Late last year, Mesoblast announced positive topline results from its phase 2 trial of its mesenchymal precursor cells (MPCs) - see the press release here. In the 12-week, single-blind, dose escalation trial, 61 type 2 diabetes patients (mean diabetes duration of 10 years) from 18 sites in the US were randomized to receive a single intravenous infusion of 0.3, 1.0, or 2.0 million MPCs/kg or placebo. The highest dose of MPCs was associated with the greatest overall reduction in A1c: a placebo-adjusted peak decrease of 0.4% at eight weeks (p<0.05; baseline A1c not disclosed [ND]), and a reduction of 0.3% at 12 weeks (p-value ND). In patients with a baseline A1c of at least 8% (n = ND), a 0.6% drop in A1c was seen at eight weeks in the high-dose cohort compared to the placebo. Among those with an A1c <8% (n=8), 63% of those on the high dose achieved an A1c <7% at week 12, compared with none of the placebo-treated patients (n=7; p<0.05). This is a small study but intriguing numbers nonetheless! On the safety side, Mesoblast characterized the MPCs as being well tolerated and associated with no treatment-related adverse events (the trial's primary endpoint). As a reminder, Mesoblast recently broadened its diabetes portfolio by acquiring Osiris Therapeutics' Prochymal stem cell therapy for $100 million this past October (read the press release. Osiris was investigating the therapy in type 1 diabetes (phase 2), and we certainly hope that Mesoblast continues to investigate that application.