Document and Entity Information	6 Months Ended
Document and Entity Information	Dec. 31, 2018
Document And Entity Information [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	MESO
Entity Registrant Name	MESOBLAST LTD
Entity Central Index Key	0001345099
Current Fiscal Year End Date	--06-30

Consolidated Income Statement (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenue	$ 1,870	$ 13,397	$ 13,507	$ 14,571
Research & development	(15,488)	(16,222)	(33,975)	(31,590)
Manufacturing commercialization	(5,401)	(801)	(9,717)	(1,678)
Management and administration	(5,126)	(5,643)	(10,742)	(10,655)
Fair value remeasurement of contingent consideration	(11)	(793)	(634)	8,702
Other operating income and expenses	(827)	423	(978)	1,091
Finance costs	(2,486)		(5,139)
Loss before income tax	(27,469)	(9,639)	(47,678)	(19,559)
Income tax benefit	2,865	23,342	3,575	26,240
(Loss)/profit attributable to the owners of Mesoblast Limited	$ (24,604)	$ 13,703	$ (44,103)	$ 6,681
(Losses)/earnings per share from continuing operations attributable to the ordinary equity holders of the Group:
Basic - (losses)/earnings per share	$ (0.0500)	$ 0.0291	$ (0.0908)	$ 0.0146
Diluted - (losses)/earnings per share	$ (0.0500)	$ 0.0291	$ (0.0908)	$ 0.0146

Consolidated Statement of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Statement Of Comprehensive Income [Abstract]
(Loss)/profit for the period	$ (24,604)	$ 13,703	$ (44,103)	$ 6,681
Items that may be reclassified to profit and loss
Changes in the fair value of financial assets	108	47	195	67
Exchange differences on translation of foreign operations	(160)	(385)	(183)	(500)
Other comprehensive (loss)/income for the period, net of tax	(52)	(338)	12	(433)
Total comprehensive (losses)/income attributable to the owners of Mesoblast Limited	$ (24,656)	$ 13,365	$ (44,091)	$ 6,248

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
Beginning balance at Jun. 30, 2017	$ 516,766	$ 830,425	$ 69,919	$ (303)	$ (38,373)	$ (344,902)
Profit/(loss) for the period	6,681					6,681
Other comprehensive income/(loss)	(433)			67	(500)
Total comprehensive profit/(loss) for the period	6,248			67	(500)	6,681
Transactions with owners in their capacity as owners:
Contributions of equity net of transaction costs	48,564	48,564
Transactions with owners in their capacity as owners	48,564	48,564
Fair value of share-based payments	3,909		3,909
Reclassification of modified options to/(from) liability	118		118
Increase (decrease) in equity	4,027		4,027
Ending balance at Dec. 31, 2017	575,605	878,989	73,946	(236)	(38,873)	(338,221)
Beginning balance at Jun. 30, 2018	546,008	889,481	75,974	21	(39,276)	(380,192)
Profit/(loss) for the period	(44,103)					(44,103)
Other comprehensive income/(loss)	12			195	(183)
Total comprehensive profit/(loss) for the period	(44,091)			195	(183)	(44,103)
Transactions with owners in their capacity as owners:
Contributions of equity net of transaction costs	19,441	19,441
Transactions with owners in their capacity as owners	19,441	19,441
Transfer exercised options		313	(313)
Fair value of share-based payments	3,195		3,195
Reclassification of modified options to/(from) liability	4		4
Increase (decrease) in equity	3,199	313	2,886
Ending balance at Dec. 31, 2018	$ 524,557	$ 909,235	$ 78,860	$ 216	$ (39,459)	$ (424,295)

Consolidated Balance Sheet (unaudited) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Current Assets
Cash & cash equivalents	$ 77,022	$ 37,763
Trade & other receivables	3,934	50,366
Prepayments	16,845	12,942
Total Current Assets	97,801	101,071
Non-Current Assets
Property, plant and equipment	871	1,084
Financial assets at fair value through other comprehensive income	2,516	2,321
Other non-current assets	3,330	3,361
Intangible assets	583,815	584,606
Total Non-Current Assets	590,532	591,372
Total Assets	688,333	692,443
Current Liabilities
Trade and other payables	25,120	18,921
Provisions	5,594	5,082
Borrowings	3,095
Total Current Liabilities	33,809	24,003
Non-Current Liabilities
Deferred tax liability	16,504	20,079
Deferred consideration	10,000
Provisions	43,076	42,956
Borrowings	60,387	59,397
Total Non-Current Liabilities	129,967	122,432
Total Liabilities	163,776	146,435
Net Assets	524,557	546,008
Equity
Issued Capital	909,235	889,481
Reserves	39,617	36,719
(Accumulated losses)/retained earnings	(424,295)	(380,192)
Total Equity	$ 524,557	$ 546,008

Consolidated Statement of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Commercialization revenue received	$ 2,101	$ 1,080
Milestone payment received	26,409	6,125
Research and development tax incentive received	1,654
Payments to suppliers and employees (inclusive of goods and services tax)	(46,186)	(42,593)
Interest received	293	192
Interest paid	(1,783)
Income taxes (paid)/refunded	(3)	(25)
Net cash (outflows) in operating activities	(17,515)	(35,221)
Cash flows from investing activities
Investment in fixed assets	(112)	(137)
Payments for contingent consideration		(543)
Net cash (outflows) in investing activities	(112)	(680)
Cash flows from financing activities
Proceeds from borrowings	28,950
Payments of transaction costs from borrowings	(1,546)
Proceeds from issue of shares	30,258	40,532
Payments for share issue costs	(607)	(2,603)
Net cash inflows by financing activities	57,055	37,929
Net increase in cash and cash equivalents	39,428	2,028
Cash and cash equivalents at beginning of period	37,763	45,761
FX (losses) on the translation of foreign bank accounts	(169)	(403)
Cash and cash equivalents at end of period	$ 77,022	$ 47,386

Basis of preparation

6 Months Ended

Dec. 31, 2018

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, as issued by the International Accounting Standards Board (“IASB”), and are unaudited. These interim financial statements do not include all of the notes and disclosures required by International Financial Reporting Standards, as issued by the IASB, for annual consolidated financial statements and should therefore be read in conjunction with our annual report on Form 20-F for the year ended June 30, 2018.

Preparation of interim financial statements for users in multiple jurisdictions

The Company has prepared the interim financial statements to conform to the requirements and needs of users of the financial

statements located in both Australia and the U.S.

U.S. users: The Company has prepared the interim financial statements to conform to the requirements of IAS 34 Interim Financial Reporting. Consistent with U.S. domestic registrants, the Company has labelled the interim financial information “unaudited” because the interim financial information is not subject to an audit by our independent registered public accounting firm. The auditor’s independence declaration and independent auditor’s review report are included within this filing to meet the requirements of Australian laws and regulations and are furnished, not filed, for the purposes of incorporation of the related financial statements in any U.S. registration document.

Australian users: The Company has prepared the interim financial statements to conform to the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. A review of the interim financial information has been performed by the Company’s independent auditors to meet the requirements of Australian Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity and users should refer to the auditor’s independence declaration and independent auditor’s review report included within this filing.

(i) Going concern

For the six months ended December 31, 2018, and 2017, the Group incurred a total comprehensive loss after income tax of $44.1 million and gain after income tax of $6.2 million, respectively, and had net cash outflows from operations of $17.5 million, and $35.2 million, respectively. As of December 31, 2018, the Group held total cash and cash equivalents of $77.0 million. The Group also received $15.0 million of gross cash proceeds from drawing a further tranche of funding from its existing credit facility with Hercules Capital, Inc. (“Hercules”) in January 2019.

The Group has committed to entering into non-dilutive commercial partnering transactions to fund operations. The Group also continues to work on various cost containment and deferment strategies. A fully discretionary equity facility remains for up to A$120.0 million/US$90.0 million over the next 6 months to provide additional funds as required. The Group may also consider equity-based financing and drawing further debt funding on current debt arrangements to fund future operational requirements.

There is uncertainty related to the Group’s ability to partner programs, raise capital or debt at terms to meet the Group’s requirements. Additionally, there is uncertainty related to the Group’s ability to sustainably maintain implemented cost reductions and further defer programs on a timely basis while achieving expected outcomes.

The continuing viability of the Group and its ability to continue as a going concern and meet its debts and commitments as they fall due are dependent upon non-dilutive funding in the form of commercial partnering transactions or equity-based financing to fund future operations, together with maintaining implemented cost containment and deferment strategies.

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 the Group’s ability to continue as a going concern and that it may be unable to realize its assets and 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

Revenue recognition

The Group adopted IFRS 15 Revenue from Contracts with Customers on July 1, 2018, using the modified retrospective approach. Revenue from contracts with customers is measured and recognized in accordance with the five step model prescribed by the standard.

First, contracts with customers within the scope of IFRS 15 are identified. Distinct promises within the contract are identified as performance obligations. The transaction price of the contract is measured based on the amount of consideration the Group expects to be entitled from the customer in exchange for goods or services. Factors such as requirements around variable consideration, significant financing components, noncash consideration, or amounts payable to customers also determine the transaction price. The transaction is then allocated to separate performance obligations in the contract based on relative standalone selling prices. Revenue is recognized when, or as, performance obligations are satisfied, which is when control of the promised good or service is transferred to the customer. Revenues comprise commercialization and milestone revenue, research and development tax incentives and interest revenue.

There was no cumulative impact of the adoption of IFRS 15 Revenue from Contracts with Customers on July 1, 2018.

Revenues from contracts with customers comprise commercialization and milestone revenue. The Group also has revenue from research and development tax incentives and interest revenue.

Commercialization and milestone revenue

Commercialization and milestone revenue generally includes non-refundable up-front license and collaboration fees; milestone payments, the receipt of which is dependent on certain clinical, regulatory or commercial milestones; as well as royalties on product sales of licensed products, if and when such product sales occur; and revenue from the supply of products. Payment is generally due on standard terms of 30 to 60 days.

Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue or deferred consideration in our consolidated balance sheet, depending on the nature of the arrangement. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified within current liabilities. Amounts not expected to be recognized as revenue within 12 months following the balance sheet date are classified within non-current liabilities.

Milestone revenue

The Group applies the five-step method under the standard to measure and recognize milestone revenue.

The receipt of milestone payments is often contingent on meeting certain clinical, regulatory or commercial targets, and is therefore considered variable consideration. The Group estimate the transaction price of the contingent milestone using the most likely amount method. The Group includes in the transaction price some or all of the amount of the contingent milestone only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the contingent milestone is subsequently resolved. Milestone payments that are not within the control of the Group, such as regulatory approvals, are not considered highly probable of being achieved until those approvals are received. Any changes in the transaction price are allocated to all performance obligations in the contract unless the variable consideration relates only to one or more, but not all, of the performance obligations.

When consideration for milestones is a sale-based or usage-based royalty that arises from licenses of IP (such as cumulative net sales targets), revenue is recognized at the later of when (or as) the subsequent sale or usage occurs, or when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied).

Licenses of intellectual property

When licenses of IP are distinct from other goods or services promised in the contract, the Group recognizes the transaction price allocated to the license as revenue upon transfer of control of the license to the customer. The Group evaluates all other promised goods or services in the license agreement to determine if they are distinct. If they are not distinct, they are combined with other promised goods or services to create a bundle of promised goods or services that is distinct.

The transaction price allocated to the license performance obligation is recognized based on the nature of the license arrangement. The transaction price is recognized over time if the nature of the license is a “right to access” license. This is when the Group undertakes activities that significantly affect the IP to which the customer has rights, the rights granted by the license directly expose the customer to any positive or negative effects of the Group’s activities, and those activities do not result in the transfer of a good or service to the customer as those activities occur. When licenses do not meet the criteria to be a right to access license, the license is a “right to use” license, and the transaction price is recognized at the point in time when the customer obtains control over the license.

Sales-based or usage-based royalties

Licenses of IP can include royalties that are based on the customer’s usage of the IP or sale of products that contain the IP. The Group applies the specific exception to the general requirements of variable consideration and the constraint on variable consideration for sales-based or usage-based royalties promised in a license of IP. The exception requires such revenue to be recognized at the later of when (or as) the subsequent sale or usage occurs and the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied (or partially satisfied).

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 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 on September 14, 2018, the Group recognized $10.0 million in milestone revenue from the $20.0 million up-front technology access fee received from Tasly in October 2018 as this is the portion of revenue that control has been transferred to Tasly. The Group recognized the remaining $10.0 million from the $20.0 million up-front payment as deferred consideration on the consolidated balance sheet. The deferred consideration amount will be recognized in revenue when and if control transfers to Tasly based on the Group’s decision regarding the exercise of the Group’s rights in the terms and conditions of the agreement.

No milestone revenue was recognized in relation to this strategic alliance with Tasly in the six months ended December 31, 2017.

TiGenix arrangement

In December 2017, the Group entered into a patent license agreement with TiGenix NV, 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®, previously known as Cx601, a product candidate of Takeda, for the local treatment of fistulae. The agreement includes the right for Takeda to grant sub-licenses to affiliates and third parties.

As part of the agreement, the Group received $5.9 million (€5.0 million) as a non-refundable up-front payment and recognized this amount in revenue in December 2017 upon receipt. In December 2018, the Group received a milestone payment of €5.0 million, the Group recognized revenue of $5.9 million (€5.0 million) pertaining to this milestone in December 2017 as all performance obligations had been satisfied at that time. 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 six months ended December 31, 2017, we recognized $11.8 million in milestone revenue in relation to our patent license agreement with Takeda. Within this $11.8 million, $5.9 million (€5.0 million) was recognized in relation to the non-refundable up-front payment received upon execution of the Group’s patent license agreement with Takeda in December 2017 and $5.9 million (€5.0 million) was recognized in relation to further payments received in December 2018 for product Alofisel®. These amounts were recorded in revenue as there were no further performance obligations required in regards to these milestones.

No milestone revenue was recognized in relation to the patent license agreement with Takeda in the six months ended December 31, 2018.

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 model 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. In October 2018, the Group expanded its partnership with JCR in Japan for wound healing in patients with Epidermolysis Bullosa (“EB”). The Group will receive royalties on TEMCELL product sales for EB. The Group applies 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, 2018, the Group recognized $2.2 million in commercialization revenue relating to royalty income earned on sales of TEMCELL® Hs. Inj., a registered trademark of JCR (“TEMCELL”) in Japan by our licensee JCR, compared with $1.6 million for the six months ended December 31, 2017. These amounts were recorded in revenue as there are no further performance obligations required in regards to these items.

In the six months ended December 31, 2018 and 2017, the Group recognized $1.0 million in milestone revenue upon our licensee, JCR, reaching cumulative net sales milestones for sales of TEMCELL in Japan. These amounts were recorded in revenue as there are no further performance obligations required in regards to these items.

Financial Instruments

The Group adopted IFRS 9 Financial Instruments on July 1, 2018. IFRS 9 introduced revisions in the classification and measurement of financial instruments with a principle-based approach which is driven by cash flow characteristics and business model.

The Group has had following impacts on its financial assets and liabilities from the adoption of the new standard on July 1, 2018:

•

Accounting for non-trading equity investments – IFRS 9 requires investments in equity instruments to be recorded at fair value with changes recognized through profit or loss (FVTPL). There is an allowance for management to make an irrevocable election on initial recognition for fair value changes in non-trading equity investments to be recorded in other comprehensive income (FVOCI). On transition to IFRS 9, the Group has made an election to record its available-for-sale financial asset measured at FVOCI in an equity instrument at FVOCI. Therefore there has been no impact on the measurement of the available-for-sale financial asset on transition.

•

Accounting for financial liabilities – Under IFRS 9 there is an allowance for managing to make an irrevocable election on initial recognition for financial liabilities that are measured at amortized cost to be measured at FVTPL. The Group has not designated any of its financial liabilities carried at amortized cost as FVTPL using the fair value option upon adoption of IFRS 9 on July 1, 2018. Therefore, there has been no impact on the transition to IFRS 9 from July 1, 2018.

In the opinion of management, the interim financial data includes all adjustments, consisting only of normal recurring adjustments, necessary to a fair statement of the results for the interim periods. Other than the new and amended standards adopted by the Group above these interim financial statements follow the same accounting policies as compared to the June 30, 2018 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

Certain new accounting standards and interpretations have been published that are not mandatory for the six month period ended December 31, 2018. The Group has not elected to apply any pronouncements before their operative date in the reporting period beginning July 1, 2018.

Initial application of the standards is not expected to affect any of the amounts recognized or disclosures made in the current financial report and management do not consider these new standards to have a material impact on future transactions made in relation to the Group. The Group is in the process of assessing the impact of these new standards on its accounting policy.

The following standards applicable to the Group but are not yet adopted are summarized below:


Title of standard	IFRS 16 Leases
Key requirements	IFRS 16 eliminates the classification of leases as either operating leases or finance leases for a lessee; they are recognized on the balance sheet as they are treated in a similar way to finance leases applying IAS 17. Leases are ‘capitalized’ by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, a financial liability is required to be recognized to represent the obligation to make future lease payments. There is little change for the accounting for a lessor.
Impact	The Group is currently evaluating the effect that the updated IFRS 16 will have on the consolidated financial statements and related disclosures.
Effective Date	IFRS 16 must be applied for annual reporting periods beginning on or after January 1, 2019. The Group does not intend to adopt IFRS 16 before its mandatory date.

Significant changes in the current reporting period

6 Months Ended

Dec. 31, 2018

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, 2018:

•

On July 17, 2018, the Group announced that it had entered into a strategic alliance with Tasly for the development, manufacture and commercialization in China of the Group’s allogeneic MPC products, MPC-150-IM and MPC-25-IC, subject to governmental approvals from the PRC.

•

In September 2018, the Group announced that Tasly had received all necessary approvals for the transaction. On September 14, 2018, the Group recognized revenue of $10.0 million from the $20.0 million up-front payment received in October 2018 as this is the portion of revenue that control has been transferred to Tasly. The Group recognized the remaining $10.0 million from the $20.0 million up-front payment receivable from Tasly as deferred consideration on the consolidated balance sheet. The deferred consideration amount will be recognized in revenue when and if control transfers to Tasly based on the Group’s decision regarding the exercise of the Group’s rights in the terms and conditions of the agreement.

Loss before income tax

6 Months Ended

Dec. 31, 2018

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	2018			2017			2018			2017
Revenue
Commercialization Revenue			1,217			949			2,223			1,555
Milestone Revenue			500			12,334			11,000			12,834
Interest Revenue			153			114			284			182
Total Revenue			1,870			13,397			13,507			14,571

Clinical trial and research & development			(10,555	)		(9,752	)		(21,921	)		(19,457	)
Manufacturing production & development			(3,989	)		(340	)		(7,640	)		(762	)

Employee benefits
Salaries and employee benefits			(5,088	)		(4,961	)		(9,920	)		(9,537	)
Defined contribution superannuation expenses			—			(93	)		(184	)		(192	)
Equity settled share-based payment transactions⁽¹⁾			(1,208	)		(2,140	)		(2,026	)		(4,029	)
Total Employee benefits			(6,296	)		(7,194	)		(12,130	)		(13,758	)

Depreciation and amortization of non-current assets
Plant and equipment depreciation			(150	)		(237	)		(310	)		(504	)
Intellectual property amortization			(395	)		(364	)		(788	)		(728	)
Total Depreciation and amortization of non-current assets			(545	)		(601	)		(1,098	)		(1,232	)

Other Management & administration expenses
Overheads & administration			(2,249	)		(1,965	)		(6,253	)		(3,827	)
Consultancy			(797	)		(950	)		(1,646	)		(1,716	)
Legal, patent and other professional fees			(881	)		(845	)		(2,451	)		(1,383	)
Intellectual property expenses (excluding the amount amortized above)			(703	)		(1,019	)		(1,295	)		(1,788	)
Total Other Management & administration expenses			(4,630	)		(4,779	)		(11,645	)		(8,714	)

Fair value remeasurement of contingent consideration
Remeasurement of contingent consideration			(11	)		(793	)		(634	)		8,702
Total Fair value remeasurement of contingent consideration			(11	)		(793	)		(634	)		8,702

Other operating income and expenses
Remeasurement of borrowing arrangements			(752	)		—			(752	)		—
Research & development tax incentive⁽²⁾			—			317			—			910
Foreign exchange gains/(losses)			(23	)		106			(174	)		181
Foreign withholding tax paid			(52	)		—			(52	)		—
Total Other operating income and expenses			(827	)		423			(978	)		1,091

Finance costs
Interest expense			(2,486	)		—			(5,139	)		—
Total Finance costs			(2,486	)		—			(5,139	)		—

Total loss before income tax			(27,469	)		(9,639	)		(47,678	)		(19,559	)

(1)	Share-based payment transactions

For the three and six months ended December 31, 2018 and 2017, 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)	2018		2017		2018		2017
Research and development		621,949		1,232,501		1,149,804		2,342,706
Manufacturing and commercialization		90,632		161,871		155,239		389,574
Management and administration		1,115,799		745,961		1,340,895		1,296,914
		1,828,380		2,140,333		2,645,938		4,029,194

(2)	Research and development tax incentive

The Group’s research and development activities are not eligible from July 1, 2018 to June 30, 2019 for the refundable tax offset, under an Australian Government tax incentive as a result of the Group earning revenues in excess of A$20.0 million for the year ended June 30, 2019. At each period end management estimates the refundable tax offset available to the Group based on available information at the time. The Group uses the assistance of independent tax specialists to review, on an annual basis, the quantum of our previous research and development tax claim and our on-going eligibility to claim this tax incentive in Australia. For the six months ended December 31, 2018 and 2017, the Group has recognized income of $Nil and $0.9 million, respectively.

Income tax benefit/(expense)

6 Months Ended

Dec. 31, 2018

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)	2018			2017			2018			2017
(a)	Income tax expense
	Current tax
	Current tax		—			614			—			614
	Total current tax expense		—			614			—			614

	Deferred tax
	(Increase)/decrease in deferred tax assets		(2,841	)		26,687			(3,526	)		23,825
	(Decrease)/increase in deferred tax liabilities		(24	)		(50,643	)		(49	)		(50,679	)
	Total deferred tax (benefit)		(2,865	)		(23,956	)		(3,575	)		(26,854	)
	Income tax (benefit)		(2,865	)		(23,342	)		(3,575	)		(26,240	)

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. On December 22, 2017, the United States signed into law the Tax Cuts and Jobs Act, which changed many aspects of U.S. corporate income taxation, including a reduction in the corporate income tax rate from 35% to 21%. In the six months ended December 31, 2017, deferred tax assets in the United States were recognized at 35% compared with 21% in the six months ended December 31, 2018.

		As of		As of
	(in U.S. dollars, in thousands)	December 31, 2018		June 30, 2018
(b)	Deferred tax assets not brought to account
	Unused tax losses
	Potential tax benefit at local tax rates		48,036		41,501
	Other temporary differences
	Potential tax benefit at local tax rates		3,263		3,704
	Other tax credits
	Potential tax benefit at local tax rates		3,220		3,220
			54,519		48,425

As of December 31, 2018 and June 30, 2018, the Group has deferred tax assets not brought to account of $54.5 million and $48.4 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 liabilities

6 Months Ended

Dec. 31, 2018

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, 2018
Cash & cash equivalents	5(a)		—		—		77,022		77,022
Trade & other receivables	5(b)		—		—		3,934		3,934
Financial assets at fair value through other comprehensive income	5(e)		2,516		—		—		2,516
Other non-current assets			—		—		3,328		3,328
			2,516		—		84,284		86,800
As of June 30, 2018
Cash & cash equivalents	5(a)		—		—		37,763		37,763
Trade & other receivables	5(b)		—		—		50,366		50,366
Financial assets at fair value through other comprehensive income	5(e)		2,321		—		—		2,321
Other non-current assets			—		—		3,361		3,361
			2,321		—		91,490		93,811

(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, 2018
Trade and other payables	5(c)		—		—		25,120		25,120
Borrowings	5(d)		—		—		63,482		63,482
Contingent considerations	5(e)(iii)		—		42,234		—		42,234
			—		42,234		88,602		130,836
As of June 30, 2018
Trade and other payables	5(c)		—		—		18,921		18,921
Borrowings	5(d)		—		—		59,397		59,397
Contingent considerations	5(e)(iii)		—		42,070		—		42,070
			—		42,070		78,318		120,388

(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.

a.	Cash and cash equivalents


(in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018

Cash at bank		76,599		37,221
Deposits at call⁽¹⁾		423		542
		77,022		37,763

(1)	As of December 31, 2018 and June 30, 2018, interest-bearing deposits at call include amounts of $0.4 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


(in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018
Trade debtors		1,216		6,630
Funds receivable from debt financing and unissued capital⁽¹⁾		—		38,950
Income tax and tax incentives recoverable		1,592		3,305
Other receivables		93		615
Foreign withholding tax recoverable		471		471
Security deposit		251		250
Sundry debtors		51		81
Other recoverable taxes (Goods and services tax and value-added tax)		258		53
Interest receivables		2		11
Trade and other receivables		3,934		50,366

(1)

On July 2, 2018, the Group announced that the Group had entered into a financing agreement with NovaQuest Capital Management, L.L.C. (“NovaQuest”) on June 29, 2018 to develop and commercialize its allogeneic product candidate MSC-100-IV for pediatric patients with acute graft versus host disease ("aGVHD”). The contractual terms of the agreement pertaining to the receipt of funds were binding and therefore the Group recognized a receivable of $39.0 million at June 30, 2018. On July 10, 2018 the net proceeds from the financing facility of $39.0 million were received and recognized in cash and cash equivalents.

(ii) Prepayments

(in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018
Clinical trial research and development expenditure		13,453		12,042
Prepaid insurance and subscriptions		2,117		141
Other		1,275		759
Prepayments		16,845		12,942

(iii) Classification as trade and other receivables

Interest receivables are amounts due at maturity of term deposits. All trade and other receivable balances are within their due dates and none are considered to be impaired as of December 31, 2018 and June 30, 2018.

(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.

c.	Trade and other payables


(in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018
Trade payables and other payables		25,120		18,921
Trade and other payables		25,120		18,921

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

(in U.S. dollars, in thousands)	As of December 31, 2018			As of June 30, 2018
Current
Secured liabilities:
Borrowing arrangements		3,095			—
		3,095			—

Non-current
Secured liabilities:
Borrowing arrangements		61,905			65,000
Less: transaction costs		(6,328	)		(6,328	)
Amortization of carrying amount, net of payments made		4,810			725
		60,387			59,397

(i) Borrowing arrangements

Hercules Capital, Inc.

On March 6, 2018, the Group drew the first tranche of $35.0 million of the principal amount from the $75.0 million 9.45% floating rate loan with Hercules. An additional tranche of $15.0 million was drawn by the Group on January 14, 2019. An additional $25.0 million may be drawn by the Group as certain milestones are met. The loan matures in March 2022 with principal repayments commencing in October 2019, as a result we have recognized $3.1 million of the borrowings as a current liability. If certain milestones are met before September 30, 2019 the requirement to commence principal repayments deferred potentially until October 2020. Interest on the loan is payable monthly in arrears on the 1^st day of the month. At closing date, the interest rate was 9.45%. On December 20, 2018, in line with the increases in the U.S. prime rate, the interest rate on the loan increased to 10.45%.

The carrying amount of the loan is secured by a first charge over the assets of the Group, excluding $0.7 million of bank guarantees and $1.2 million of letters of credit included in other non-current assets (refer to Note 5(d) in “Item 18 Financial Statements” included in our Form 20-F), $0.4 million of interest-bearing deposits at call included in cash and cash equivalents (refer to Note 5(a)) and $0.3 million of cash held as security included in trade and other receivables (refer to Note 5(b)). These items have been used to secure liabilities other than the non-current loan.

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 our allogeneic product candidate MSC-100-IV in pediatric patients with steroid refractory aGVHD, in the United States and other geographies excluding Asia (“pediatric aGVHD”). We 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 pediatric aGVHD are significantly higher than current forecasts.

If there are no net sales of pediatric aGVHD, the loan is only repayable on maturity in 2026. If in any annual period 25% of net sales of pediatric 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 pediatric aGVHD is less than the payment cap, then the payment is limited to 25% of net sales of pediatric 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 adjustment is recalculated by computing the present value of the revised estimated future cash flows at the financial instrument’s original effective interest rate. In the six months ended December 31, 2018 a $0.7 million loss has been recognized by the Group in the Income Statement as remeasurement of borrowing arrangements within other operating income and expenses.

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

The Group has complied with the financial covenants of its borrowing facilities during the six months ended December 31, 2018 and during the year ended June 30, 2018.

(iii) Net debt reconciliation

(in U.S. dollars, in thousands)	Current borrowings		Non-current borrowings			Total
Cashflows from financing activities - as of June 30, 2018		3,095		28,217			31,312
Changes from financing cash flows
Proceeds from debt		—		28,950			28,950
Payment of transaction costs		—		(1,546	)		(1,546	)
Repayment of loans		—		—			—
Movement in short-term borrowings		—		—			—
Total changes in liabilities arising on financing cash flows		—		27,404			27,404
Other changes
Accrued transaction costs		—		(44	)		(44	)
Amortization of carrying amount, net of payments made		—		4,810			4,810
Carrying value - as of December 31, 2018		3,095		60,387			63,482

(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.

e.	Recognized fair value measurements

(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, 2018 and June 30, 2018 on a recurring basis, categorized by level according to the significance of the inputs used in making the measurements:

As of June 30, 2018
(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			—		—		2,321		2,321
Total Financial Assets			—		—		2,321		2,321

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)		—		—		42,070		42,070
Total Financial Liabilities			—		—		42,070		42,070

As of December 31, 2018
(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			—		—		2,516		2,516
Total Financial Assets			—		—		2,516		2,516

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)		—		—		42,234		42,234
Total Financial Liabilities			—		—		42,234		42,234

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 financial 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, 2018 and the year ended June 30, 2018:

(in U.S. dollars, in thousands)	Contingent consideration provision
Opening balance - July 1, 2017		63,595
Amount used during the year		(10,984	)
Charged/(credited) to consolidated income statement:
Remeasurement⁽¹⁾		(10,541	)
Closing balance - June 30, 2018		42,070

Opening balance - July 1, 2018		42,070
Amount used during the period		(358	)
Charged/(credited) to consolidated income statement:
Remeasurement⁽²⁾		522
Closing balance - December 31, 2018		42,234

(1)

In the year ended June 30, 2018 a gain of $10.5 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, product pricing, market population, market penetration 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, 2018 a loss of $0.5 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This loss is a net result of changes to the key assumptions of the contingent consideration valuation such as development timelines, market penetration and the increase in valuation as the time period shortens between the valuation date and the potential settlement dates of contingent consideration.

(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

2018

technique

inputs⁽¹⁾

2018

fair value

Contingent consideration provision

42,234

42,070

Discounted cash flows

Risk adjusted

discount rate

11%-13%

(12.5%)

11%-13%

(12.5%)

Six months ended

December 31, 2018: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%.

Year ended June 30, 2018: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%.

Expected unit

revenues

n/a

Six months ended

December 31, 2018: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%.

Year ended June 30, 2018: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%.

Expected sales volumes

n/a

Six months ended

December 31, 2018: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 4%.

Year ended June 30, 2018: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 4%.

(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, 2018 and the year ended June 30, 2018, 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. The remeasurement charged to the consolidated income statement was a net result of changes to key assumptions such as developmental timelines, product pricing, market population, market penetration, probability of success and the increase in valuation as the time period shortens between the valuation date and the potential settlement dates of contingent consideration.


The fair value of contingent consideration (in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets		23,942		23,674
Fair value of royalty payments from commercialization of the intellectual property acquired		18,292		18,396
		42,234		42,070

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.

Non-financial Assets and Liabilities

6 Months Ended

Dec. 31, 2018

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 licenses to patents			In-process research and development acquired			Current marketed products			Total
Year Ended June 30, 2018
Opening net book amount		134,453		1,898			427,779			22,220			586,350
Exchange differences		—		(3	)		—			—			(3	)
Amortization charge		—		(125	)		—			(1,616	)		(1,741	)
Closing net book amount		134,453		1,770			427,779			20,604			584,606

As of June 30, 2018
Cost		134,453		2,749			489,698			23,999			650,899
Accumulated amortization		—		(979	)		—			(3,395	)		(4,374	)
Accumulated impairment		—		—			(61,919	)		—			(61,919	)
Net book amount		134,453		1,770			427,779			20,604			584,606

Six Months Ended December 31, 2018
Opening net book amount		134,453		1,770			427,779			20,604			584,606
Exchange differences		—		(4	)		(1	)		2			(3	)
Amortization charge		—		(61	)		—			(727	)		(788	)
Closing net book amount		134,453		1,705			427,778			19,879			583,815

As of December 31, 2018
Cost		134,453		2,724			489,697			24,000			650,874
Accumulated amortization		—		(1,019	)		—			(4,121	)		(5,140	)
Accumulated impairment		—		—			(61,919	)		—			(61,919	)
Net book amount		134,453		1,705			427,778			19,879			583,815

c.	Deferred tax balances

(i) Deferred tax balances

(in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018
Deferred tax assets
The balance comprises temporary differences attributable to:
Tax losses		56,044		55,904
Other temporary differences		4,056		669
Total deferred tax assets		60,100		56,573

Deferred tax liabilities
The balance comprises temporary differences attributable to:
Intangible assets		76,604		76,652
Total deferred tax liabilities		76,604		76,652
Net deferred tax liabilities		16,504		20,079

Deferred tax assets expected to be settled within 12 months		—		—
Deferred tax assets expected to be settled after 12 months		60,100		56,573

Deferred tax liabilities expected to be settled within 12 months		99		147
Deferred tax liabilities expected to be settled after 12 months		76,505		76,505

(ii) Movements

(in U.S. dollars, in thousands)	Tax losses⁽¹⁾ (DTA)			Other temporary differences⁽¹⁾ (DTA)			Intangible assets (DTL)			Total (DTL)
As of July 1, 2017		(74,660	)		(3,566	)		127,519			49,293
Reclassifications		1,473			—			—			1,473
Charged/(credited) to:
- profit or loss		17,283			2,897			(50,867	)		(30,687	)
As of June 30, 2018		(55,904	)		(669	)		76,652			20,079
Charged/(credited) to:
- profit or loss		(140	)		(3,387	)		(48	)		(3,575	)
As of December 31, 2018		(56,044	)		(4,056	)		76,604			16,504

(1)

Deferred tax assets are netted against deferred tax liabilities

a.	Deferred consideration

(in U.S. dollars, in thousands)	As of December 31, 2018			As of June 30, 2018
Opening balance		—			—
Up-front milestone receivable recognized during the period		20,000			—
Amount recognized as revenue in the period		(10,000	)		—
Balance as of the end of the period		10,000			—

Deferred consideration represents the portion of the up-front technology access fee receivable from Tasly that has not been recognized as revenue. In accordance with the Group’s accounting policy, revenue related to the licensing of intellectual property is only recognized to the extent that control has been transferred to the customer. The deferred consideration amount will be recognized in revenue when and if control transfers to Tasly based on the Group’s decision regarding the exercise of the Group’s rights in the terms and conditions of the agreement.

Cash flow information

6 Months Ended

Dec. 31, 2018

Statement Of Cash Flows [Abstract]

Cash flow information

7. Cash flow information

(in U.S. dollars, in thousands)
(a) Reconciliation of cash and cash equivalents	As of December 31, 2018		As of June 30, 2018
Cash at bank		76,599		37,221
Deposits at call		423		542
		77,022		37,763

(in U.S. dollars, in thousands)
(b) Reconciliation of net cash flows used in operations with (loss)/profit after income tax	Six months ended December 31, 2018			Six months ended December 31, 2017
(Loss)/profit for the period		(44,103	)		6,681
Add/(deduct) net loss for non-cash items as follows:
Depreciation and amortization		1,098			1,232
Foreign exchange (gains)/losses		(179	)		(192	)
Finance costs		3,333			—
Remeasurement of borrowing arrangements		752			—
Remeasurement of contingent consideration		634			(8,702	)
Equity settled share-based payment		2,026			4,029
Deferred tax benefit		(3,575	)		(26,262	)
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables		5,185			(7,496	)
(Increase)/decrease in prepayments		(3,553	)		1,519
Decrease/(increase) in tax assets		1,654			(910	)
Increase/(decrease) in trade creditors and accruals		8,474			(3,899	)
Increase/(decrease) in provisions		739			(1,221	)
Increase/(decrease) in deferred consideration		10,000			—
Net cash outflows used in operations		(17,515	)		(35,221	)

Issued capital

6 Months Ended

Dec. 31, 2018

Disclosure Of Classes Of Share Capital [Abstract]

Issued capital

8. Issued capital

	As of December 31,				As of December 31,
	2018		2017		2018			2017
	Shares No.				(U.S. dollars, in thousands)
Opening balance		482,639,654		428,221,398		889,481			830,425
Issues of ordinary shares during the period
Exercise of share options⁽¹⁾		313,108		255,912		258			83
Share based compensation for services rendered		—		158,901		—			240
Payment for contingent consideration		—		6,029,545		—			10,000
Entitlement offer to existing eligible shareholders		—		36,191,982		—			40,449
Placement of shares under a share placement agreement⁽²⁾		14,464,259		—		20,000			—
Transaction costs arising on share issue				—		(817	)		(2,208	)
		14,777,367		42,636,340		19,441			48,564
Share options reserve transferred to equity on exercise of options		—		—		313			—
Ending balance		497,417,021		470,857,738		909,235			878,989

(1)	Options are issued to employees, directors and consultants in accordance with the Mesoblast Employee Share Option Plan (“ESOP”). The shares issued and share capital received on the exercise of options are recorded above.

(2)	$20.0 million in an equity purchase of Mesoblast Limited at A$1.86 per share, representing a 20% premium to a blended volume weighted average price calculated over three months, one month and one day.

Financial Risk Management

6 Months Ended

Dec. 31, 2018

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 in the Group’s Swiss and Singapore based entities, whose functional currencies are the US$. The Group also has foreign currency amounts owing in various other non-US$ currencies in AU$ and US$ functional currency entities in the Group relating to clinical, regulatory and overhead activities. These foreign currency balances give rise to a currency risk, which is the risk of the exchange rate moving, in either direction, and the impact it may have on the Group’s financial performance.

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, 2018.

The exposure of the Group’s borrowing to interest rate changes are as follows:

	As of					As of
	December 31, 2018					June 30, 2018
(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		3,095		5	%		—		0	%
Non-current borrowings
Variable rate borrowings - Hercules		29,713		47	%		31,966		54	%
		32,808		52	%		31,966		54	%

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, 2018 and June 30, 2018. The effect on profit is shown if interest rates change by 5%, in either direction, is as follows:

	As of									As of
	December 31, 2018									June 30, 2018
(in U.S. dollars, in thousands, except percent data)	Low			High						Low			High
Borrowings - USD		10.45	%		10.45	%	USD 32,808⁽¹⁾				9.95	%		9.95	%	USD 31,966⁽¹⁾
Rate increase by 5%		10.97	%		10.97	%		USD 171			10.45	%		10.45	%		USD 159
Rate decrease by 5%		9.93	%		9.93	%		(USD 171	)		9.45	%		9.45	%		(USD 159	)

(1)

The effect on profit/loss of interest rate changes is based on the loan principal amount of $35.0 million with principal payments commencing in October 2019.

The Group is also exposed to interest rate movements which impacts interest income earned on its deposits. 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, 2018 and June 30, 2018. The effect on profit is shown if interest rates change by 10%, in either direction, is as follows:

	As of								As of
	December 31, 2018								June 30, 2018
(in U.S. dollars, in thousands, except percent data)	Low			High					Low			High
Funds invested - USD		0.80	%		0.80	%	USD 0			0.80	%		0.80	%	USD 99
Rate increase by 10%		0.88	%		0.88	%	USD 0			0.88	%		0.88	%	USD 0
Rate decrease by 10%		0.72	%		0.72	%	USD 0			0.72	%		0.72	%	USD 0


AUD	Low			High					Low			High
Funds invested - AUD		2.75	%		2.75	%	AUD 600			2.72	%		2.72	%	AUD 600
Rate increase by 10%		3.03	%		3.03	%	AUD 2			2.99	%		2.99	%	AUD 2
Rate decrease by 10%		2.48	%		2.48	%	(AUD 2	)		2.45	%		2.45	%	(AUD 2	)

(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 product candidate MSC-100-IV for the treatment of aGVHD in pediatric patients in the United States and other territories excluding Asia. As net sales of MSC-100-IV for the treatment of 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 other operating income and expenses 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, 2018					June 30, 2018
(in U.S. dollars, in thousands, except percent data)	Total		% of total loans			Total		% of total loans
Financial liabilities
Non-current borrowings
Borrowings - NovaQuest		30,674		48	%		27,431		46	%
		30,674		48	%		27,431		46	%

As at December 31, 2018, all other factors held constant, a 20% increase in the forecast net sales of MSC-100-IV for the treatment of aGVHD in pediatric patients in the United States and other territories excluding Asia would increase non-current borrowing and decrease profit by $3.2 million, whereas a 20% decrease in the net sales of MSC-100-IV for the treatment of aGVHD in pediatric patients in the United States and other territories excluding Asia would decrease non-current borrowings and increase profit by $1.4 million.

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 and borrowings, held by the Group as of December 31, 2018 and June 30, 2018 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.

The maturity profile of the anticipated future contractual cash flows including interest in relation to the Group’s borrowings, 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⁾

(7,171

)

(19,971

)

(54,931

)

(42,578

)

(124,651

)

(63,482

)

(7,171

)

(19,971

)

(54,931

)

(42,578

)

(124,651

)

(63,482

)

(1)

Contractual cash flows include payments of principal, interest and other charges. Interest is calculated based on debt held at December 31, 2018 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 pediatric aGVHD.

(Losses)/earnings per share

6 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

(Losses)/earnings per share

10. (Losses)/earnings per share

	Three Months Ended					Six Months Ended
	December 31, 2018 Cents			December 31, 2017 Cents		December 31, 2018 Cents			December 31, 2017 Cents
(Losses)/earnings per share
(in cents)
(a) Basic (losses)/earnings per share
From continuing operations attributable to the ordinary equity holders of the company		(5.00	)		2.91		(9.08	)		1.46
Total basic (losses)/earnings per share attributable to the ordinary equity holders of the company		(5.00	)		2.91		(9.08	)		1.46

(b) Diluted (losses)/earnings per share
From continuing operations attributable to the ordinary equity holders of the company		(5.00	)		2.91		(9.08	)		1.46
Total basic (losses)/earnings per share attributable to the ordinary equity holders of the company		(5.00	)		2.91		(9.08	)		1.46

(c) Reconciliation of (losses)/earnings used in calculating (losses)/earnings per share
(in U.S. dollars, in thousands)
Basic (losses)/earnings per share
(Losses)/earnings attributable to the ordinary equity holders of the company used in calculating basic (losses)/earnings per share:
From continuing operations		(24,604	)		13,703		(44,103	)		6,681

Diluted (losses)/earnings per share
(Losses)/earnings from continuing operations attributable to the ordinary equity holders of the company:
Used in calculating basic (losses)/earnings per share		(24,604	)		13,703		(44,103	)		6,681
(Losses)/earnings attributable to the ordinary equity holders of the company used in calculating diluted losses per share		(24,604	)		13,703		(44,103	)		6,681


	Three Months Ended					Six Months Ended
	December 31, 2018 (in shares)			December 31, 2017 (in shares)		December 31, 2018 (in shares)			December 31, 2017 (in shares)
Weighted average number of ordinary shares used as the denominator in calculating basic (losses)/earnings per share		491,760,046			471,205,385		485,602,719			457,658,570
Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted (losses)/earnings per share		491,760,046			471,447,464		485,602,719			457,973,954

Options granted to employees and shares that may be paid as contingent consideration are considered to be potential ordinary shares. These have been excluded from the basic loss/earnings per share calculation in the three and six months ended December 31, 2018 and 2017. They have also been excluded from the calculation of diluted losses per share because they are anti-dilutive for the three and six months ended December 31, 2018 and have been considered and only included in the diluted earnings per share calculation to the extent they are dilutive in the three and six months ended December 31, 2017.

The calculations for the six months ended December 31, 2017 have been adjusted to reflect the bonus element in the entitlement offer to existing eligible shareholders which occurred during September 2017.

Events occurring after the reporting period

6 Months Ended

Dec. 31, 2018

Disclosure Of Nonadjusting Events After Reporting Period [Abstract]

Events occurring after the reporting period

11. Events occurring after the reporting period

Other than the $15.0 million tranche drawn on existing facilities as explained in Note 5(d)(i) above, on January 7, 2019, the Group announced that Mesoblast issued 1,209,187 ordinary shares in Mesoblast to Maxim Group as consideration for advisory services in connection with the completion of the strategic partnership with Tasly. The 1,209,187 ordinary shares issued (fully paid) were issued for consideration of $1.2 million.

There were no other events that have occurred after December 31, 2018 and prior to the signing of this financial report that would likely have a material impact on the financial results presented.

Segment information

6 Months Ended

Dec. 31, 2018

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.

Basis of preparation (Policies)

6 Months Ended

Dec. 31, 2018

Basis Of Preparation [Abstract]

Basis of Preparation

1. Basis of preparation

Preparation of interim financial statements for users in multiple jurisdictions

The Company has prepared the interim financial statements to conform to the requirements and needs of users of the financial

statements located in both Australia and the U.S.

(i) Going concern

(ii) New and amended standards adopted by the Group

Revenue recognition

There was no cumulative impact of the adoption of IFRS 15 Revenue from Contracts with Customers on July 1, 2018.

Revenues from contracts with customers comprise commercialization and milestone revenue. The Group also has revenue from research and development tax incentives and interest revenue.

Commercialization and milestone revenue

Milestone revenue

The Group applies the five-step method under the standard to measure and recognize milestone revenue.

Licenses of intellectual property

Sales-based or usage-based royalties

Tasly arrangement

No milestone revenue was recognized in relation to this strategic alliance with Tasly in the six months ended December 31, 2017.

TiGenix arrangement

No milestone revenue was recognized in relation to the patent license agreement with Takeda in the six months ended December 31, 2018.

JCR arrangement

Financial Instruments

The Group has had following impacts on its financial assets and liabilities from the adoption of the new standard on July 1, 2018:

•

(iii) New accounting standards and interpretations not yet adopted by the Group

The following standards applicable to the Group but are not yet adopted are summarized below:


Title of standard	IFRS 16 Leases
Key requirements	IFRS 16 eliminates the classification of leases as either operating leases or finance leases for a lessee; they are recognized on the balance sheet as they are treated in a similar way to finance leases applying IAS 17. Leases are ‘capitalized’ by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, a financial liability is required to be recognized to represent the obligation to make future lease payments. There is little change for the accounting for a lessor.
Impact	The Group is currently evaluating the effect that the updated IFRS 16 will have on the consolidated financial statements and related disclosures.
Effective Date	IFRS 16 must be applied for annual reporting periods beginning on or after January 1, 2019. The Group does not intend to adopt IFRS 16 before its mandatory date.

Loss Before Income Tax (Tables)

6 Months Ended

Dec. 31, 2018

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	2018			2017			2018			2017
Revenue
Commercialization Revenue			1,217			949			2,223			1,555
Milestone Revenue			500			12,334			11,000			12,834
Interest Revenue			153			114			284			182
Total Revenue			1,870			13,397			13,507			14,571

Clinical trial and research & development			(10,555	)		(9,752	)		(21,921	)		(19,457	)
Manufacturing production & development			(3,989	)		(340	)		(7,640	)		(762	)

Employee benefits
Salaries and employee benefits			(5,088	)		(4,961	)		(9,920	)		(9,537	)
Defined contribution superannuation expenses			—			(93	)		(184	)		(192	)
Equity settled share-based payment transactions⁽¹⁾			(1,208	)		(2,140	)		(2,026	)		(4,029	)
Total Employee benefits			(6,296	)		(7,194	)		(12,130	)		(13,758	)

Depreciation and amortization of non-current assets
Plant and equipment depreciation			(150	)		(237	)		(310	)		(504	)
Intellectual property amortization			(395	)		(364	)		(788	)		(728	)
Total Depreciation and amortization of non-current assets			(545	)		(601	)		(1,098	)		(1,232	)

Other Management & administration expenses
Overheads & administration			(2,249	)		(1,965	)		(6,253	)		(3,827	)
Consultancy			(797	)		(950	)		(1,646	)		(1,716	)
Legal, patent and other professional fees			(881	)		(845	)		(2,451	)		(1,383	)
Intellectual property expenses (excluding the amount amortized above)			(703	)		(1,019	)		(1,295	)		(1,788	)
Total Other Management & administration expenses			(4,630	)		(4,779	)		(11,645	)		(8,714	)

Fair value remeasurement of contingent consideration
Remeasurement of contingent consideration			(11	)		(793	)		(634	)		8,702
Total Fair value remeasurement of contingent consideration			(11	)		(793	)		(634	)		8,702

Other operating income and expenses
Remeasurement of borrowing arrangements			(752	)		—			(752	)		—
Research & development tax incentive⁽²⁾			—			317			—			910
Foreign exchange gains/(losses)			(23	)		106			(174	)		181
Foreign withholding tax paid			(52	)		—			(52	)		—
Total Other operating income and expenses			(827	)		423			(978	)		1,091

Finance costs
Interest expense			(2,486	)		—			(5,139	)		—
Total Finance costs			(2,486	)		—			(5,139	)		—

Total loss before income tax			(27,469	)		(9,639	)		(47,678	)		(19,559	)

(1)	Share-based payment transactions

For the three and six months ended December 31, 2018 and 2017, 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)	2018		2017		2018		2017
Research and development		621,949		1,232,501		1,149,804		2,342,706
Manufacturing and commercialization		90,632		161,871		155,239		389,574
Management and administration		1,115,799		745,961		1,340,895		1,296,914
		1,828,380		2,140,333		2,645,938		4,029,194

(2)	Research and development tax incentive

Income Tax Benefit/(Expense) (Tables)

6 Months Ended

Dec. 31, 2018

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)	2018			2017			2018			2017
(a)	Income tax expense
	Current tax
	Current tax		—			614			—			614
	Total current tax expense		—			614			—			614

	Deferred tax
	(Increase)/decrease in deferred tax assets		(2,841	)		26,687			(3,526	)		23,825
	(Decrease)/increase in deferred tax liabilities		(24	)		(50,643	)		(49	)		(50,679	)
	Total deferred tax (benefit)		(2,865	)		(23,956	)		(3,575	)		(26,854	)
	Income tax (benefit)		(2,865	)		(23,342	)		(3,575	)		(26,240	)

Summary of Deferred Tax Assets Not Brought to Account

		As of		As of
	(in U.S. dollars, in thousands)	December 31, 2018		June 30, 2018
(b)	Deferred tax assets not brought to account
	Unused tax losses
	Potential tax benefit at local tax rates		48,036		41,501
	Other temporary differences
	Potential tax benefit at local tax rates		3,263		3,704
	Other tax credits
	Potential tax benefit at local tax rates		3,220		3,220
			54,519		48,425

Financial assets and liabilities (Tables)

6 Months Ended

Dec. 31, 2018

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, 2018
Cash & cash equivalents	5(a)		—		—		77,022		77,022
Trade & other receivables	5(b)		—		—		3,934		3,934
Financial assets at fair value through other comprehensive income	5(e)		2,516		—		—		2,516
Other non-current assets			—		—		3,328		3,328
			2,516		—		84,284		86,800
As of June 30, 2018
Cash & cash equivalents	5(a)		—		—		37,763		37,763
Trade & other receivables	5(b)		—		—		50,366		50,366
Financial assets at fair value through other comprehensive income	5(e)		2,321		—		—		2,321
Other non-current assets			—		—		3,361		3,361
			2,321		—		91,490		93,811

(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, 2018
Trade and other payables	5(c)		—		—		25,120		25,120
Borrowings	5(d)		—		—		63,482		63,482
Contingent considerations	5(e)(iii)		—		42,234		—		42,234
			—		42,234		88,602		130,836
As of June 30, 2018
Trade and other payables	5(c)		—		—		18,921		18,921
Borrowings	5(d)		—		—		59,397		59,397
Contingent considerations	5(e)(iii)		—		42,070		—		42,070
			—		42,070		78,318		120,388

(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


(in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018

Cash at bank		76,599		37,221
Deposits at call⁽¹⁾		423		542
		77,022		37,763

(1)	As of December 31, 2018 and June 30, 2018, interest-bearing deposits at call include amounts of $0.4 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


(in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018
Trade debtors		1,216		6,630
Funds receivable from debt financing and unissued capital⁽¹⁾		—		38,950
Income tax and tax incentives recoverable		1,592		3,305
Other receivables		93		615
Foreign withholding tax recoverable		471		471
Security deposit		251		250
Sundry debtors		51		81
Other recoverable taxes (Goods and services tax and value-added tax)		258		53
Interest receivables		2		11
Trade and other receivables		3,934		50,366

(1)

(ii) Prepayments

(in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018
Clinical trial research and development expenditure		13,453		12,042
Prepaid insurance and subscriptions		2,117		141
Other		1,275		759
Prepayments		16,845		12,942

Summary of Trade and Other Payables

c.	Trade and other payables


(in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018
Trade payables and other payables		25,120		18,921
Trade and other payables		25,120		18,921

Summary of Borrowings

d.	Borrowings

(in U.S. dollars, in thousands)	As of December 31, 2018			As of June 30, 2018
Current
Secured liabilities:
Borrowing arrangements		3,095			—
		3,095			—

Non-current
Secured liabilities:
Borrowing arrangements		61,905			65,000
Less: transaction costs		(6,328	)		(6,328	)
Amortization of carrying amount, net of payments made		4,810			725
		60,387			59,397

Summary of Net Debt Reconciliation

(iii) Net debt reconciliation

(in U.S. dollars, in thousands)	Current borrowings		Non-current borrowings			Total
Cashflows from financing activities - as of June 30, 2018		3,095		28,217			31,312
Changes from financing cash flows
Proceeds from debt		—		28,950			28,950
Payment of transaction costs		—		(1,546	)		(1,546	)
Repayment of loans		—		—			—
Movement in short-term borrowings		—		—			—
Total changes in liabilities arising on financing cash flows		—		27,404			27,404
Other changes
Accrued transaction costs		—		(44	)		(44	)
Amortization of carrying amount, net of payments made		—		4,810			4,810
Carrying value - as of December 31, 2018		3,095		60,387			63,482

Summary of Financial Assets and Liabilities Measured and Recognized at Fair Value

As of June 30, 2018
(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			—		—		2,321		2,321
Total Financial Assets			—		—		2,321		2,321

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)		—		—		42,070		42,070
Total Financial Liabilities			—		—		42,070		42,070

As of December 31, 2018
(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			—		—		2,516		2,516
Total Financial Assets			—		—		2,516		2,516

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)		—		—		42,234		42,234
Total Financial Liabilities			—		—		42,234		42,234

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, 2018 and the year ended June 30, 2018:

(in U.S. dollars, in thousands)	Contingent consideration provision
Opening balance - July 1, 2017		63,595
Amount used during the year		(10,984	)
Charged/(credited) to consolidated income statement:
Remeasurement⁽¹⁾		(10,541	)
Closing balance - June 30, 2018		42,070

Opening balance - July 1, 2018		42,070
Amount used during the period		(358	)
Charged/(credited) to consolidated income statement:
Remeasurement⁽²⁾		522
Closing balance - December 31, 2018		42,234

(1)

(2)

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

2018

technique

inputs⁽¹⁾

2018

fair value

Contingent consideration provision

42,234

42,070

Discounted cash flows

Risk adjusted

discount rate

11%-13%

(12.5%)

11%-13%

(12.5%)

Six months ended

December 31, 2018: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%.

Year ended June 30, 2018: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%.

Expected unit

revenues

n/a

Six months ended

December 31, 2018: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%.

Year ended June 30, 2018: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%.

Expected sales volumes

n/a

Six months ended

December 31, 2018: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 4%.

Year ended June 30, 2018: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 4%.

(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


The fair value of contingent consideration (in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets		23,942		23,674
Fair value of royalty payments from commercialization of the intellectual property acquired		18,292		18,396
		42,234		42,070

Non-financial Assets and Liabilities (Tables)

6 Months Ended

Dec. 31, 2018

Disclosure Of Non Financial Assets And Liabilities [Abstract]

Summary of Intangible Assets

b.	Intangible assets

(in U.S. dollars, in thousands)	Goodwill		Acquired licenses to patents			In-process research and development acquired			Current marketed products			Total
Year Ended June 30, 2018
Opening net book amount		134,453		1,898			427,779			22,220			586,350
Exchange differences		—		(3	)		—			—			(3	)
Amortization charge		—		(125	)		—			(1,616	)		(1,741	)
Closing net book amount		134,453		1,770			427,779			20,604			584,606

As of June 30, 2018
Cost		134,453		2,749			489,698			23,999			650,899
Accumulated amortization		—		(979	)		—			(3,395	)		(4,374	)
Accumulated impairment		—		—			(61,919	)		—			(61,919	)
Net book amount		134,453		1,770			427,779			20,604			584,606

Six Months Ended December 31, 2018
Opening net book amount		134,453		1,770			427,779			20,604			584,606
Exchange differences		—		(4	)		(1	)		2			(3	)
Amortization charge		—		(61	)		—			(727	)		(788	)
Closing net book amount		134,453		1,705			427,778			19,879			583,815

As of December 31, 2018
Cost		134,453		2,724			489,697			24,000			650,874
Accumulated amortization		—		(1,019	)		—			(4,121	)		(5,140	)
Accumulated impairment		—		—			(61,919	)		—			(61,919	)
Net book amount		134,453		1,705			427,778			19,879			583,815

Summary of Deferred Tax Balances

(i) Deferred tax balances

(in U.S. dollars, in thousands)	As of December 31, 2018		As of June 30, 2018
Deferred tax assets
The balance comprises temporary differences attributable to:
Tax losses		56,044		55,904
Other temporary differences		4,056		669
Total deferred tax assets		60,100		56,573

Deferred tax liabilities
The balance comprises temporary differences attributable to:
Intangible assets		76,604		76,652
Total deferred tax liabilities		76,604		76,652
Net deferred tax liabilities		16,504		20,079

Deferred tax assets expected to be settled within 12 months		—		—
Deferred tax assets expected to be settled after 12 months		60,100		56,573

Deferred tax liabilities expected to be settled within 12 months		99		147
Deferred tax liabilities expected to be settled after 12 months		76,505		76,505

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 July 1, 2017		(74,660	)		(3,566	)		127,519			49,293
Reclassifications		1,473			—			—			1,473
Charged/(credited) to:
- profit or loss		17,283			2,897			(50,867	)		(30,687	)
As of June 30, 2018		(55,904	)		(669	)		76,652			20,079
Charged/(credited) to:
- profit or loss		(140	)		(3,387	)		(48	)		(3,575	)
As of December 31, 2018		(56,044	)		(4,056	)		76,604			16,504

(1)

Deferred tax assets are netted against deferred tax liabilities

Schedule of Deferred Consideration

(in U.S. dollars, in thousands)	As of December 31, 2018			As of June 30, 2018
Opening balance		—			—
Up-front milestone receivable recognized during the period		20,000			—
Amount recognized as revenue in the period		(10,000	)		—
Balance as of the end of the period		10,000			—

Cash flow information (Tables)

6 Months Ended

Dec. 31, 2018

Statement Of Cash Flows [Abstract]

Summary of Cash Flow Information

(in U.S. dollars, in thousands)
(a) Reconciliation of cash and cash equivalents	As of December 31, 2018		As of June 30, 2018
Cash at bank		76,599		37,221
Deposits at call		423		542
		77,022		37,763

(in U.S. dollars, in thousands)
(b) Reconciliation of net cash flows used in operations with (loss)/profit after income tax	Six months ended December 31, 2018			Six months ended December 31, 2017
(Loss)/profit for the period		(44,103	)		6,681
Add/(deduct) net loss for non-cash items as follows:
Depreciation and amortization		1,098			1,232
Foreign exchange (gains)/losses		(179	)		(192	)
Finance costs		3,333			—
Remeasurement of borrowing arrangements		752			—
Remeasurement of contingent consideration		634			(8,702	)
Equity settled share-based payment		2,026			4,029
Deferred tax benefit		(3,575	)		(26,262	)
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables		5,185			(7,496	)
(Increase)/decrease in prepayments		(3,553	)		1,519
Decrease/(increase) in tax assets		1,654			(910	)
Increase/(decrease) in trade creditors and accruals		8,474			(3,899	)
Increase/(decrease) in provisions		739			(1,221	)
Increase/(decrease) in deferred consideration		10,000			—
Net cash outflows used in operations		(17,515	)		(35,221	)

Issued capital (Tables)

6 Months Ended

Dec. 31, 2018

Disclosure Of Classes Of Share Capital [Abstract]

Summary of Movements in Ordinary Share Capital

	As of December 31,				As of December 31,
	2018		2017		2018			2017
	Shares No.				(U.S. dollars, in thousands)
Opening balance		482,639,654		428,221,398		889,481			830,425
Issues of ordinary shares during the period
Exercise of share options⁽¹⁾		313,108		255,912		258			83
Share based compensation for services rendered		—		158,901		—			240
Payment for contingent consideration		—		6,029,545		—			10,000
Entitlement offer to existing eligible shareholders		—		36,191,982		—			40,449
Placement of shares under a share placement agreement⁽²⁾		14,464,259		—		20,000			—
Transaction costs arising on share issue				—		(817	)		(2,208	)
		14,777,367		42,636,340		19,441			48,564
Share options reserve transferred to equity on exercise of options		—		—		313			—
Ending balance		497,417,021		470,857,738		909,235			878,989

(1)	Options are issued to employees, directors and consultants in accordance with the Mesoblast Employee Share Option Plan (“ESOP”). The shares issued and share capital received on the exercise of options are recorded above.

(2)	$20.0 million in an equity purchase of Mesoblast Limited at A$1.86 per share, representing a 20% premium to a blended volume weighted average price calculated over three months, one month and one day.

Financial Risk Management (Tables)

6 Months Ended

Dec. 31, 2018

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, 2018					June 30, 2018
(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		3,095		5	%		—		0	%
Non-current borrowings
Variable rate borrowings - Hercules		29,713		47	%		31,966		54	%
		32,808		52	%		31,966		54	%

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, 2018									June 30, 2018
(in U.S. dollars, in thousands, except percent data)	Low			High						Low			High
Borrowings - USD		10.45	%		10.45	%	USD 32,808⁽¹⁾				9.95	%		9.95	%	USD 31,966⁽¹⁾
Rate increase by 5%		10.97	%		10.97	%		USD 171			10.45	%		10.45	%		USD 159
Rate decrease by 5%		9.93	%		9.93	%		(USD 171	)		9.45	%		9.45	%		(USD 159	)

(1)

The effect on profit/loss of interest rate changes is based on the loan principal amount of $35.0 million with principal payments commencing in October 2019.

Schedule of Deposits Held which Derive Interest Revenue with Maximum and Minimum Interest Rates Being Earned

	As of								As of
	December 31, 2018								June 30, 2018
(in U.S. dollars, in thousands, except percent data)	Low			High					Low			High
Funds invested - USD		0.80	%		0.80	%	USD 0			0.80	%		0.80	%	USD 99
Rate increase by 10%		0.88	%		0.88	%	USD 0			0.88	%		0.88	%	USD 0
Rate decrease by 10%		0.72	%		0.72	%	USD 0			0.72	%		0.72	%	USD 0


AUD	Low			High					Low			High
Funds invested - AUD		2.75	%		2.75	%	AUD 600			2.72	%		2.72	%	AUD 600
Rate increase by 10%		3.03	%		3.03	%	AUD 2			2.99	%		2.99	%	AUD 2
Rate decrease by 10%		2.48	%		2.48	%	(AUD 2	)		2.45	%		2.45	%	(AUD 2	)

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, 2018					June 30, 2018
(in U.S. dollars, in thousands, except percent data)	Total		% of total loans			Total		% of total loans
Financial liabilities
Non-current borrowings
Borrowings - NovaQuest		30,674		48	%		27,431		46	%
		30,674		48	%		27,431		46	%

Schedule of Maturity Profile of Anticipated Future Contractual Cash Flows Borrowings and Carrying Value

(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⁾

(7,171

)

(19,971

)

(54,931

)

(42,578

)

(124,651

)

(63,482

)

(7,171

)

(19,971

)

(54,931

)

(42,578

)

(124,651

)

(63,482

)

(1)

(2)

(Losses)/earnings per share (Tables)

6 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Summary of (Loss) Earnings Per Share

	Three Months Ended					Six Months Ended
	December 31, 2018 Cents			December 31, 2017 Cents		December 31, 2018 Cents			December 31, 2017 Cents
(Losses)/earnings per share
(in cents)
(a) Basic (losses)/earnings per share
From continuing operations attributable to the ordinary equity holders of the company		(5.00	)		2.91		(9.08	)		1.46
Total basic (losses)/earnings per share attributable to the ordinary equity holders of the company		(5.00	)		2.91		(9.08	)		1.46

(b) Diluted (losses)/earnings per share
From continuing operations attributable to the ordinary equity holders of the company		(5.00	)		2.91		(9.08	)		1.46
Total basic (losses)/earnings per share attributable to the ordinary equity holders of the company		(5.00	)		2.91		(9.08	)		1.46

(c) Reconciliation of (losses)/earnings used in calculating (losses)/earnings per share
(in U.S. dollars, in thousands)
Basic (losses)/earnings per share
(Losses)/earnings attributable to the ordinary equity holders of the company used in calculating basic (losses)/earnings per share:
From continuing operations		(24,604	)		13,703		(44,103	)		6,681

Diluted (losses)/earnings per share
(Losses)/earnings from continuing operations attributable to the ordinary equity holders of the company:
Used in calculating basic (losses)/earnings per share		(24,604	)		13,703		(44,103	)		6,681
(Losses)/earnings attributable to the ordinary equity holders of the company used in calculating diluted losses per share		(24,604	)		13,703		(44,103	)		6,681


	Three Months Ended					Six Months Ended
	December 31, 2018 (in shares)			December 31, 2017 (in shares)		December 31, 2018 (in shares)			December 31, 2017 (in shares)
Weighted average number of ordinary shares used as the denominator in calculating basic (losses)/earnings per share		491,760,046			471,205,385		485,602,719			457,658,570
Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted (losses)/earnings per share		491,760,046			471,447,464		485,602,719			457,973,954

Basis of Preparation - Additional Information (Details) € in Millions, $ in Millions			1 Months Ended				3 Months Ended		6 Months Ended
	Oct. 12, 2018 USD ($)	Sep. 14, 2018 USD ($)	Jan. 31, 2019 USD ($)	Dec. 31, 2018 EUR (€)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 EUR (€)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 AUD ($)	Dec. 31, 2018 EUR (€)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 EUR (€)	Dec. 31, 2018 EUR (€)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Comprehensive gain (loss) after income tax							$ (24,656,000)	$ 13,365,000	$ (44,091,000)			$ 6,248,000
Net cash (outflows) in operating activities									17,515,000			35,221,000
Cash & cash equivalents					$ 47,386,000		77,022,000	47,386,000	77,022,000			47,386,000			$ 37,763,000	$ 45,761,000
Gross cash proceeds from drawing									28,950,000
Maximum available additional funds on equity facility									$ 90,000,000	$ 120.0
Additional equity facility available duration									6 months	6 months	6 months
Deferred consideration up-front milestone receivable recognized		$ 20,000,000							$ 20,000,000
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
Milestone payment received									26,409,000			6,125,000
Revenue							1,870,000	13,397,000	13,507,000			14,571,000
Milestone Revenue							500,000	12,334,000	11,000,000			12,834,000
Revenue recognized relation to patent license agreement									0			0
TiGenix NV
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Milestone revenue relating to non-refundable up-front payment					5,900,000	€ 5.0			5,900,000		€ 5.0
Milestone payment received \| €				€ 5.0
Revenue					5,900,000	€ 5.0
TiGenix NV \| Licenses to Patents
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Milestone revenue relating to non-refundable up-front payment												5,900,000	€ 5.0
Milestone Revenue												11,800,000
Top of Range \| TiGenix NV
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Milestone revenue relating to non-refundable up-front payment \| €														€ 10.0
Tasly
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Deferred consideration up-front milestone receivable recognized	$ 20,000,000
Revenue recognized from up-front payment as deferred consideration		$ 10,000,000
Proceeds from closing of strategic alliance												0
JCR Pharmaceuticals Co. Ltd
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Revenue recognized relation to patent license agreement									1,000,000			1,000,000
Royalties receivable under sales-based milestones					$ 1,600,000		$ 2,200,000	$ 1,600,000	$ 2,200,000			$ 1,600,000
Drawdown Funding \| Hercules Capital, Inc. \| Tranche Two
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Gross cash proceeds from drawing			$ 15,000,000

Significant Changes in the Current Reporting Period - Additional Information (Details) - USD ($) $ in Thousands		6 Months Ended
	Sep. 14, 2018	Dec. 31, 2018	Sep. 30, 2018
Disclosure Of Significant Changes In Current Reporting Period [Abstract]
Up-front milestone receivable recognized during the period	$ 20,000	$ 20,000
Amount recognized as revenue in the period	$ 10,000	(10,000)
Deferred consideration		$ 10,000	$ 10,000

Loss Before Income Tax - Summary of Loss Before Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Revenue
Commercialization Revenue	$ 1,217	$ 949	$ 2,223	$ 1,555
Milestone Revenue	500	12,334	11,000	12,834
Interest Revenue	153	114	284	182
Total Revenue	1,870	13,397	13,507	14,571
Clinical trial and research & development	(10,555)	(9,752)	(21,921)	(19,457)
Manufacturing production & development	(3,989)	(340)	(7,640)	(762)
Employee benefits
Salaries and employee benefits	(5,088)	(4,961)	(9,920)	(9,537)
Defined contribution superannuation expenses		(93)	(184)	(192)
Equity settled share-based payment transactions	(1,208)	(2,140)	(2,026)	(4,029)
Total Employee benefits	(6,296)	(7,194)	(12,130)	(13,758)
Depreciation and amortization of non-current assets
Plant and equipment depreciation	(150)	(237)	(310)	(504)
Intellectual property amortization	(395)	(364)	(788)	(728)
Total Depreciation and amortization of non-current assets	(545)	(601)	(1,098)	(1,232)
Other Management & administration expenses
Overheads & administration	(2,249)	(1,965)	(6,253)	(3,827)
Consultancy	(797)	(950)	(1,646)	(1,716)
Legal, patent and other professional fees	(881)	(845)	(2,451)	(1,383)
Intellectual property expenses (excluding the amount amortized above)	(703)	(1,019)	(1,295)	(1,788)
Total Other Management & administration expenses	(4,630)	(4,779)	(11,645)	(8,714)
Fair value remeasurement of contingent consideration
Remeasurement of contingent consideration	(11)	(793)	(634)	8,702
Total Fair value remeasurement of contingent consideration	(11)	(793)	(634)	8,702
Other operating income and expenses
Remeasurement of borrowing arrangements	(752)		(752)
Research & development tax incentive		317		910
Foreign exchange gains/(losses)	(23)	106	(174)	181
Foreign withholding tax paid	(52)		(52)
Total Other operating income and expenses	(827)	423	(978)	1,091
Finance costs
Interest expense	(2,486)		(5,139)
Total Finance costs	(2,486)		(5,139)
Loss before income tax	$ (27,469)	$ (9,639)	$ (47,678)	$ (19,559)

Loss Before Income Tax - Summary of Loss Before Income Tax (Parenthetical) (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jun. 30, 2019 AUD ($)
Disclosure Of Loss Before Income Tax Line Item
Total share-based payment transactions	$ 1,828,380	$ 2,140,333	$ 2,645,938	$ 4,029,194
Revenue	1,870,000	13,397,000	13,507,000	14,571,000
Events after Reporting Period
Disclosure Of Loss Before Income Tax Line Item
Revenue					$ 20.0
Research and Development
Disclosure Of Loss Before Income Tax Line Item
Total share-based payment transactions	621,949	1,232,501	1,149,804	2,342,706
Manufacturing and Commercialization
Disclosure Of Loss Before Income Tax Line Item
Total share-based payment transactions	90,632	161,871	155,239	389,574
Management and Administration
Disclosure Of Loss Before Income Tax Line Item
Total share-based payment transactions	$ 1,115,799	$ 745,961	1,340,895	1,296,914
Research and Development Tax Incentive \| Australian Government
Disclosure Of Loss Before Income Tax Line Item
Other income				$ 900,000

Income Tax Benefit/(Expense) - Summary of Income Tax Expense/(Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Current tax
Current tax		$ 614		$ 614
Total current tax expense		614		614
Deferred tax
(Increase)/decrease in deferred tax assets	$ (2,841)	26,687	$ (3,526)	23,825
(Decrease)/increase in deferred tax liabilities	(24)	(50,643)	(49)	(50,679)
Total deferred tax (benefit)	(2,865)	(23,956)	(3,575)	(26,854)
Income tax (benefit)	$ (2,865)	$ (23,342)	$ (3,575)	$ (26,240)

- Definition

The aggregate amount included in the determination of profit (loss) for the period in respect of current tax and deferred tax that relate to continuing operations. [Refer: Continuing operations [member]; Current tax expense (income); Deferred tax expense (income)]

+ References + Details

Income Tax Benefit/(Expense) - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items]
Deferred tax assets not brought to account	$ 54,519		$ 48,425
U.S. Corporate income tax rate
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items]
Corporate income tax rate	21.00%	35.00%
Deferred tax assets recognized	21.00%	35.00%

Income Tax Benefit/(Expense) - Summary of Deferred Tax Assets Not Brought to Account (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Unused tax losses
Potential tax benefit at local tax rates ,Unused tax losses	$ 48,036	$ 41,501
Other temporary differences
Potential tax benefit at local tax rates ,Other temporary differences	3,263	3,704
Other tax credits
Potential tax benefit at local tax rates ,Other tax credit	3,220	3,220
Deferred tax assets not brought to account	$ 54,519	$ 48,425

Financial Assets and Liabilities - Summary of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Disclosure Of Financial Assets And Liabilities [Line Items]
Cash & cash equivalents	$ 77,022	$ 37,763	$ 47,386	$ 45,761
Trade & other receivables	3,934	50,366
Financial assets at fair value through other comprehensive income	2,516	2,321
Other non-current assets	3,328	3,361
Financial assets, Total	86,800	93,811
Trade and other payables	25,120	18,921
Borrowings	63,482	59,397
Contingent considerations	42,234	42,070
Financial liabilities, Total	130,836	120,388
Liabilities at Amortized Cost
Disclosure Of Financial Assets And Liabilities [Line Items]
Trade and other payables	25,120	18,921
Borrowings	63,482	59,397
Financial liabilities, Total	88,602	78,318
Liabilities at FVTPL
Disclosure Of Financial Assets And Liabilities [Line Items]
Contingent considerations	42,234	42,070
Financial liabilities, Total	42,234	42,070
Assets at Amortized Cost
Disclosure Of Financial Assets And Liabilities [Line Items]
Cash & cash equivalents	77,022	37,763
Trade & other receivables	3,934	50,366
Other non-current assets	3,328	3,361
Financial assets, Total	84,284	91,490
Assets at FVOCI
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial assets at fair value through other comprehensive income	2,516	2,321
Financial assets, Total	$ 2,516	$ 2,321

Financial Assets and Liabilities - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Disclosure Of Financial Assets And Liabilities [Abstract]
Cash at bank	$ 76,599	$ 37,221
Deposits at call	423	542
Cash and cash equivalents	$ 77,022	$ 37,763	$ 47,386	$ 45,761

Financial Assets and Liabilities - Summary of Cash and Cash Equivalents (Parenthetical) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Jun. 30, 2018
Disclosure Of Financial Assets And Liabilities [Abstract]
Interest-bearing deposits at call held as security	$ 0.4	$ 0.4

Financial Assets and Liabilities - Summary of Trade and Other Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Disclosure Of Financial Assets And Liabilities [Abstract]
Trade debtors	$ 1,216	$ 6,630
Funds receivable from debt financing and unissued capital		38,950
Income tax and tax incentives recoverable	1,592	3,305
Other receivables	93	615
Foreign withholding tax recoverable	471	471
Security deposit	251	250
Sundry debtors	51	81
Other recoverable taxes (Goods and services tax and value-added tax)	258	53
Interest receivables	2	11
Trade and other receivables	$ 3,934	$ 50,366

Financial Assets and Liabilities - Summary of Trade and Other Receivables (Parenthetical) (Details) - USD ($) $ in Thousands		6 Months Ended
	Jul. 10, 2018	Dec. 31, 2018	Jun. 30, 2018
Disclosure Of Financial Assets And Liabilities [Line Items]
Receivable from financing agreement			$ 38,950
Gross cash proceeds from drawing		$ 28,950
NovaQuest
Disclosure Of Financial Assets And Liabilities [Line Items]
Receivable from financing agreement			$ 39,000
NovaQuest \| Financing Facility
Disclosure Of Financial Assets And Liabilities [Line Items]
Gross cash proceeds from drawing	$ 39,000

Financial Assets and Liabilities - Summary of Prepayments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Disclosure Of Financial Assets And Liabilities [Abstract]
Clinical trial research and development expenditure	$ 13,453	$ 12,042
Prepaid insurance and subscriptions	2,117	141
Other	1,275	759
Prepayments	$ 16,845	$ 12,942

Financial Assets and Liabilities - Summary of Trade and Other Payables (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Disclosure Of Financial Assets And Liabilities [Abstract]
Trade and other payables	$ 25,120	$ 18,921
Trade and other payables	$ 25,120	$ 18,921

Financial Assets and Liabilities - Summary of Borrowings (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
Current
Borrowing arrangements	$ 3,095
Current borrowings	3,095
Non-current
Borrowing arrangements	61,905	$ 65,000
Less: transaction costs	(6,328)	(6,328)
Amortization of carrying amount, net of payments made	4,810	725
Borrowings	$ 60,387	$ 59,397

Financial Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Jan. 14, 2019	Dec. 20, 2018	Jun. 30, 2018	Jun. 29, 2018	Mar. 06, 2018
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings	$ 63,482	$ 63,482			$ 59,397
Current portion of borrowings	3,095	3,095
Interest-bearing deposits at call held as security	400	400			400
Security deposit	251	251			$ 250
Remeasurement of borrowing arrangements	752	752
Hercules Capital, Inc.
Disclosure Of Financial Assets And Liabilities [Line Items]
Interest-bearing deposits at call held as security	400	400
Security deposit	300	300
Hercules Capital, Inc. \| Other Assets
Disclosure Of Financial Assets And Liabilities [Line Items]
Bank guarantee	700	700
Letters of credit	$ 1,200	$ 1,200
Hercules Capital, Inc. \| Floating Interest Rate
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings principal amount							$ 75,000
Borrowings, interest rate	9.45%	9.45%		10.45%			9.45%
Remaing available borrowings	$ 25,000	$ 25,000
Borrowings, maturity		March 2022
Current portion of borrowings	3,100	$ 3,100
Hercules Capital, Inc. \| Potential Ordinary Share Transactions \| Floating Interest Rate
Disclosure Of Financial Assets And Liabilities [Line Items]
Total facility amount			$ 15,000
Hercules Capital, Inc. \| Tranche One
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings	$ 35,000	$ 35,000
Hercules Capital, Inc. \| Tranche One \| Floating Interest Rate
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings							$ 35,000
Hercules Capital, Inc. \| Tranche Two \| Potential Ordinary Share Transactions \| Floating Interest Rate
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings			$ 15,000
NovaQuest Capital Management, L.L.C.
Disclosure Of Financial Assets And Liabilities [Line Items]
Description of repayment of borrowings		If there are no net sales of pediatric aGVHD, the loan is only repayable on maturity in 2026. If in any annual period 25% of net sales of pediatric 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 pediatric aGVHD is less than the payment cap, then the payment is limited to 25% of net sales of pediatric 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.
Remeasurement of borrowing arrangements		$ 700
NovaQuest Capital Management, L.L.C. \| Fixed interest rate [member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings, interest rate						15.00%
Borrowings, maturity		July 2026
Total facility amount						$ 40,000
NovaQuest Capital Management, L.L.C. \| Tranche One \| Fixed interest rate [member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings						$ 30,000

Financial Assets and Liabilities - Summary of Net Debt Reconciliation (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2018 USD ($)
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Cashflows from financing activities - as of June 30, 2018	$ 31,312
Changes from financing cash flows
Proceeds from debt	28,950
Payments of transaction costs from borrowings	(1,546)
Total changes in liabilities arising on financing cash flows	27,404
Accrued transaction costs	(44)
Amortization of carrying amount, net of payments made	4,810
Carrying value - as of December 31, 2018	63,482
Current Borrowings
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Cashflows from financing activities - as of June 30, 2018	3,095
Changes from financing cash flows
Carrying value - as of December 31, 2018	3,095
Non-current Borrowings
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Cashflows from financing activities - as of June 30, 2018	28,217
Changes from financing cash flows
Proceeds from debt	28,950
Payments of transaction costs from borrowings	(1,546)
Total changes in liabilities arising on financing cash flows	27,404
Accrued transaction costs	(44)
Amortization of carrying amount, net of payments made	4,810
Carrying value - as of December 31, 2018	$ 60,387

Financial Assets and Liabilities - Summary of Financial Assets and Liabilities Measured and Recognized at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Financial assets at fair value through other comprehensive income:
Total Financial Assets	$ 2,516	$ 2,321
Financial liabilities at fair value through profit or loss:
Contingent considerations	42,234	42,070
Total Financial Liabilities	42,234	42,070
Level 3
Financial assets at fair value through other comprehensive income:
Total Financial Assets	2,516	2,321
Financial liabilities at fair value through profit or loss:
Contingent considerations	42,234	42,070
Total Financial Liabilities	42,234	42,070
Equity Securities
Financial assets at fair value through other comprehensive income:
Total Financial Assets	2,516	2,321
Equity Securities \| Level 3
Financial assets at fair value through other comprehensive income:
Total Financial Assets	$ 2,516	$ 2,321

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, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Disclosure Of Financial Instruments [Line Items]
Remeasurement	$ 11	$ 793	$ 634	$ (8,702)
Level 3
Disclosure Of Financial Instruments [Line Items]
Opening balance			42,070	$ 63,595	$ 63,595
Amount used during the year			(358)		(10,984)
Remeasurement			522		(10,541)
Closing balance	$ 42,234		$ 42,234		$ 42,070

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, 2018	Jun. 30, 2018
Level 3
Disclosure Of Financial Instruments [Line Items]
Gain loss on re-measurement of contingent consideration provision	$ 0.5	$ (10.5)

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, 2018	Jun. 30, 2018	Jun. 30, 2017
Disclosure Of Financial Instruments [Line Items]
Contingent consideration provision	$ 42,234	$ 42,070	$ 63,595
Unobservable inputs	Expected unit revenues
Relationship of unobservable inputs to fair value	Six months ended December 31, 2018: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%. Year ended June 30, 2018: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%.
Discounted cash flow [member]
Disclosure Of Financial Instruments [Line Items]
Contingent consideration provision	$ 42,234	$ 42,070
Valuation technique	Discounted cash flows
Unobservable inputs	Risk adjusted discount rate
Relationship of unobservable inputs to fair value	Six months ended December 31, 2018: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%. Year ended June 30, 2018: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%.
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 December 31, 2018: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 4%. Year ended June 30, 2018: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 4%.

Financial Assets and Liabilities - Summary of Valuation Processes of Contingent Consideration at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Disclosure Of Financial Instruments [Abstract]
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets	$ 23,942	$ 23,674
Fair value of royalty payments from commercialization of the intellectual property acquired	18,292	18,396
Contingent Consideration	$ 42,234	$ 42,070

Non-financial Assets and Liabilities - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	$ 584,606	$ 586,350
Exchange differences	(3)	(3)
Amortization charge	(788)	(1,741)
Closing net book amount	583,815	584,606
Cost
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	650,899
Closing net book amount	650,874	650,899
Accumulated Amortization
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	(4,374)
Closing net book amount	(5,140)	(4,374)
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	1,770	1,898
Exchange differences	(4)	(3)
Amortization charge	(61)	(125)
Closing net book amount	1,705	1,770
Acquired Licenses to Patents \| Cost
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	2,749
Closing net book amount	2,724	2,749
Acquired Licenses to Patents \| Accumulated Amortization
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	(979)
Closing net book amount	(1,019)	(979)
In-process Research and Development Acquired
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	427,779	427,779
Exchange differences	(1)
Closing net book amount	427,778	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	489,697	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	20,604	22,220
Exchange differences	2
Amortization charge	(727)	(1,616)
Closing net book amount	19,879	20,604
Current Marketed Products \| Cost
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	23,999
Closing net book amount	24,000	23,999
Current Marketed Products \| Accumulated Amortization
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	(3,395)
Closing net book amount	$ (4,121)	$ (3,395)

Non-financial Assets and Liabilities - Summary of Deferred Tax Balances (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Deferred tax assets
Tax losses	$ 56,044	$ 55,904
Other temporary differences	4,056	669
Total deferred tax assets	60,100	56,573
Deferred tax liabilities
Intangible assets	76,604	76,652
Total deferred tax liabilities	76,604	76,652
Net deferred tax liabilities	16,504	20,079
Deferred tax assets expected to be settled after 12 months	60,100	56,573
Deferred tax liabilities expected to be settled within 12 months	99	147
Deferred tax liabilities expected to be settled after 12 months	$ 76,505	$ 76,505

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, 2018	Jun. 30, 2018
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	$ 20,079	$ 49,293
Reclassifications		1,473
Charged/(credited) to:
- profit or loss	(3,575)	(30,687)
Ending balance	16,504	20,079
Tax losses (DTA)
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	(55,904)	(74,660)
Reclassifications		1,473
Charged/(credited) to:
- profit or loss	(140)	17,283
Ending balance	(56,044)	(55,904)
Other Temporary Differences (DTA)
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	(669)	(3,566)
Reclassifications		0
Charged/(credited) to:
- profit or loss	(3,387)	2,897
Ending balance	(4,056)	(669)
Intangible Assets (DTL)
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	76,652	127,519
Reclassifications		0
Charged/(credited) to:
- profit or loss	(48)	(50,867)
Ending balance	$ 76,604	$ 76,652

Non-financial Assets and Liabilities - Schedule of Deferred Consideration (Details) - USD ($) $ in Thousands		6 Months Ended
	Sep. 14, 2018	Dec. 31, 2018
Disclosure Of Non Financial Assets And Liabilities [Abstract]
Up-front milestone receivable recognized during the period	$ 20,000	$ 20,000
Amount recognized as revenue in the period	$ 10,000	(10,000)
Balance as of the end of the period		$ 10,000

Cash Flow Information - Summary of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018	Jun. 30, 2017
Reconciliation of cash and cash equivalents
Cash at bank	$ 76,599		$ 76,599		$ 37,221
Deposits at call	423		423		542
Cash and cash equivalents	77,022	$ 47,386	77,022	$ 47,386	$ 37,763	$ 45,761
(Loss)/profit for the period	(24,604)	$ 13,703	(44,103)	6,681
Add/(deduct) net loss for non-cash items as follows:
Depreciation and amortization			1,098	1,232
Foreign exchange (gains)/losses			(179)	(192)
Finance costs			3,333
Remeasurement of borrowing arrangements	$ 752		752
Remeasurement of contingent consideration			634	(8,702)
Equity settled share-based payment			2,026	4,029
Deferred tax benefit			(3,575)	(26,262)
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables			5,185	(7,496)
(Increase)/decrease in prepayments			(3,553)	1,519
Decrease/(increase) in tax assets			1,654	(910)
Increase/(decrease) in trade creditors and accruals			8,474	(3,899)
Increase/(decrease) in provisions			739	(1,221)
Increase/(decrease) in deferred consideration			10,000
Net cash (outflows) in operating activities			$ (17,515)	$ (35,221)

Issued Capital - Summary of Movements in Ordinary Share Capital (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($) shares
Disclosure Of Classes Of Share Capital [Line Items]
Beginning balance	$ 546,008	$ 516,766
Issues of ordinary shares during the period
Ending balance	$ 524,557	$ 575,605
Ordinary Shares
Disclosure Of Classes Of Share Capital [Line Items]
Beginning balance, Shares \| shares	482,639,654	428,221,398
Beginning balance	$ 889,481	$ 830,425
Issues of ordinary shares during the period
Exercise of share options ,shares \| shares	313,108	255,912
Exercise of share options(1)	$ 258	$ 83
Share based compensation for services rendered, shares \| shares		158,901
Share based compensation for services rendered		$ 240
Payment of contingent consideration, shares \| shares		6,029,545
Payment for contingent consideration		$ 10,000
Entitlement offer to existing eligible shareholders, shares \| shares		36,191,982
Entitlement offer to existing eligible shareholders		$ 40,449
Transaction costs arising on share issue	$ (817)	$ (2,208)
Total contributions of equity during the period, shares \| shares	14,777,367	42,636,340
Total contributions of equity during the period	$ 19,441	$ 48,564
Share options reserve transferred to equity on exercise of options	$ 313
Ending balance, Shares \| shares	497,417,021	470,857,738
Ending balance	$ 909,235	$ 878,989
Ordinary Shares \| Placement Agreement
Issues of ordinary shares during the period
Placement of shares under a share placement agreement, shares \| shares	14,464,259
Placement of shares under a share placement agreement	$ 20,000

Issued Capital - Summary of Movements in Ordinary Share Capital (Parenthetical) (Details) - Tasly - Equity Purchase Fee $ / shares in Units, $ in Millions	Oct. 12, 2018 USD ($) $ / shares
Disclosure Of Classes Of Share Capital [Line Items]
Proceeds from closing of strategic alliance \| $	$ 20.0
Sale of equity price per share \| $ / shares	$ 1.86
Premium percentage used to calculate equity purchase price per share	20.00%

Financial Risk Management - Summary of Borrowings of Interest Rate Changes (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Disclosure of Financial Risk Management [Line Items]
Variable rate borrowings	$ 130,836	$ 120,388
Interest Rate Risk
Disclosure of Financial Risk Management [Line Items]
Variable rate borrowings	$ 32,808	$ 31,966
Percentage of loans	52.00%	54.00%
Interest Rate Risk \| Hercules Capital, Inc.
Disclosure of Financial Risk Management [Line Items]
Variable rate borrowings, current	$ 3,095
Variable rate borrowings, Non-current	$ 29,713	$ 31,966
Interest Rate Risk \| Hercules Capital, Inc. \| Current Borrowings
Disclosure of Financial Risk Management [Line Items]
Percentage of loans	5.00%	0.00%
Interest Rate Risk \| Hercules Capital, Inc. \| Non-current Borrowings
Disclosure of Financial Risk Management [Line Items]
Percentage of loans	47.00%	54.00%

- Definition

The amount of liabilities that are: (a) a contractual obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to deliver a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. Also, for those purposes the entity’s own equity instruments do not include puttable financial instruments that are classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. As an exception, an instrument that meets the definition of a financial liability is classified as an equity instrument if it has all the features and meets the conditions in paragraphs 16A-16B or paragraphs 16C-16D of IAS 32. [Refer: Financial instruments, class [member]; Financial assets; Derivatives [member]]

+ References + Details

Financial Risk Management - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
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	$ 3.2
Decrease in profit	3.2
Decrease non-current borrowings	1.4
Increase in profit	$ 1.4
Percentage of decrease in net sales	20.00%
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 - 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, 2018	Jun. 30, 2018
Disclosure of Financial Risk Management [Line Items]
Variable rate borrowings, Non-current	$ 32,808	$ 31,966
Rate increase on borrowings	171	159
Rate decrease on borrowings	$ (171)	$ (159)
Bottom of Range
Disclosure of Financial Risk Management [Line Items]
Borrowings Interest rate	10.45%	9.95%
Rate increase	0.88%	0.88%
Rate decrease	0.72%	0.72%
Bottom of Range \| Borrowings
Disclosure of Financial Risk Management [Line Items]
Rate increase	10.97%	10.45%
Rate decrease	9.93%	9.45%
Top of Range
Disclosure of Financial Risk Management [Line Items]
Borrowings Interest rate	10.45%	9.95%
Rate increase	0.88%	0.88%
Rate decrease	0.72%	0.72%
Top of Range \| Borrowings
Disclosure of Financial Risk Management [Line Items]
Rate increase	10.97%	10.45%
Rate decrease	9.93%	9.45%

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, 2018	Jun. 30, 2018
Disclosure of Financial Risk Management [Line Items]
Borrowings	$ 63,482	$ 59,397
Hercules Capital, Inc. \| Tranche One
Disclosure of Financial Risk Management [Line Items]
Borrowings	$ 35,000

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, 2018 USD ($)	Dec. 31, 2018 AUD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2018 AUD ($)
USD
Disclosure of Financial Risk Management [Line Items]
Funds invested	$ 99		$ 99
Rate increase on funds invested	0		0
Rate decrease on funds invested	$ 0		$ 0
USD \| Bottom of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	0.80%	0.80%	0.80%	0.80%
Rate increase	0.88%	0.88%	0.88%	0.88%
Rate decrease	0.72%	0.72%	0.72%	0.72%
USD \| Top of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	0.80%	0.80%	0.80%	0.80%
Rate increase	0.88%	0.88%	0.88%	0.88%
Rate decrease	0.72%	0.72%	0.72%	0.72%
AUD
Disclosure of Financial Risk Management [Line Items]
Funds invested		$ 600		$ 600
Rate increase on funds invested		2		2
Rate decrease on funds invested		$ (2)		$ (2)
AUD \| Bottom of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	2.75%	2.75%	2.72%	2.72%
Rate increase	3.03%	3.03%	2.99%	2.99%
Rate decrease	2.48%	2.48%	2.45%	2.45%
AUD \| Top of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	2.75%	2.75%	2.72%	2.72%
Rate increase	3.03%	3.03%	2.99%	2.99%
Rate decrease	2.48%	2.48%	2.45%	2.45%

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	6 Months Ended	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
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 - Summary of Borrowing to Price Rate Changes (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Disclosure of Financial Risk Management [Line Items]
Borrowings	$ 60,387	$ 59,397
Price Risk
Disclosure of Financial Risk Management [Line Items]
Borrowings	$ 30,674	$ 27,431
Percent of total loans	48.00%	46.00%
NovaQuest \| Price Risk
Disclosure of Financial Risk Management [Line Items]
Borrowings	$ 30,674	$ 27,431
Percent of total loans	48.00%	46.00%

Financial Risk Management - Schedule of Maturity Profile of Anticipated Future Contractual Cash Flows Borrowings and Carrying Value (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	$ (124,651)
Carrying amount	(63,482)
Within 1 year [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(7,171)
Between 1-2 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(19,971)
Between 2-5 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(54,931)
Over 5 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(42,578)
Borrowings
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(124,651)
Carrying amount	(63,482)
Borrowings \| Within 1 year [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(7,171)
Borrowings \| Between 1-2 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(19,971)
Borrowings \| Between 2-5 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(54,931)
Borrowings \| Over 5 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	$ (42,578)

(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, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
(a) Basic (losses)/earnings per share
Basic - (losses)/earnings per share	$ (0.0500)	$ 0.0291	$ (0.0908)	$ 0.0146
Total basic (losses)/earnings per share attributable to the ordinary equity holders of the company	(0.0500)	0.0291	(0.0908)	0.0146
(b) Diluted (losses)/earnings per share
Diluted - (losses)/earnings per share	(0.0500)	0.0291	(0.0908)	0.0146
Total basic (losses)/earnings per share attributable to the ordinary equity holders of the company	$ (0.0500)	$ 0.0291	$ (0.0908)	$ 0.0146
(c) Reconciliation of (losses)/earnings used in calculating (losses)/earnings per share
From continuing operations	$ (24,604)	$ 13,703	$ (44,103)	$ 6,681
Used in calculating basic (losses)/earnings per share	(24,604)	13,703	(44,103)	6,681
(Losses)/earnings attributable to the ordinary equity holders of the company used in calculating diluted losses per share	$ (24,604)	$ 13,703	$ (44,103)	$ 6,681
Weighted average number of ordinary shares used as the denominator in calculating basic (losses)/earnings per share	491,760,046	471,205,385	485,602,719	457,658,570
Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted (losses)/earnings per share	491,760,046	471,447,464	485,602,719	457,973,954

Events Occurring After the Reporting Period - Additional Information (Details) - USD ($) $ in Millions	Jan. 07, 2019	Jan. 14, 2019
Hercules Capital, Inc. \| Potential Ordinary Share Transactions \| Floating Interest Rate
Disclosure Of Nonadjusting Events After Reporting Period [Line Items]
Total facility amount		$ 15.0
Maxim Group \| Major Ordinary Share Transactions
Disclosure Of Nonadjusting Events After Reporting Period [Line Items]
Number of shares issued	1,209,187
Ordinary shares issued (fully paid)	1,209,187
Proceeds from equity issuance	$ 1.2

Segment Information - Additional Information (Details)	6 Months Ended
Segment Information - Additional Information (Details)	Dec. 31, 2018 Segment
Disclosure Of Operating Segments [Abstract]
Number of operating segment	1