. |
Financial Assets and Liabili_18
Financial Assets and Liabilities - Summary of Valuation Processes of Contingent Consideration at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure Of Financial Instruments [Abstract] | ||
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets | $ 18,463 | $ 28,801 |
Fair value of royalty payments from commercialization of the intellectual property acquired | 9,633 | 16,365 |
Contingent Consideration | $ 28,096 | $ 45,166 |
Non-financial Assets and Liab_3
Non-financial Assets and Liabilities - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | $ 581,601 | $ 583,126 |
Additions | 500 | 50 |
Exchange differences | (1) | (1) |
Amortization charge | (770) | (1,574) |
Closing net book amount | 581,330 | 581,601 |
Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | 651,013 | |
Closing net book amount | 651,568 | 651,013 |
Accumulated Amortization | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | (7,493) | |
Closing net book amount | (8,319) | (7,493) |
Accumulated Impairment | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | (61,919) | |
Closing net book amount | (61,919) | (61,919) |
Goodwill | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | 134,453 | 134,453 |
Closing net book amount | 134,453 | 134,453 |
Goodwill | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | 134,453 | |
Closing net book amount | 134,453 | 134,453 |
Acquired Licenses to Patents | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | 1,673 | 1,744 |
Additions | 500 | 50 |
Exchange differences | (2) | |
Amortization charge | (43) | (119) |
Closing net book amount | 2,130 | 1,673 |
Acquired Licenses to Patents | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | 2,862 | |
Closing net book amount | 3,419 | 2,862 |
Acquired Licenses to Patents | Accumulated Amortization | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | (1,189) | |
Closing net book amount | (1,289) | (1,189) |
In-process Research and Development Acquired | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | 427,779 | 427,779 |
Closing net book amount | 427,779 | 427,779 |
In-process Research and Development Acquired | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | 489,698 | |
Closing net book amount | 489,698 | 489,698 |
In-process Research and Development Acquired | Accumulated Impairment | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | (61,919) | |
Closing net book amount | (61,919) | (61,919) |
Current Marketed Products | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | 17,696 | 19,150 |
Exchange differences | (1) | 1 |
Amortization charge | (727) | (1,455) |
Closing net book amount | 16,968 | 17,696 |
Current Marketed Products | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | 24,000 | |
Closing net book amount | 23,998 | 24,000 |
Current Marketed Products | Accumulated Amortization | ||
Disclosure Of Intangible Assets [Line Items] | ||
Opening net book amount | (6,304) | |
Closing net book amount | $ (7,030) | $ (6,304) |
Non-financial Assets and Liab_4
Non-financial Assets and Liabilities - Summary of Carrying Value of In Process Research and Development Acquired by Product (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 |
Disclosure Of Intangible Assets [Line Items] | |||
Carrying value of in process research and development | $ 581,330 | $ 581,601 | $ 583,126 |
In-process Research and Development Acquired | |||
Disclosure Of Intangible Assets [Line Items] | |||
Carrying value of in process research and development | 427,779 | 427,779 | $ 427,779 |
In-process Research and Development Acquired | Cardiovascular Products | |||
Disclosure Of Intangible Assets [Line Items] | |||
Carrying value of in process research and development | 254,351 | 254,351 | |
In-process Research and Development Acquired | Intravenous Products | |||
Disclosure Of Intangible Assets [Line Items] | |||
Carrying value of in process research and development | 70,730 | 70,730 | |
In-process Research and Development Acquired | MSC Products | |||
Disclosure Of Intangible Assets [Line Items] | |||
Carrying value of in process research and development | $ 102,698 | $ 102,698 |
Non-financial Assets and Liab_5
Non-financial Assets and Liabilities - Additional Information (Details) | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Segment |
Disclosure Of Non Financial Assets And Liabilities [Line Items] | |||
Number of reportable operating segment | Segment | 1 | ||
MSC Products | Discounted cash flow [member] | |||
Disclosure Of Non Financial Assets And Liabilities [Line Items] | |||
Real post-tax discount rate | 13.80% | ||
MPC-150-IM Product | Discounted cash flow [member] | |||
Disclosure Of Non Financial Assets And Liabilities [Line Items] | |||
Real post-tax discount rate | 15.50% | ||
In-process Research and Development Acquired | |||
Disclosure Of Non Financial Assets And Liabilities [Line Items] | |||
Impairment loss recognised in profit or loss | $ 0 | ||
In-process Research and Development Acquired | MSC Products | |||
Disclosure Of Non Financial Assets And Liabilities [Line Items] | |||
Impairment loss recognised in profit or loss | $ 0 | $ 0 | |
In-process Research and Development Acquired | MPC-150-IM Product | |||
Disclosure Of Non Financial Assets And Liabilities [Line Items] | |||
Impairment loss recognised in profit or loss | 0 | ||
Goodwill | |||
Disclosure Of Non Financial Assets And Liabilities [Line Items] | |||
Impairment loss recognised in profit or loss | $ 0 | ||
Goodwill | MSC Products | |||
Disclosure Of Non Financial Assets And Liabilities [Line Items] | |||
Impairment loss recognised in profit or loss | $ 0 | 0 | |
Goodwill | MPC-150-IM Product | |||
Disclosure Of Non Financial Assets And Liabilities [Line Items] | |||
Impairment loss recognised in profit or loss | $ 0 |
Non-financial Assets and Liab_6
Non-financial Assets and Liabilities - Summary of Provisions (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure Of Other Provisions [Line Items] | ||
Current provisions | $ 18,307 | $ 29,197 |
Non-current provisions | 19,441 | 27,563 |
Total provisions | 37,748 | 56,760 |
Contingent Consideration | ||
Disclosure Of Other Provisions [Line Items] | ||
Current provisions | 10,933 | 19,699 |
Non-current provisions | 17,163 | 25,467 |
Total provisions | 28,096 | 45,166 |
Employee Benefits | ||
Disclosure Of Other Provisions [Line Items] | ||
Current provisions | 3,624 | 5,748 |
Non-current provisions | 113 | 83 |
Total provisions | 3,737 | 5,831 |
Provision for License Agreements | ||
Disclosure Of Other Provisions [Line Items] | ||
Current provisions | 3,750 | 3,750 |
Non-current provisions | 2,165 | 2,013 |
Total provisions | $ 5,915 | $ 5,763 |
Non-financial Assets and Liab_7
Non-financial Assets and Liabilities - Summary of Deferred Tax Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Deferred tax assets | ||
Tax losses | $ 73,376 | $ 72,899 |
Other temporary differences | 6,741 | 6,196 |
Total deferred tax assets | 80,117 | 79,095 |
Deferred tax liabilities | ||
Intangible assets | 80,117 | 79,825 |
Total deferred tax liabilities | 80,117 | 79,825 |
Net deferred tax liabilities | 730 | |
Deferred tax assets expected to be settled after 12 months | 80,117 | 79,095 |
Deferred tax liabilities expected to be settled within 12 months | 144 | 99 |
Deferred tax liabilities expected to be settled after 12 months | $ 79,973 | $ 79,726 |
Non-financial Assets and Liab_8
Non-financial Assets and Liabilities - Schedule of Movements Related to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Deferred Tax Assets And Liabilities [Line Items] | ||
Beginning balance | $ 730 | $ 11,124 |
Charged/(credited) to: | ||
- profit or loss | (656) | (9,415) |
- directly to equity | (74) | (979) |
Ending balance | 0 | 730 |
Tax losses (DTA) | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
Beginning balance | (72,899) | (61,742) |
Charged/(credited) to: | ||
- profit or loss | 106 | (10,727) |
- directly to equity | (583) | (430) |
Ending balance | (73,376) | (72,899) |
Other Temporary Differences (DTA) | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
Beginning balance | (6,196) | (3,687) |
Charged/(credited) to: | ||
- profit or loss | (1,054) | (1,960) |
- directly to equity | 509 | (549) |
Ending balance | (6,741) | (6,196) |
Intangible Assets (DTL) | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
Beginning balance | 79,825 | 76,553 |
Charged/(credited) to: | ||
- profit or loss | 292 | 3,272 |
- directly to equity | 0 | 0 |
Ending balance | $ 80,117 | $ 79,825 |
Cash Flow Information - Summary
Cash Flow Information - Summary of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reconciliation of cash and cash equivalents | ||||||
Cash at bank | $ 77,066 | $ 77,066 | $ 128,916 | |||
Deposits at call | 462 | 462 | 412 | |||
Cash and cash equivalents | 77,528 | $ 81,348 | 77,528 | $ 81,348 | $ 129,328 | $ 50,426 |
Loss for the period | $ (25,692) | $ (24,584) | (50,236) | (30,067) | ||
Add/(deduct) net loss for non-cash items as follows: | ||||||
Depreciation and amortization | 2,052 | 1,715 | ||||
Foreign exchange (gains)/losses | (417) | (375) | ||||
Finance costs | 5,134 | 4,343 | ||||
Remeasurement of borrowing arrangements | (3,955) | (779) | ||||
Remeasurement of contingent consideration | (16,569) | 882 | ||||
Equity settled share-based payment | 8,421 | 2,447 | ||||
Deferred tax benefit | (656) | (4,202) | ||||
Change in operating assets and liabilities: | ||||||
Decrease/(increase) in trade and other receivables | (1,727) | (620) | ||||
Decrease/(increase) in prepayments | (3,238) | (778) | ||||
Decrease/(increase) in tax assets | 1,499 | |||||
Increase/(decrease) in trade creditors and accruals | 3,189 | 5,910 | ||||
Increase/(decrease) in provisions | (2,127) | 637 | ||||
Increase/(decrease) in deferred consideration | 2,500 | |||||
Net cash (outflows) in operating activities | $ (60,129) | $ (16,888) |
Issued Capital - Schedule of Sh
Issued Capital - Schedule of Share Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 |
Contributed equity | ||||||
Total Equity | $ 518,731 | $ 538,506 | $ 549,326 | $ 500,804 | $ 475,148 | $ 481,052 |
Ordinary Shares | ||||||
Contributed equity | ||||||
Ordinary shares | 587,586,780 | 583,949,612 | 536,779,434 | 498,626,208 | ||
Less: Treasury Shares | (583,314) | (3,500,000) | ||||
Total Contributed Equity | 587,003,466 | 533,279,434 | ||||
Ordinary shares | $ 1,065,539 | $ 959,635 | ||||
Total Equity | $ 1,065,539 | $ 1,051,450 | $ 959,635 | $ 910,405 |
Issued Capital - Summary of Mov
Issued Capital - Summary of Movements in Ordinary Share Capital (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | |
Disclosure Of Classes Of Share Capital [Line Items] | ||||
Beginning balance | $ 538,506 | $ 475,148 | $ 549,326 | $ 481,052 |
Transactions with owners in their capacity as owners: | ||||
Ending balance | $ 518,731 | $ 500,804 | $ 518,731 | $ 500,804 |
Issued Capital | ||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||
Beginning balance, Shares | shares | 583,949,612 | 498,626,208 | ||
Beginning balance | $ 1,051,450 | $ 910,405 | ||
Transactions with owners in their capacity as owners: | ||||
Exercise of share options ,shares | shares | 653,226 | |||
Exercise of share options | $ 8,136 | $ 390 | ||
Transfer to employee share trust, shares | shares | 2,450,000 | |||
Share based compensation for services rendered, shares | shares | 1,187,168 | |||
Share based compensation for services rendered | $ 1,867 | |||
Transaction costs arising on share issue | $ (196) | $ (2,164) | ||
Total contributions of equity during the period, shares | shares | 3,637,168 | 38,153,226 | ||
Total contributions of equity during the period | $ 9,807 | $ 48,889 | ||
Share options reserve transferred to equity on exercise of options | $ 4,282 | $ 341 | ||
Ending balance, Shares | shares | 587,586,780 | 536,779,434 | 587,586,780 | 536,779,434 |
Ending balance | $ 1,065,539 | $ 959,635 | $ 1,065,539 | $ 959,635 |
Issued Capital | Placement Agreement | ||||
Transactions with owners in their capacity as owners: | ||||
Placement of shares under a share placement agreement, shares | shares | 37,500,000 | |||
Placement of shares under a share placement agreement | $ 50,663 |
Issued Capital - Summary of M_2
Issued Capital - Summary of Movements in Ordinary Share Capital (Parenthetical) (Details) - Equity Purchase Fee - Tasly | 6 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Disclosure Of Classes Of Share Capital [Line Items] | |
Number of shares issued | shares | 37,500,000 |
Sale of equity price per share | $ / shares | $ 2 |
Discount percentage used to calculate equity purchase price per share | 3.15% |
Issued Capital - Summary of M_3
Issued Capital - Summary of Movements of Shares in Share Trust (Details) - Mesoblast Employee Share Trust - shares | 1 Months Ended | 6 Months Ended | |
Jul. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Movements Of Shares In Share Trust [Line Items] | |||
Opening balance, shares | 3,500,000 | 3,500,000 | 3,500,000 |
Transfer to employee share trust, shares | 3,500,000 | 2,450,000 | |
Exercise of share options ,shares | (5,366,686) | ||
Ending balance, shares | 583,314 | 3,500,000 |
Issued Capital - Summary of M_4
Issued Capital - Summary of Movements of Shares in Share Trust (Parenthetical) (Details) - shares | 1 Months Ended | 6 Months Ended |
Jul. 31, 2020 | Dec. 31, 2020 | |
Mesoblast Employee Share Trust | ||
Disclosure Of Movements Of Shares In Share Trust [Line Items] | ||
Shares transferred to employee share trust | 3,500,000 | 2,450,000 |
Financial Risk Management - Sum
Financial Risk Management - Summary of Borrowings of Interest Rate Changes (Details) - Interest Rate Risk - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of Financial Risk Management [Line Items] | ||
Percentage of loans | 56.00% | 56.00% |
Variable rate borrowings | $ 51,627 | $ 49,900 |
Hercules Capital, Inc. | Non-Current Borrowings | ||
Disclosure of Financial Risk Management [Line Items] | ||
Variable rate borrowings | $ 10,422 | $ 21,951 |
Percentage of loans | 11.00% | 25.00% |
Hercules Capital, Inc. | Current Borrowings | ||
Disclosure of Financial Risk Management [Line Items] | ||
Percentage of loans | 45.00% | 31.00% |
Variable rate borrowings | $ 41,205 | $ 27,949 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Disclosure of Financial Risk Management [Line Items] | ||
Change in interest rate effect on profit loss | 5.00% | |
Disclosure - Financial Risk Management - Additional Information (Details) [Line Items] | ||
Percentage of forecast net sales | 20.00% | |
Increase non-current borrowing | $ 0.3 | |
Decrease in profit | 0.3 | |
Decrease non-current borrowings | 0.3 | |
Increase in profit | $ 0.3 | |
Percentage of decrease in net sales | 20.00% | |
Lonza Bioscience Singapore Pte. Ltd | Manufacturing Service Agreement | ||
Disclosure of Financial Risk Management [Line Items] | ||
Non-cancellable term of lease and non-lease components | 4 years 6 months | |
Minimum financial commitment amount | $ 39.8 | |
Minimum financial commitment of the lease component | 4.6 | |
Minimum financial commitment of the non-lease component | 35.2 | |
Conditional reduction in minimum financial commitment | 23.1 | |
Conditional reduction in minimum financial commitment of the lease component | 3 | |
Conditional reduction in minimum financial commitment of the non-lease component | $ 20.1 | |
Interest Rate Risk | ||
Disclosure of Financial Risk Management [Line Items] | ||
Effect on profit from change in interest rates | 10.00% | 10.00% |
Liquidity Risk | ||
Disclosure of Financial Risk Management [Line Items] | ||
Non-interest bearing financial liabilities maturing period | 6 months | 6 months |
Financial Risk Management - Sch
Financial Risk Management - Schedule of Borrowings which Expose Interest Rate Risk Together with the Maximum and Minimum Interest Rates Being Earned (Details) - Interest Rate Risk - USD - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Disclosure of Financial Risk Management [Line Items] | ||
Borrowings | $ 51,627 | $ 49,900 |
Rate increase on borrowings | 243 | 243 |
Rate decrease on borrowings | $ (243) | $ (243) |
Bottom of Range | ||
Disclosure of Financial Risk Management [Line Items] | ||
Borrowings Interest rate | 9.70% | 9.70% |
Rate increase | 0.03% | 0.03% |
Rate decrease | 0.03% | 0.03% |
Bottom of Range | Borrowings | ||
Disclosure of Financial Risk Management [Line Items] | ||
Rate increase | 10.19% | 10.19% |
Rate decrease | 9.22% | 9.22% |
Top of Range | ||
Disclosure of Financial Risk Management [Line Items] | ||
Borrowings Interest rate | 9.70% | 9.70% |
Rate increase | 0.03% | 0.03% |
Rate decrease | 0.03% | 0.03% |
Top of Range | Borrowings | ||
Disclosure of Financial Risk Management [Line Items] | ||
Rate increase | 10.19% | 10.19% |
Rate decrease | 9.22% | 9.22% |
Financial Risk Management - S_2
Financial Risk Management - Schedule of Borrowings which Expose Interest Rate Risk Together with the Maximum and Minimum Interest Rates Being Earned (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of Financial Risk Management [Line Items] | ||
Principal amount of loans | $ 90,657 | $ 89,478 |
Hercules Capital, Inc. | Tranche One | ||
Disclosure of Financial Risk Management [Line Items] | ||
Principal amount of loans | $ 50,000 | $ 50,000 |
Financial Risk Management - S_3
Financial Risk Management - Schedule of Deposits Held which Derive Interest Revenue Together with the Maximum and Minimum Interest Rates Being Earned (Details) - Interest Rate Risk $ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2020AUD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020AUD ($) | |
USD | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Funds invested | $ 50,576 | $ 102,925 | ||
Rate increase on funds invested | 0 | 3 | ||
Rate decrease on funds invested | $ 0 | $ (3) | ||
USD | Bottom of Range | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Funds invested percentage | 0.00% | 0.00% | 0.03% | 0.03% |
Rate increase | 0.03% | 0.03% | 0.03% | 0.03% |
Rate decrease | 0.03% | 0.03% | 0.03% | 0.03% |
USD | Top of Range | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Funds invested percentage | 0.00% | 0.00% | 0.03% | 0.03% |
Rate increase | 0.03% | 0.03% | 0.03% | 0.03% |
Rate decrease | 0.03% | 0.03% | 0.03% | 0.03% |
AUD | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Funds invested | $ 600 | $ 600 | ||
Rate increase on funds invested | 0 | 1 | ||
Rate decrease on funds invested | $ 0 | $ (1) | ||
AUD | Bottom of Range | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Funds invested percentage | 0.40% | 0.40% | 0.86% | 0.86% |
Rate increase | 0.44% | 0.44% | 0.95% | 0.95% |
Rate decrease | 0.36% | 0.36% | 0.77% | 0.77% |
AUD | Top of Range | ||||
Disclosure of Financial Risk Management [Line Items] | ||||
Funds invested percentage | 0.40% | 0.40% | 0.86% | 0.86% |
Rate increase | 0.44% | 0.44% | 0.95% | 0.95% |
Rate decrease | 0.36% | 0.36% | 0.77% | 0.77% |
Financial Risk Management - S_4
Financial Risk Management - Schedule of Deposits Held which Derive Interest Revenue Together with the Maximum and Minimum Interest Rates Being Earned (Parenthetical) (Details) - Interest Rate Risk | Jul. 01, 2020 | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of Financial Risk Management [Line Items] | |||
Interest rate | 0.03% | 0.00% | |
USD | |||
Disclosure of Financial Risk Management [Line Items] | |||
Effect on profit from change in interest rate increase or decrease | 10.00% | 10.00% | |
AUD | |||
Disclosure of Financial Risk Management [Line Items] | |||
Effect on profit from change in interest rate increase or decrease | 10.00% | 10.00% |
Financial Risk Management - S_5
Financial Risk Management - Summary of Borrowing to Price Rate Changes (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of Financial Risk Management [Line Items] | ||
Current borrowings | $ 41,571 | $ 32,455 |
Borrowings | 49,086 | 57,023 |
Total borrowings | 90,657 | 89,478 |
Commodity price risk [member] | ||
Disclosure of Financial Risk Management [Line Items] | ||
Current borrowings | 367 | 4,506 |
Borrowings | 38,663 | 35,072 |
Total borrowings | $ 39,030 | $ 39,578 |
Percent of current borrowings | 0.00% | 5.00% |
Percent of non-current borrowings | 44.00% | 39.00% |
Percent of total loans | 44.00% | 44.00% |
Financial Risk Management - S_6
Financial Risk Management - Schedule of Maturity Profile of Anticipated Future Contractual Cash Flows Carrying Value (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | $ (177,246) |
Carrying amount | (128,331) |
Within 1 year [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (77,211) |
Between 1-2 years [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (21,075) |
Between 2-5 years [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (48,469) |
Over 5 years [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (30,491) |
Borrowings | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (138,286) |
Carrying amount | (90,657) |
Borrowings | Within 1 year [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (45,558) |
Borrowings | Between 1-2 years [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (18,552) |
Borrowings | Between 2-5 years [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (43,903) |
Borrowings | Over 5 years [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (30,273) |
Trade Payables [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (28,610) |
Carrying amount | (28,610) |
Trade Payables [Member] | Within 1 year [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (28,610) |
Lease Liabilities [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (10,350) |
Carrying amount | (9,064) |
Lease Liabilities [Member] | Within 1 year [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (3,043) |
Lease Liabilities [Member] | Between 1-2 years [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (2,523) |
Lease Liabilities [Member] | Between 2-5 years [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | (4,566) |
Lease Liabilities [Member] | Over 5 years [Member] | |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | |
Total contractual cash flows | $ (218) |
Financial Risk Management - S_7
Financial Risk Management - Schedule of Maturity Profile of Anticipated Future Contractual Cash Flows Carrying Value (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items] | ||
Borrowings recognized as current liability | $ 41,571 | $ 32,455 |
(Losses)_Earnings Per Share - S
(Losses)/Earnings Per Share - Summary of (Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
(a) Basic (losses) per share | ||||
From continuing operations attributable to the ordinary equity holders of the company | $ (4.38) | $ (4.60) | $ (8.60) | $ (5.82) |
Total basic (losses) per share attributable to the ordinary equity holders of the company | (4.38) | (4.60) | (8.60) | (5.82) |
(b) Diluted (losses) per share | ||||
From continuing operations attributable to the ordinary equity holders of the company | (4.38) | (4.60) | (8.60) | (5.82) |
Total basic (losses) per share attributable to the ordinary equity holders of the company | $ (4.38) | $ (4.60) | $ (8.60) | $ (5.82) |
(c) Reconciliation of (losses) used in calculating (losses) per share | ||||
From continuing operations | $ (25,692) | $ (24,584) | $ (50,236) | $ (30,067) |
Used in calculating basic (losses) per share | (25,692) | (24,584) | (50,236) | (30,067) |
(Losses) attributable to the ordinary equity holders of the company used in calculating diluted losses per share | $ (25,692) | $ (24,584) | $ (50,236) | $ (30,067) |
Weighted average number of ordinary shares used as the denominator in calculating basic losses per share | 586,354,061 | 534,410,263 | 584,421,843 | 516,855,836 |
Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted losses per share | 586,354,061 | 534,410,263 | 584,421,843 | 516,855,836 |
Events Occurring After the Re_2
Events Occurring After the Reporting Period - Additional Information (Details) - Hercules Capital, Inc. | 1 Months Ended | |
Jan. 31, 2021 | Aug. 31, 2020 | |
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | ||
Principal repayment due term | 2021-03 | |
Loan Agreement | Top of Range | Events After Reporting Period | ||
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | ||
Principal repayment due term | 2022-03 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Dec. 31, 2020Segment | |
Disclosure Of Operating Segments [Abstract] | |
Number of operating segment | 1 |