The key objective of the fundraising is to have sufficient capital to scale up the manufacturing of Remestemcel-L, the biotech's anti-inflammatory treatment used to treat graft-vs-host disease in children and is now trialling for acute respiratory distress caused by the coronavirus.

An early study of a dozen COVID-19 patients paved the way for broader clinical trials of the product, which are now occurring throughout the United States. It is hoped the treatment can help reduce mortality rates for patients who become seriously ill with COVID-19 by providing some relief to acute respiratory distress syndrome, a response where lung tissue gets destroyed in the fight against the virus.

While the results of the trials and the required US Food and Drug Administration approval are still some way off, Dr Itescu said the company had tapped investors to ensure it could capitalise on any good news. "This is how you build a company - you have to [focus] on development and commercialisation and manufacturing. You have to put the building blocks in place," he said.

Billionaire investor Alex Waislitz and chairman of Thorney Opportunities Fund, which is Mesoblast's third-largest shareholder with 6 per cent, said: "I think Meso is now finally well on the way to becoming a major Australian success story and Im hopeful the Australian government will recognise Mesos potential and encourage them to develop their stem cell manufacturing capabilities in Australia rather than lose them to another country such as the United States or elsewhere."

The $1.8 billion ASX-listed company's share price more than doubled between the end of March to the start of May on news of the coronavirus trials. Shares were down by 2 per cent to $3.36 in late trade on Wednesday.

Loading

The company could have a treatment available next year if all pieces fall into place, though Dr Itescu said a successful vaccine was critical. "We hope there will be a vaccine available in the next 12 months. Without a vaccine, the numbers [of COVID-19 patients] will overwhelm health systems," he said.

He predicted Australia had one of the best chances of any developed nations of stopping a second wave of the virus, but things looked less promising overseas. "Social distancing needs to be maintained and opening up needs to be very judicious. I think given how well it has been controlled, I think the opening up has a really good prospect of preventing it [second waves]."

Read more:
Mesoblast raises $138m from investors on hopes for COVID-19 treatment - Sydney Morning Herald