Document and Entity Information	3 Months Ended
Document and Entity Information	Sep. 30, 2019
Cover [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	MESOBLAST LTD
Entity Central Index Key	0001345099
Current Fiscal Year End Date	--06-30
Entity Address, Address Line One	Level 38
Entity Address, Address Line Two	55 Collins Street
Entity Address, City or Town	Melbourne
Entity Address, Postal Zip Code	3000
Entity Address, Country	AU
Entity File Number	001-37626

Consolidated Income Statement (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenue	$ 17,048	$ 11,637
Research & development	(12,389)	(18,489)
Manufacturing commercialization	(2,698)	(4,317)
Management and administration	(5,463)	(5,614)
Fair value remeasurement of contingent consideration	(288)	(622)
Other operating income and expenses	(169)	(151)
Finance costs	(3,457)	(2,653)
Loss before income tax	(7,416)	(20,209)
Income tax benefit	1,932	711
Loss attributable to the owners of Mesoblast Limited	$ (5,484)	$ (19,498)
Losses per share from continuing operations attributable to the ordinary equity holders of the Group:
Basic - losses per share	$ (0.0110)	$ (0.0407)
Diluted - losses per share	$ (0.0110)	$ (0.0407)

Consolidated Statement of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Statement Of Comprehensive Income [Abstract]
Loss for the period	$ (5,484)	$ (19,498)
Items that may be reclassified to profit and loss
Financial assets at fair value through other comprehensive income	(365)	87
Exchange differences on translation of foreign operations	(332)	(23)
Other comprehensive income/(loss) for the period, net of tax	(697)	64
Total comprehensive losses attributable to the owners of Mesoblast Limited	$ (6,181)	$ (19,434)

Consolidated Statement of Changes in Equity (unaudited) - USD ($) $ in Thousands	Total	Previously Reported	Restated	Adjustment On Adoption Of I F R S16	Issued Capital	Issued Capital Previously Reported	Issued Capital Restated	Share Option Reserve	Share Option Reserve Previously Reported	Share Option Reserve Restated	Investment Revaluation Reserve	Investment Revaluation Reserve Previously Reported	Investment Revaluation Reserve Restated	Foreign Currency Translation Reserve	Foreign Currency Translation Reserve Previously Reported	Foreign Currency Translation Reserve Restated	Retained Earnings	Retained Earnings Previously Reported	Retained Earnings Restated	Retained Earnings Adjustment On Adoption Of I F R S16
Beginning balance at Jun. 30, 2018	$ 546,008				$ 889,481			$ 75,974			$ 21			$ (39,276)			$ (380,192)
Profit/(loss) for the period	(19,498)																(19,498)
Other comprehensive income/(loss)	64										87			(23)
Total comprehensive profit/(loss) for the period	(19,434)										87			(23)			(19,498)
Transactions with owners in their capacity as owners:
Contributions of equity net of transaction costs	212				212
Transactions with owners in their capacity as owners	212				212
Transfer of exercised options					287			(287)
Fair value of share-based payments	814							814
Reclassification of modified options to/(from) liability	(1)							(1)
Increase (decrease) in equity	813				287			526
Ending balance at Sep. 30, 2018	527,599				889,980			76,500			108			(39,299)			(399,690)
Beginning balance at Jun. 30, 2019	481,052	$ 481,052	$ 480,225	$ (827)		$ 910,405	$ 910,405		$ 80,034	$ 80,034		$ 17	$ 17		$ (39,413)	$ (39,413)		$ (469,991)	$ (470,818)	$ (827)
Profit/(loss) for the period	(5,484)																(5,484)
Other comprehensive income/(loss)	(697)										(365)			(332)
Total comprehensive profit/(loss) for the period	(6,181)										(365)			(332)			(5,484)
Transactions with owners in their capacity as owners:
Contributions of equity net of transaction costs	299				299
Transactions with owners in their capacity as owners	299				299
Transfer of exercised options					238			(238)
Fair value of share-based payments	804							804
Increase (decrease) in equity	804				238			566
Ending balance at Sep. 30, 2019	$ 475,147				$ 910,942			$ 80,600			$ (348)			$ (39,745)			$ (476,302)

Consolidated Balance Sheet (unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Current Assets
Cash & cash equivalents	$ 34,536	$ 50,426
Trade & other receivables	17,857	4,060
Prepayments	8,200	8,036
Total Current Assets	60,593	62,522
Non-Current Assets
Property, plant and equipment	978	826
Right-of-use assets	4,233
Financial assets at fair value through other comprehensive income	1,952	2,317
Other non-current assets	3,299	3,324
Intangible assets	582,731	583,126
Total Non-Current Assets	593,193	589,593
Total Assets	653,786	652,115
Current Liabilities
Trade and other payables	12,740	13,060
Provisions	26,977	7,264
Borrowings	18,851	14,007
Lease liabilities	1,524
Deferred consideration	10,000	10,000
Total Current Liabilities	70,092	44,331
Lease liabilities	3,916	0
Non-Current Liabilities
Deferred tax liability	9,195	11,124
Provisions	30,555	48,329
Borrowings	64,881	67,279
Total Non-Current Liabilities	108,547	126,732
Total Liabilities	178,639	171,063
Net Assets	475,147	481,052
Equity
Issued Capital	910,942	910,405
Reserves	40,507	40,638
(Accumulated losses)/retained earnings	(476,302)	(469,991)
Total Equity	$ 475,147	$ 481,052

Consolidated Statement of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Commercialization revenue received	$ 1,739	$ 1,095
Milestone payment received		500
Research and development tax incentive received	1,499	1,654
Payments to suppliers and employees (inclusive of goods and services tax)	(17,539)	(22,039)
Interest received	173	136
Interest and other costs of finance paid	(1,427)	(887)
Income taxes (paid)/refunded	(3)	(3)
Net cash (outflows) in operating activities	(15,558)	(19,544)
Cash flows from investing activities
Investment in fixed assets	(153)	(39)
Payments for licenses	(100)
Net cash (outflows)/inflows in investing activities	(253)	(39)
Cash flows from financing activities
Proceeds from borrowings		28,950
Payments of transaction costs from borrowings		(1,534)
Proceeds from issue of shares	299	10,048
Payments for share issue costs		(358)
Payment of lease liabilities	(335)
Net cash inflows by financing activities	(36)	37,106
Net increase/(decrease) in cash and cash equivalents	(15,847)	17,523
Cash and cash equivalents at beginning of period	50,426	37,763
FX (losses)/gains on the translation of foreign bank accounts	(43)	(143)
Cash and cash equivalents at end of period	$ 34,536	$ 55,143

Basis of preparation

3 Months Ended

Sep. 30, 2019

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, 2019.

(i) Going concern

For the three months ended September 30, 2019, the Group incurred a total comprehensive loss after income tax of $6.2 million and had net cash outflows from operations of $15.6 million. As of September 30, 2019, the Group held total cash and cash equivalents of $34.5 million. As of September 30, 2019, the Group recognized funds receivable from revenues of $15.0 million pursuant to a strategic partnership with Grünenthal GmbH (“Grünenthal”), on October 1, 2019 the proceeds of which were received and recognized in cash and cash equivalents. On October 3, 2019 the Group raised gross proceeds of A$75.0 million (US$50.5 million) through the placement of 37.5 million new fully-paid Mesoblast ordinary shares.

Additionally, over the next 12 months the Group may receive up to an additional $30.0 million in milestone payments under the strategic partnership with Grünenthal and a further $35.0 million under the agreements with Hercules Capital, Inc. (“Hercules”) and NovaQuest Capital Management, L.L.C. (“NovaQuest”).

There is uncertainty related to the Group’s ability to access payments from the strategic partnership with Grünenthal or to draw down funds from Hercules and NovaQuest. The ability of the Group to continue as a going concern and meet its debts and commitments as they fall due are dependent upon meeting the milestones under our Grünenthal and NovaQuest agreements, and drawing on remaining funds under our Hercules agreement, or entering into additional strategic partnerships for our product candidates, or equity-based financings.

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 standards.

(ii) New and amended standards adopted by the Group

Leases

The Group adopted IFRS 16 Leases on July 1, 2019. Our principal accounting policy from July 1, 2019, are that leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. For principal accounting policies relating to the comparative year, refer to our annual report on Form 20-F for the year ended June 30, 2019. In accordance with the transition provisions in IFRS 16 the new rules have been adopted retrospectively with the cumulative effect of initially applying the new standard recognized on July 1, 2019. Comparatives have not been restated as permitted under the specific transition provisions in the standard.

On adoption of IFRS16, the Group recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate as of July 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on July 1, 2019 was 6.52%. A reconciliation between the operating lease commitments disclosed applying IAS 17 at June 30, 2019 and the lease liabilities recognized at July 1, 2019 is described in Note 13.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

•

Fixed payments (including in-substance fixed payments), less any lease incentives receivable

•

variable lease payment that are based on an index or a rate

•

amounts expected to be payable by the lessee under residual value guarantees

•

the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

•

payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the Group’s incremental borrowing rate.

Right-of-use assets are measured at cost comprising the following:

•

the amount of the initial measurement of lease liability

•

any lease payments made at or before the commencement date, less any lease incentives received

•

any initial direct costs, and

•

restoration costs.

Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture.

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, 2019 consolidated financial statements and related notes as filed with the Australian Securities Exchange and the Securities and Exchange Commission.

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

There were no new accounting standards and interpretations not yet adopted by the Group for the September 30, 2019 reporting period.

Significant changes in the current reporting period

3 Months Ended

Sep. 30, 2019

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 three months ended September 30, 2019:

•

On September 10, 2019, the Group announced that it had entered into a strategic partnership with Grünenthal, to develop and commercialize MPC-06-ID, a Phase 3 allogeneic product candidate for the treatment of chronic low back pain due to degenerative disc disease. Under the partnership, Grünenthal will have exclusive commercialization rights to MPC-06-ID for Europe and Latin America. The Group has recognized revenue and a trade receivable of $15.0 million in the current reporting period.

Loss before income tax

3 Months Ended

Sep. 30, 2019

Disclosure Of Loss Before Income Tax [Abstract]

Loss before income tax

3. Loss before income tax

		Three Months Ended September 30,
(in U.S. dollars, in thousands)	Note	2019			2018
Revenue
Commercialization Revenue			1,872			1,006
Milestone Revenue			15,000			10,500
Interest Revenue			176			131
Total Revenue			17,048			11,637

Clinical trial and research & development			(6,057	)		(13,374	)
Manufacturing production & development			(1,295	)		(3,650	)

Employee benefits
Salaries and employee benefits			(4,731	)		(4,926	)
Defined contribution superannuation expenses			(75	)		(90	)
Equity settled share-based payment transactions⁽¹⁾			(804	)		(818	)
Total Employee benefits			(5,610	)		(5,834	)

Depreciation and amortization of non-current assets
Plant and equipment depreciation			(455	)		(160	)
Intellectual property amortization			(394	)		(394	)
Total Depreciation and amortization of non-current assets			(849	)		(554	)

Other Management & administration expenses
Overheads & administration			(1,774	)		(1,995	)
Consultancy			(1,145	)		(849	)
Legal, patent and other professional fees			(3,226	)		(1,573	)
Intellectual property expenses (excluding the amount amortized above)			(594	)		(591	)
Total Other Management & administration expenses			(6,739	)		(5,008	)

Fair value remeasurement of contingent consideration
Remeasurement of contingent consideration	5(e)(iii)		(288	)		(622	)
Total Fair value remeasurement of contingent consideration			(288	)		(622	)

Other operating income and expenses
Remeasurement of borrowing arrangements			(401	)		—
Foreign exchange gains/(losses)			232			(151	)
Total Other operating income and expenses			(169	)		(151	)

Finance (costs)/gains
Remeasurement of borrowing arrangements			120			—
Interest expense			(3,577	)		(2,653	)
Total Finance costs			(3,457	)		(2,653	)

Total loss before income tax			(7,416	)		(20,209	)

(1)	Share-based payment transactions

For the three months ended September 30, 2019 and 2018, the share-based payment transactions have been reflected in the Consolidated Income Statement functional expense categories as follows:

	Three Months Ended September 30,
(in U.S. dollars)	2019		2018
Research and development		319,681		527,855
Manufacturing and commercialization		53,579		64,607
Management and administration		430,538		225,096
Equity settled share-based payment transactions		803,798		817,558

Revenue recognition

Grünenthal arrangement

In September 2019, the Group entered into a strategic partnership with Grünenthal for the development and commercialization in Europe and Latin America of the Group’s allogeneic mesenchymal precursor cell (“MPC”) product, MPC-06-ID, receiving exclusive rights to the Phase 3 allogeneic product candidate for the treatment of low back pain due to degenerative disc disease.

The Group is entitled to receive a non-refundable upfront payment of $15.0 million on signing of the contract with Grünenthal, and this payment was received on October 1, 2019. The Group is eligible to receive up to $150.0 million in upfront, clinical, manufacturing, regulatory and reimbursement approval related milestone payments prior to product launch. The Group is further entitled to receive milestones payments based on regulatory and cumulative product sales milestones, as well as tiered double-digit royalties on product sales.

The strategic partnership with Grünenthal includes a license of IP and the provision of development services. Under IFRS 15 Revenue from contracts with customers, the Group has identified three distinct performance obligations in the strategic partnership with Grünenthal. The three performance obligations identified are the right of use license of IP, research & development and chemistry, manufacturing and controls (“R&D and CMC”) services and other development services. The license of IP was considered distinct from the development services as it is capable of being granted separately and the development services do not significantly modify or customize the license nor are the license and development services significantly interrelated or interdependent. The Group also evaluated the promises in the development services and determined the R&D and CMC services were distinct from the other development services as they are not significantly interrelated or interdependent.

The standalone selling price for each performance obligation is not directly observable, so the Group has estimated the standalone selling price through the most appropriate method to ensure the estimate represents the price the Group would charge for the goods or services if they were sold separately. The Group considered the application and results of a combination of methods and utilized the cost plus a margin approach as the primary method. For R&D and CMC services, the Group estimated the standalone selling price to be $85.0 million. For the other development services the Group estimated the standalone selling price to be $10.0 million. Significant judgement was applied in determining the standalone selling price and the variable consideration that was allocated to each performance obligation. Based on this analysis, the $15.0 million upfront payment was allocated to the license of IP performance obligation.

The Group evaluated the constraint over variable consideration and determined only the upfront payment of $15.0 million can be included in the transaction price as at September 30, 2019. All of the milestone payments were considered constrained as at September 30, 2019. As part of this evaluation, the Group considered a variety of factors, including whether the receipt of the milestone payments is outside of the Group’s control or contingent on the outcome of clinical trials and the impact of certain repayment clauses. The Group will continue to evaluate the constraint over variable consideration in future periods. Additionally, the Group applies the sales-based and usage-based royalty exception for licenses of intellectual property and therefore will recognize royalties and sales-based milestone payments as revenue when the subsequent sale or usage occurs.

Upon signing of this strategic partnership on September 9, 2019, the Group recognized $15.0 million in revenue for the right of use license of IP as this performance obligation was considered completely satisfied at this date. In future periods, milestone payments from Grünenthal may result in deferred consideration as revenue recognition of R&D and CMC services and other development services will be dependent upon the assessment of the constraint over variable consideration as well as the percentage of progress towards meeting the development service performance obligations over time.

For the comparative period, being the three months ended September 30, 2018, no milestone revenue was recognized in relation to this strategic partnership with Grünenthal.

Tasly arrangement

In July 2018, the Group entered into a strategic alliance with Tasly Pharmaceutical Group (“Tasly”) for the development, manufacture and commercialization in China of the Group’s allogeneic mesenchymal precursor cell (“MPC”) products, MPC-150-IM and MPC-25-IC. Tasly received all exclusive rights for MPC-150-IM and MPC-25-IC in China and Tasly will fund all development, manufacturing and commercialization activities in China.

The Group received a $20.0 million up-front technology access fee from Tasly upon closing of this strategic alliance in October 2018. The Group is also entitled to receive $25.0 million on product regulatory approvals in China, double-digit escalating royalties on net product sales and up to six escalating milestone payments when the product candidates reach certain sales thresholds in China.

Under IFRS 15, upon completion of this strategic alliance 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.

For the three months ended September 30, 2019, no milestone revenue was recognized in relation to this strategic alliance with Tasly.

TiGenix arrangement

In December 2017, the Group entered into a patent license agreement with TiGenix NV (“TiGenix”), now a wholly owned subsidiary of Takeda Pharmaceutical Company Limited (“Takeda”), which granted Takeda exclusive access to certain of our patents to support global commercialization of the adipose-derived mesenchymal stem cell (“MSC") product, Alofisel® a registered trademark of TiGenix, previously known as Cx601, 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 license 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 €5.0 million ($5.9 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®.

No milestone revenue was recognized in relation to the patent license agreement with Takeda in the three months ended September 30, 2019 and 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 agreement is limited to the amount of cash received or for which the Group are entitled, as JCR has the right to terminate the agreement at any time.

Under the JCR Agreement, JCR is responsible for all development and manufacturing costs including sales and marketing expenses. Under the JCR Agreement, JCR has the right to develop our MSCs in two fields for the Japanese market: exclusive in conjunction with the treatment of hematological malignancies by the use of hematopoietic stem cells derived from peripheral blood, cord blood or bone marrow, or the First JCR Field; and non-exclusive for developing assays that use liver cells for non-clinical drug screening and evaluation, or the Second JCR Field. With respect to the First JCR Field, the Group are entitled to payments when JCR reaches certain commercial milestones and to escalating double-digit royalties. These royalties are subject to possible renegotiation downward in the event of competition from non-infringing products in Japan. With respect to the Second JCR Field, the Group are entitled to a double digit profit share. 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® Hs. Inj. (“TEMCELL”), a registered trademark of JCR 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 three months ended September 30, 2019, the Group recognized $1.9 million in commercialization revenue relating to royalty income earned on sales of TEMCELL in Japan by our licensee JCR, compared with $1.0 million for the three months ended September 30, 2018. These amounts were recorded in revenue as there are no further performance obligations required in regards to these items.

In the three months ended September 30, 2019 and 2018, the Group recognized $Nil and $0.5 million respectively, in milestone revenue upon our licensee, JCR, reaching cumulative net sales milestones for sales of TEMCELL in Japan. This amount was recorded in revenue as there are no further performance obligations required in regards to these items.

Income tax benefit/(expense)

3 Months Ended

Sep. 30, 2019

Major Components Of Tax Expense Income [Abstract]

Income tax benefit/(expense)

4. Income tax benefit/(expense)

		Three Months Ended September 30,
	(in U.S. dollars, in thousands)	2019			2018
(a)	Income tax expense
	Current tax
	Current tax		—			—
	Total current tax expense		—			—

	Deferred tax
	(Increase)/decrease in deferred tax assets		(2,029	)		(686	)
	(Decrease)/increase in deferred tax liabilities		97			(25	)
	Total deferred tax expense/(benefit)		(1,932	)		(711	)
	Income tax expense/(benefit)		(1,932	)		(711	)

Deferred tax assets have been brought to account only to the extent that it is foreseeable that they are recoverable against future tax liabilities.

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilized. Deferred tax assets are offset against taxable temporary differences (deferred tax liabilities) when the deferred tax balances relate to the same tax jurisdiction in accordance with our accounting policy.

Deferred taxes are measured at the rate in which they are expected to settle within the respective jurisdictions, which can change based on factors such as new legislation or timing of utilization and reversal of associated assets and liabilities.

		As of		As of
	(in U.S. dollars, in thousands)	September 30, 2019		June 30, 2019
(b)	Deferred tax assets not brought to account
	Unused tax losses
	Potential tax benefit at local tax rates		47,545		51,807
	Other temporary differences
	Potential tax benefit at local tax rates		3,510		3,130
	Other tax credits
	Potential tax benefit at local tax rates		3,220		3,220
			54,275		58,157

As of September 30, 2019 and June 30, 2019, the Group has deferred tax assets not brought to account of $54.3 million and $58.2 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

3 Months Ended

Sep. 30, 2019

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 September 30, 2019
Cash & cash equivalents	5(a)		—		—		34,536		34,536
Trade & other receivables	5(b)		—		—		17,857		17,857
Financial assets at fair value through other comprehensive income	5(e)		1,952		—		—		1,952
Other non-current assets			—		—		3,299		3,299
			1,952		—		55,692		57,644
As of June 30, 2019
Cash & cash equivalents	5(a)		—		—		50,426		50,426
Trade & other receivables	5(b)		—		—		4,060		4,060
Financial assets at fair value through other comprehensive income	5(e)		2,317		—		—		2,317
Other non-current assets			—		—		3,324		3,324
			2,317		—		57,810		60,127

(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 September 30, 2019
Trade and other payables	5(c)		—		—		12,740		12,740
Borrowings	5(d)		—		—		83,732		83,732
Lease liabilities	5(f)		—		—		5,440		5,440
Contingent considerations	5(e)(iii)		—		47,528		—		47,528
			—		47,528		101,912		149,440
As of June 30, 2019
Trade and other payables	5(c)		—		—		13,060		13,060
Borrowings	5(d)		—		—		81,286		81,286
Contingent considerations	5(e)(iii)		—		47,534		—		47,534
			—		47,534		94,346		141,880

(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 September 30, 2019		As of June 30, 2019
Cash at bank		34,131		50,005
Deposits at call⁽¹⁾		405		421
		34,536		50,426

(1)	As of September 30, 2019 and June 30, 2019, 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 September 30, 2019		As of June 30, 2019
Trade debtors		1,872		1,739
Funds receivable from Development and Commercialization Agreement⁽¹⁾		15,000		—
Income tax and tax incentives recoverable⁽²⁾		—		1,511
Foreign withholding tax recoverable		471		471
Security deposit		250		250
Sundry debtors		45		2
Other recoverable taxes (Goods and services tax and value-added tax)		215		86
Interest receivables		4		1
Trade and other receivables		17,857		4,060

(1)

On September 9, 2019, the Group entered into a strategic partnership with Grünenthal, to develop and commercialize its allogeneic product candidate MPC-06-ID for the treatment of chronic low back pain due to degenerative disc disease. Under the partnership, Grünenthal will have exclusive commercialization rights to MPC-06-ID for Europe and Latin America. The contractual terms of the agreement pertaining to the receipt of funds that became payable on signing, were binding and therefore the Group recognized a receivable of $15.0 million at September 30, 2019. On October 1, 2019 the net proceeds of $15.0 million were received and recognized in cash and cash equivalents.

(2)

The Group’s research and development activities are not eligible 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 three months ended September 30, 2019, the Group has recognized $Nil income. The $1.5 million recognized as a receivable at June 30, 2019, related to the July 1, 2017 to June 30, 2018 financial period, and was received in July 2019.

(ii) Prepayments

(in U.S. dollars, in thousands)	As of September 30, 2019		As of June 30, 2019
Clinical trial research and development expenditure		6,516		6,042
Prepaid insurance and subscriptions		432		1,095
Other		1,252		899
Prepayments		8,200		8,036

(iii) Classification as trade and other receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 30 to 60 days and therefore are all classified as current. Trade receivables are recognized initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognized at fair value. The group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method. Interest receivables are amounts due at maturity of term deposits. Income tax and tax incentives recoverable relates to the Group’s claim for the Australian Government tax incentive.

(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.

a.	Trade and other payables


(in U.S. dollars, in thousands)	As of September 30, 2019		As of June 30, 2019
Trade payables and other payables		12,740		13,060
Trade and other payables		12,740		13,060

The carrying amounts of trade and other payables are assumed to be the same as their fair values, due to their short-term nature.

b.	Borrowings

(in U.S. dollars, in thousands)	As of September 30, 2019			As of June 30, 2019
Current
Secured liabilities:
Borrowing arrangements		18,851			14,007
		18,851			14,007

Non-current
Secured liabilities:
Borrowing arrangements		61,549			65,601
Less: transaction costs		(6,738	)		(6,738	)
Amortization of carrying amount, net of payments made		10,070			8,416
		64,881			67,279

(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 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 due to commence in October 2019, as the milestone to defer principal repayments was not met before September 30, 2019. As a result, we have recognized $18.4 million of the borrowings as a current liability. Subsequent to September 30, 2019, as disclosed in Note 11, the Group satisfied the milestones to defer principal repayments to April 2020. Principal repayments can be deferred to October 2020 if further milestones are satisfied. 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%. At June 30, 2019, in line with increases in the U.S prime rate, the interest rate was 10.45%. On August 1, 2019 and September 19, 2019, in line with the decreases in the U.S. prime rate, the interest rate on the loan decreased to 10.20% and 9.95%, respectively.

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. A $0.4 million loan administration fee is payable annually in June and is recognized as a current liability. 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 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 three months ended September 30, 2019, $0.4 million loss has been recognized by the Group in the Income Statement as remeasurement of borrowing arrangements within other operating income and expenses.

In the three months ended September 30, 2019, the Group recognized a $0.1 million gain in the Income Statement as remeasurement of borrowing arrangements within finance gains. This relates to the adjustment of the carrying amount of our financial liability to reflect the revised estimated future cash flows from our existing credit facility with NovaQuest.

The carrying amount of the loan and security agreement with NovaQuest is subordinated to the Group’s floating rate loan with the senior creditor, Hercules.

(ii) Compliance with loan covenants

Our loan facilities with Hercules and NovaQuest contain a number of covenants that impose operating restrictions on us, which may restrict our ability to respond to changes in our business or take specified actions. In addition, under our loan and security agreement with Hercules we are obliged to maintain certain levels of cash in the United States, and a minimum unrestricted cash balance across the Group.

The Group has complied with the financial and other restrictive covenants of its borrowing facilities during the three months ended September 30, 2019 and during the year ended June 30, 2019.

(iii) Net debt reconciliation

(in U.S. dollars, in thousands)	As of September 30, 2019			As of June 30, 2019
Cash and cash equivalents		34,536			50,426
Borrowings Repayable within one year		(20,375	)		(14,007	)
Borrowings Repayable after one year		(68,797	)		(67,279	)
Net Debt⁽¹⁾		(54,636	)		(30,860	)

Cash and cash equivalents		34,536			50,426
Gross debt - fixed interest rates		(40,249	)		(33,060	)
Gross debt - variable interest rates		(48,923	)		(48,226	)
Net Debt⁽¹⁾		(54,636	)		(30,860	)

(1)	Net debt amount includes leases and borrowing arrangements.

		Liabilities from financing activities									Other assets
(in U.S. dollars, in thousands)	Notes	Borrowings			Leases			Sub-total			Cash and cash equivalents			Total
Net Debt as at 30 June 2019			(81,286	)		—			(81,286	)		50,426			(30,860	)
Recognized on adoption of IFRS 16	13		—			(5,775	)		(5,775	)		—			(5,775	)
			(81,286	)		(5,775	)		(87,061	)		50,426			(36,635	)
Cash Flows			—			335			335			(15,847	)		(15,512	)
Remeasurement of borrowing arrangements			(281	)		—			(281	)		—			(281	)
Other Changes⁽¹⁾			(2,165	)		—			(2,165	)		—			(2,165	)
Foreign exchange adjustments			—			—			—			(43	)		(43	)
Net Debt			(83,732	)		(5,440	)		(89,172	)		34,536			(54,636	)

(1)	Other changes include non-cash movements including accrued interest expense which will be presented as operating cash flows in the statement of cash flows when paid.

(iv) Fair values of borrowing arrangements

The carrying amount of the borrowings at amortized cost in accordance with our accounting policy is a reasonable approximation of fair value.

c.	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 September 30, 2019 and June 30, 2019 on a recurring basis, categorized by level according to the significance of the inputs used in making the measurements:

As of June 30, 2019
(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			—		—		2,317		2,317
Total Financial Assets			—		—		2,317		2,317

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)		—		—		47,534		47,534
Total Financial Liabilities			—		—		47,534		47,534

As of September 30, 2019
(in U.S. dollars, in thousands)	Notes	Level 1		Level 2		Level 3		Total
Financial Assets
Financial assets at fair value through other comprehensive income:
Equity securities - biotech sector			—		—		1,952		1,952
Total Financial Assets			—		—		1,952		1,952

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)		—		—		47,528		47,528
Total Financial Liabilities			—		—		47,528		47,528

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 three months ended September 30, 2019 and the year ended June 30, 2019:

(in U.S. dollars, in thousands)	Contingent consideration provision
Opening balance - July 1, 2018		42,070
Amount used during the year		(800	)
Charged/(credited) to consolidated income statement:
Remeasurement⁽¹⁾		6,264
Closing balance - June 30, 2019		47,534

Opening balance - July 1, 2019		47,534
Amount used during the period		(294	)
Charged/(credited) to consolidated income statement:
Remeasurement⁽²⁾		288
Closing balance - September 30, 2019		47,528

(1)

In the year ended June 30, 2019 a loss of $6.3 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 probability of success, market penetration, developmental timelines, product pricing and the increase in valuation as the time period shortens between the valuation date and the potential settlement dates of contingent consideration.

(2)

In the three months ended September 30, 2019 a loss of $0.3 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 product pricing, 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

September 30,

Fair value as of

June 30,

Valuation

Unobservable

Three Months Ended September 30,

Year Ended

June 30,

Relationship of

unobservable inputs to

Description

2019

technique

inputs⁽¹⁾

2019

fair value

Contingent consideration provision

47,528

47,534

Discounted cash flows

Risk adjusted

discount rate

11%-13%

(12.5%)

11%-13%

(12.5%)

Three months ended September 30, 2019: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%.

Year ended June 30, 2019: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%.

Expected unit

revenues

n/a

Three months ended September 30, 2019: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%.

Year ended June 30, 2019: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%.

Expected sales volumes

n/a

Three months ended September 30, 2019: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 4%.

Year ended June 30, 2019: 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 three months ended September 30, 2019 and the year ended June 30, 2019, 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 September 30, 2019		As of June 30, 2019
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets		28,247		28,005
Fair value of royalty payments from commercialization of the intellectual property acquired		19,281		19,529
		47,528		47,534

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.

d.	Lease liabilities

(in U.S. dollars, in thousands)	As of September 30, 2019
Current		1,524
Non-current		3,916
Lease liabilities included in the statement of financial position		5,440

The lease liability is measured at the present value of the fixed and variable lease payments net of cash lease incentives that are not paid at the balance date. Lease payments are apportioned between the finance charges and reduction of the lease liability using the incremental borrowing rate to achieve a constant rate of interest on the remaining balance of the liability. Lease payments for buildings exclude service fees for cleaning and other costs.

Non-financial Assets and Liabilities

3 Months Ended

Sep. 30, 2019

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, 2019
Opening net book amount		134,453		1,770			427,779			20,604			584,606
Additions		—		100			—			—			100
Exchange differences		—		(4	)		—			1			(3	)
Amortization charge		—		(122	)		—			(1,455	)		(1,577	)
Closing net book amount		134,453		1,744			427,779			19,150			583,126

As of June 30, 2019
Cost		134,453		2,822			489,698			23,999			650,972
Accumulated amortization		—		(1,078	)		—			(4,849	)		(5,927	)
Accumulated impairment		—		—			(61,919	)		—			(61,919	)
Net book amount		134,453		1,744			427,779			19,150			583,126

Three Months Ended September 30, 2019
Opening net book amount		134,453		1,744			427,779			19,150			583,126
Exchange differences		—		(1	)		—			—			(1	)
Amortization charge		—		(31	)		—			(363	)		(394	)
Closing net book amount		134,453		1,712			427,779			18,787			582,731

As of September 30, 2019
Cost		134,453		2,803			489,698			23,999			650,953
Accumulated amortization		—		(1,091	)		—			(5,212	)		(6,303	)
Accumulated impairment		—		—			(61,919	)		—			(61,919	)
Net book amount		134,453		1,712			427,779			18,787			582,731

c.	Deferred tax balances

(i) Deferred tax balances

(in U.S. dollars, in thousands)	As of September 30, 2019		As of June 30, 2019
Deferred tax assets
The balance comprises temporary differences attributable to:
Tax losses		63,162		61,742
Other temporary differences		4,292		3,687
Total deferred tax assets		67,454		65,429

Deferred tax liabilities
The balance comprises temporary differences attributable to:
Intangible assets		76,649		76,553
Total deferred tax liabilities		76,649		76,553
Net deferred tax liabilities		9,195		11,124

Deferred tax assets expected to be settled within 12 months		—		—
Deferred tax assets expected to be settled after 12 months		67,454		65,429

Deferred tax liabilities expected to be settled within 12 months		99		99
Deferred tax liabilities expected to be settled after 12 months		76,550		76,454

(ii) Movements

(in U.S. dollars, in thousands)	Tax losses⁽¹⁾ (DTA)			Other temporary differences⁽¹⁾ (DTA)			Intangible assets (DTL)			Total (DTL)
As of June 30, 2018		(55,904	)		(669	)		76,652			20,079
Charged/(credited) to:
- profit or loss		(5,838	)		(3,018	)		(99	)		(8,955	)
As of June 30, 2019		(61,742	)		(3,687	)		76,553			11,124
Charged/(credited) to:
- profit or loss		(1,420	)		(605	)		96			(1,929	)
As of September 30, 2019		(63,162	)		(4,292	)		76,649			9,195

(1)	Deferred tax assets are netted against deferred tax liabilities

a.	Deferred consideration

(in U.S. dollars, in thousands)	As of September 30, 2019		As of June 30, 2019
Opening balance		10,000		—
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		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

3 Months Ended

Sep. 30, 2019

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 September 30, 2019		As of June 30, 2019
Cash at bank		34,131		50,005
Deposits at call		405		421
		34,536		50,426

(in U.S. dollars, in thousands)
(b) Reconciliation of net cash flows used in operations with loss after income tax	Three months ended September 30, 2019			Three months ended September 30, 2018
Loss for the period		(5,484	)		(19,498	)
Add/(deduct) net loss for non-cash items as follows:
Depreciation and amortization		849			554
Foreign exchange (gains)/losses		(232	)		10
Finance costs		2,165			1,762
Remeasurement of borrowing arrangements		281			—
Remeasurement of contingent consideration		288			622
Equity settled share-based payment		804			818
Deferred tax benefit		(1,932	)		(711	)
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables		(15,378	)		(19,616	)
(Increase)/decrease in prepayments		(164	)		(251	)
Decrease/(increase) in tax assets		1,499			1,654
Increase/(decrease) in trade creditors and accruals		(300	)		2,186
Increase/(decrease) in provisions		2,046			2,926
Increase/(decrease) in deferred consideration		—			10,000
Net cash outflows used in operations		(15,558	)		(19,544	)

Issued capital

3 Months Ended

Sep. 30, 2019

Disclosure Of Classes Of Share Capital [Abstract]

Issued capital

8. Issued capital

	As of September 30,				As of September 30,
	2019		2018		2019		2018
	Shares No.				(U.S. dollars, in thousands)
Opening balance		498,626,208		482,639,654		910,405		889,481
Issues of ordinary shares during the period
Exercise of share options⁽¹⁾		553,226		262,000		299		231
Transaction costs arising on share issue		—		—		—		(19	)
		553,226		262,000		299		212
Share options reserve transferred to equity on exercise of options		—		—		238		287
Ending balance		499,179,434		482,901,654		910,942		889,980

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

Financial Risk Management

3 Months Ended

Sep. 30, 2019

Disclosure Of Financial Risk Management [Abstract]

Financial Risk Management

9. Financial risk management

This note explains the Group’s exposure to financial risks and how these risks could affect the Group’s future financial performance. Current year profit and loss information has been included where relevant to add further context.

Risk	Exposure arising from	Measurement	Management
Market risk – currency risk	Future commercial transactions Recognized financial assets and liabilities not denominated in the functional currency of each entity within the Group	Cash flow forecasting Sensitivity analysis	The future cash flows of each currency are forecast and the quantum of cash reserves held for each currency are managed in line with future forecasted requirements. Cross currency swaps are undertaken as required.

Market risk – interest rate risk	Long-term borrowings at floating rates	Sensitivity analysis	The facility can be refinanced and/or repaid. Interest rate swaps can be entered into to convert the floating interest rate to a fixed interest rate as required.
	Term deposits at fixed rates	Sensitivity analysis	Vary length of term deposits, utilize interest bearing accounts and periodically review interest rates available to ensure we earn interest at market rates.

Market risk – price risk	Long-term borrowings	Sensitivity analysis	Forecasts of net sales of the product underlying the NovaQuest borrowing arrangement are updated on a quarterly basis to evaluate the impact on the carrying amount of the financial liability.

Credit risk	Cash and cash equivalents, and trade and other receivables	Aging analysis Credit ratings	Only transact with the best risk rated banks available in each region giving consideration to the products required.

Liquidity risk	Cash and cash equivalents Borrowings	Rolling cash flow forecasts	Future cash flows requirements are forecasted and capital raising strategies are planned to ensure sufficient cash balances are maintained to meet the Group’s future commitments

a.	Market risk

(i) Currency risk

The Group has foreign currency amounts owing primarily in the Group’s Australian based entity, whose functional currency is the A$ relating to clinical, regulatory and overhead activities. The Group also has foreign currency amounts owing in the Group’s Swiss and Singapore based entities, whose functional currencies are the US$. The Group also has foreign currency amounts owing in various other non-US$ currencies in A$ 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 three months ended September 30, 2019.

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

	As of					As of
	September 30, 2019					June 30, 2019
(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		18,451		22	%		13,607		17	%
Non-current borrowings
Variable rate borrowings - Hercules		30,472		36	%		34,619		43	%
		48,923		58	%		48,226		60	%

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 September 30, 2019 and June 30, 2019. The effect on profit is shown if interest rates change by 5%, in either direction, is as follows:

	As of									As of
	September 30, 2019									June 30, 2019
(in U.S. dollars, in thousands, except percent data)	Low			High			USD			Low			High			USD
Borrowings - USD		9.95	%		9.95	%	48,923⁽¹⁾				10.45	%		10.45	%	48,226⁽¹⁾
Rate increase by 5%		10.45	%		10.45	%		249			10.97	%		10.97	%		261
Rate decrease by 5%		9.45	%		9.45	%		(249	)		9.93	%		9.93	%		(261	)

(1)	Effect on profit/loss of interest rate changes is based on the loan principal amount of $50.0 million as of September 30, 2019, and loan principal amount of $50.0 million as of June 30, 2019.

The Group is also exposed to interest rate movements which impacts interest income earned on its deposits and at call accounts. The interest income derived from these balances can fluctuate due to interest rate changes. This interest rate risk is managed by periodically reviewing interest rates available for suitable interest bearing accounts to ensure we earn interest at market rates. The Group ensures that sufficient funds are available, in at call accounts, to meet the working capital requirements of the Group.

The deposits held which derive interest revenue are described in the table below, together with the maximum and minimum interest rates being earned as of September 30, 2019 and June 30, 2019. The effect on profit is shown if interest rates change by 10%, in either direction, is as follows:

	As of									As of
	September 30, 2019									June 30, 2019
(in U.S. dollars, in thousands, except percent data)	Low			High			USD			Low			High			USD
Funds invested - USD		1.67	%		1.67	%		27,935			1.76	%		1.76	%		45,051
Rate increase by 10%		1.84	%		1.84	%		47			1.94	%		1.94	%		81
Rate decrease by 10%		1.50	%		1.50	%		(47	)		1.58	%		1.58	%		(81	)


AUD	Low			High			AUD			Low			High			AUD
Funds invested - AUD		2.23	%		2.23	%		600			2.23	%		2.23	%		600
Rate increase by 10%		2.45	%		2.45	%		1			2.45	%		2.45	%		1
Rate decrease by 10%		2.01	%		2.01	%		(1	)		2.01	%		2.01	%		(1	)

(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
	September 30, 2019					June 30, 2019
(in U.S. dollars, in thousands, except percent data)	Total		% of total loans			Total		% of total loans
Financial liabilities
Current borrowings
Borrowings - NovaQuest		400		0	%		400		0	%
Non-current borrowings
Borrowings - NovaQuest		34,409		42	%		32,660		40	%
		34,809		42	%		33,060		40	%

As at September 30, 2019, 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 $4.6 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 $2.8 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 September 30, 2019 and June 30, 2019 are non-interest bearing and mature within 6 months. The total contractual cash flows associated with these liabilities equate to the carrying amount disclosed within the financial statements.

As of September 30, 2019 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⁾		(23,073	)		(29,761	)		(59,066	)		(32,821	)		(144,721	)		(83,732	)
Trade payables		(12,740	)		—			—			—			(12,740	)		(12,740	)
Lease liabilities		(1,875	)		(1,540	)		(2,121	)		(1,039	)		(6,575	)		(5,440	)
		(37,688	)		(31,301	)		(61,187	)		(33,860	)		(164,036	)		(101,912	)

(1)	Contractual cash flows include payments of principal, interest and other charges. Interest is calculated based on debt held at September 30, 2019 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

3 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

(Losses)/earnings per share

10. (Losses)/earnings per share

	Three Months Ended
	September 30, 2019			September 30, 2018
Losses per share
(in cents)
(a) Basic (losses) per share
From continuing operations attributable to the ordinary equity holders of the company		(1.10	)		(4.07	)
Total basic (losses) per share attributable to the ordinary equity holders of the company		(1.10	)		(4.07	)

(b) Diluted (losses) per share
From continuing operations attributable to the ordinary equity holders of the company		(1.10	)		(4.07	)
Total basic (losses) per share attributable to the ordinary equity holders of the company		(1.10	)		(4.07	)

(c) Reconciliation of (losses) used in calculating (losses) per share
(in U.S. dollars, in thousands)
Basic (losses) per share
(Losses) attributable to the ordinary equity holders of the company used in calculating basic (losses) per share:
From continuing operations		(5,484	)		(19,498	)

Diluted (losses) per share
(Losses) from continuing operations attributable to the ordinary equity holders of the company:
Used in calculating basic (losses) per share		(5,484	)		(19,498	)
(Losses) attributable to the ordinary equity holders of the company used in calculating diluted losses per share		(5,484	)		(19,498	)


	Three Months Ended
	September 30, 2019 (in shares)			September 30, 2018 (in shares)
Weighted average number of ordinary shares used as the denominator in calculating basic losses per share		499,301,409			479,183,393
Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted losses per share		499,301,409			479,183,393

Options granted to employees are considered to be potential ordinary shares. These securities have been excluded from the determination of basic losses per share in the three months ended September 30, 2019 and 2018. Shares that may be paid as contingent consideration have also been excluded from basic losses per share. They have been excluded from the calculation of diluted losses per share because they are anti-dilutive for the three months ended September 30, 2019 and 2018.

Events occurring after the reporting period

3 Months Ended

Sep. 30, 2019

Disclosure Of Nonadjusting Events After Reporting Period [Abstract]

Events occurring after the reporting period

11. Events occurring after the reporting period

On October 3, 2019, the Group announced completion of a A$75.0 million (US$50.5 million) capital raise through the placement of 37.5 million new fully-paid ordinary shares at a price of A$2.00 per share to existing and new institutional investors.

On October 4, 2019, the Group satisfied the milestones required to defer the commencement of principal repayments of the Hercules borrowings to April 2020. Principal repayments can be further deferred to October 2020 if further milestones are met. Given the milestones were satisfied after the reporting period, the principal repayments that were to be due in October 2019 to March 2020 are classified as current as at the reporting date.

On October 17, 2019, the Group announced that it had entered into manufacturing service agreement with Lonza Bioscience Singapore Pte. Ltd. for the supply of commercial product for the potential approval and launch of remestemcel-L for the treatment of pediatric acute graft versus host disease in the US market. The agreement contains a minimum financial commitment of $15.1 million.

Segment information

3 Months Ended

Sep. 30, 2019

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.

Change in accounting policies

3 Months Ended

Sep. 30, 2019

Disclosure Of Initial Application Of Standards Or Interpretations [Abstract]

Change in accounting policies

13. Change in accounting policies

(in U.S. dollars, in thousands)	2019
Operating lease commitments disclosed as at June 30, 2019		7,460
Discounted using the group's average incremental borrowing rate of 6.52%		6,146
(Less): Short term leases recognized on a straight line basis as expense		(371	)
Lease liability recognized as at July 1, 2019		5,775

The associated right-of-use assets for property leases were measured on a retrospective basis as if the new rules had always been applied. Property, plant and equipment increased by $4.7 million and lease liabilities increased by $5.6 million on July 1, 2019. The net impact on retained earnings on July 1, 2019 was $0.9m.

In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard:

•

the use of a single discount rate to a portfolio of leases with reasonably similar characteristics

•

the accounting for operating leases with a remaining lease term of less than 12 months as at July 1, 2019 as short term leases

•

the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application

•

the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the group relied on its assessment made applying IAS 17 and Interpretation 4 Determining whether an Arrangement contains a Lease.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Sep. 30, 2019

Basis Of Preparation [Abstract]

Basis of Preparation

1. Basis of preparation

(i) Going concern

(ii) New and amended standards adopted by the Group

Leases

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

•

Fixed payments (including in-substance fixed payments), less any lease incentives receivable

•

variable lease payment that are based on an index or a rate

•

amounts expected to be payable by the lessee under residual value guarantees

•

the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

•

payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the Group’s incremental borrowing rate.

Right-of-use assets are measured at cost comprising the following:

•

the amount of the initial measurement of lease liability

•

any lease payments made at or before the commencement date, less any lease incentives received

•

any initial direct costs, and

•

restoration costs.

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

There were no new accounting standards and interpretations not yet adopted by the Group for the September 30, 2019 reporting period.

Loss Before Income Tax (Tables)

3 Months Ended

Sep. 30, 2019

Disclosure Of Loss Before Income Tax [Abstract]

Summary of Loss Before Income Tax

		Three Months Ended September 30,
(in U.S. dollars, in thousands)	Note	2019			2018
Revenue
Commercialization Revenue			1,872			1,006
Milestone Revenue			15,000			10,500
Interest Revenue			176			131
Total Revenue			17,048			11,637

Clinical trial and research & development			(6,057	)		(13,374	)
Manufacturing production & development			(1,295	)		(3,650	)

Employee benefits
Salaries and employee benefits			(4,731	)		(4,926	)
Defined contribution superannuation expenses			(75	)		(90	)
Equity settled share-based payment transactions⁽¹⁾			(804	)		(818	)
Total Employee benefits			(5,610	)		(5,834	)

Depreciation and amortization of non-current assets
Plant and equipment depreciation			(455	)		(160	)
Intellectual property amortization			(394	)		(394	)
Total Depreciation and amortization of non-current assets			(849	)		(554	)

Other Management & administration expenses
Overheads & administration			(1,774	)		(1,995	)
Consultancy			(1,145	)		(849	)
Legal, patent and other professional fees			(3,226	)		(1,573	)
Intellectual property expenses (excluding the amount amortized above)			(594	)		(591	)
Total Other Management & administration expenses			(6,739	)		(5,008	)

Fair value remeasurement of contingent consideration
Remeasurement of contingent consideration	5(e)(iii)		(288	)		(622	)
Total Fair value remeasurement of contingent consideration			(288	)		(622	)

Other operating income and expenses
Remeasurement of borrowing arrangements			(401	)		—
Foreign exchange gains/(losses)			232			(151	)
Total Other operating income and expenses			(169	)		(151	)

Finance (costs)/gains
Remeasurement of borrowing arrangements			120			—
Interest expense			(3,577	)		(2,653	)
Total Finance costs			(3,457	)		(2,653	)

Total loss before income tax			(7,416	)		(20,209	)

(1)	Share-based payment transactions

For the three months ended September 30, 2019 and 2018, the share-based payment transactions have been reflected in the Consolidated Income Statement functional expense categories as follows:

	Three Months Ended September 30,
(in U.S. dollars)	2019		2018
Research and development		319,681		527,855
Manufacturing and commercialization		53,579		64,607
Management and administration		430,538		225,096
Equity settled share-based payment transactions		803,798		817,558

Income Tax Benefit/(Expense) (Tables)

3 Months Ended

Sep. 30, 2019

Major Components Of Tax Expense Income [Abstract]

Summary of Income tax benefit/(expense)

		Three Months Ended September 30,
	(in U.S. dollars, in thousands)	2019			2018
(a)	Income tax expense
	Current tax
	Current tax		—			—
	Total current tax expense		—			—

	Deferred tax
	(Increase)/decrease in deferred tax assets		(2,029	)		(686	)
	(Decrease)/increase in deferred tax liabilities		97			(25	)
	Total deferred tax expense/(benefit)		(1,932	)		(711	)
	Income tax expense/(benefit)		(1,932	)		(711	)

Summary of Deferred Tax Assets Not Brought to Account

		As of		As of
	(in U.S. dollars, in thousands)	September 30, 2019		June 30, 2019
(b)	Deferred tax assets not brought to account
	Unused tax losses
	Potential tax benefit at local tax rates		47,545		51,807
	Other temporary differences
	Potential tax benefit at local tax rates		3,510		3,130
	Other tax credits
	Potential tax benefit at local tax rates		3,220		3,220
			54,275		58,157

Financial assets and liabilities (Tables)

3 Months Ended

Sep. 30, 2019

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 September 30, 2019
Cash & cash equivalents	5(a)		—		—		34,536		34,536
Trade & other receivables	5(b)		—		—		17,857		17,857
Financial assets at fair value through other comprehensive income	5(e)		1,952		—		—		1,952
Other non-current assets			—		—		3,299		3,299
			1,952		—		55,692		57,644
As of June 30, 2019
Cash & cash equivalents	5(a)		—		—		50,426		50,426
Trade & other receivables	5(b)		—		—		4,060		4,060
Financial assets at fair value through other comprehensive income	5(e)		2,317		—		—		2,317
Other non-current assets			—		—		3,324		3,324
			2,317		—		57,810		60,127

(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 September 30, 2019
Trade and other payables	5(c)		—		—		12,740		12,740
Borrowings	5(d)		—		—		83,732		83,732
Lease liabilities	5(f)		—		—		5,440		5,440
Contingent considerations	5(e)(iii)		—		47,528		—		47,528
			—		47,528		101,912		149,440
As of June 30, 2019
Trade and other payables	5(c)		—		—		13,060		13,060
Borrowings	5(d)		—		—		81,286		81,286
Contingent considerations	5(e)(iii)		—		47,534		—		47,534
			—		47,534		94,346		141,880

(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 September 30, 2019		As of June 30, 2019
Cash at bank		34,131		50,005
Deposits at call⁽¹⁾		405		421
		34,536		50,426

(1)	As of September 30, 2019 and June 30, 2019, 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 September 30, 2019		As of June 30, 2019
Trade debtors		1,872		1,739
Funds receivable from Development and Commercialization Agreement⁽¹⁾		15,000		—
Income tax and tax incentives recoverable⁽²⁾		—		1,511
Foreign withholding tax recoverable		471		471
Security deposit		250		250
Sundry debtors		45		2
Other recoverable taxes (Goods and services tax and value-added tax)		215		86
Interest receivables		4		1
Trade and other receivables		17,857		4,060

(1)

(2)

(ii) Prepayments

(in U.S. dollars, in thousands)	As of September 30, 2019		As of June 30, 2019
Clinical trial research and development expenditure		6,516		6,042
Prepaid insurance and subscriptions		432		1,095
Other		1,252		899
Prepayments		8,200		8,036

Summary of Trade and Other Payables

a.	Trade and other payables


(in U.S. dollars, in thousands)	As of September 30, 2019		As of June 30, 2019
Trade payables and other payables		12,740		13,060
Trade and other payables		12,740		13,060

Summary of Borrowings

b.	Borrowings

(in U.S. dollars, in thousands)	As of September 30, 2019			As of June 30, 2019
Current
Secured liabilities:
Borrowing arrangements		18,851			14,007
		18,851			14,007

Non-current
Secured liabilities:
Borrowing arrangements		61,549			65,601
Less: transaction costs		(6,738	)		(6,738	)
Amortization of carrying amount, net of payments made		10,070			8,416
		64,881			67,279

Summary of Net Debt

(iii) Net debt reconciliation

(in U.S. dollars, in thousands)	As of September 30, 2019			As of June 30, 2019
Cash and cash equivalents		34,536			50,426
Borrowings Repayable within one year		(20,375	)		(14,007	)
Borrowings Repayable after one year		(68,797	)		(67,279	)
Net Debt⁽¹⁾		(54,636	)		(30,860	)

Cash and cash equivalents		34,536			50,426
Gross debt - fixed interest rates		(40,249	)		(33,060	)
Gross debt - variable interest rates		(48,923	)		(48,226	)
Net Debt⁽¹⁾		(54,636	)		(30,860	)

(1)	Net debt amount includes leases and borrowing arrangements.

Summary of Net Debt Reconciliation

		Liabilities from financing activities									Other assets
(in U.S. dollars, in thousands)	Notes	Borrowings			Leases			Sub-total			Cash and cash equivalents			Total
Net Debt as at 30 June 2019			(81,286	)		—			(81,286	)		50,426			(30,860	)
Recognized on adoption of IFRS 16	13		—			(5,775	)		(5,775	)		—			(5,775	)
			(81,286	)		(5,775	)		(87,061	)		50,426			(36,635	)
Cash Flows			—			335			335			(15,847	)		(15,512	)
Remeasurement of borrowing arrangements			(281	)		—			(281	)		—			(281	)
Other Changes⁽¹⁾			(2,165	)		—			(2,165	)		—			(2,165	)
Foreign exchange adjustments			—			—			—			(43	)		(43	)
Net Debt			(83,732	)		(5,440	)		(89,172	)		34,536			(54,636	)

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

As of June 30, 2019
(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			—		—		2,317		2,317
Total Financial Assets			—		—		2,317		2,317

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)		—		—		47,534		47,534
Total Financial Liabilities			—		—		47,534		47,534

As of September 30, 2019
(in U.S. dollars, in thousands)	Notes	Level 1		Level 2		Level 3		Total
Financial Assets
Financial assets at fair value through other comprehensive income:
Equity securities - biotech sector			—		—		1,952		1,952
Total Financial Assets			—		—		1,952		1,952

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)		—		—		47,528		47,528
Total Financial Liabilities			—		—		47,528		47,528

Summary of Changes in Fair Value of Level 3 Instruments

The following table presents the changes in level 3 instruments for the three months ended September 30, 2019 and the year ended June 30, 2019:

(in U.S. dollars, in thousands)	Contingent consideration provision
Opening balance - July 1, 2018		42,070
Amount used during the year		(800	)
Charged/(credited) to consolidated income statement:
Remeasurement⁽¹⁾		6,264
Closing balance - June 30, 2019		47,534

Opening balance - July 1, 2019		47,534
Amount used during the period		(294	)
Charged/(credited) to consolidated income statement:
Remeasurement⁽²⁾		288
Closing balance - September 30, 2019		47,528

(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

September 30,

Fair value as of

June 30,

Valuation

Unobservable

Three Months Ended September 30,

Year Ended

June 30,

Relationship of

unobservable inputs to

Description

2019

technique

inputs⁽¹⁾

2019

fair value

Contingent consideration provision

47,528

47,534

Discounted cash flows

Risk adjusted

discount rate

11%-13%

(12.5%)

11%-13%

(12.5%)

Three months ended September 30, 2019: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%.

Year ended June 30, 2019: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%.

Expected unit

revenues

n/a

Three months ended September 30, 2019: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%.

Year ended June 30, 2019: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%.

Expected sales volumes

n/a

Three months ended September 30, 2019: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 4%.

Year ended June 30, 2019: 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 September 30, 2019		As of June 30, 2019
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets		28,247		28,005
Fair value of royalty payments from commercialization of the intellectual property acquired		19,281		19,529
		47,528		47,534

Summary of Lease Liabilities

d.	Lease liabilities

(in U.S. dollars, in thousands)	As of September 30, 2019
Current		1,524
Non-current		3,916
Lease liabilities included in the statement of financial position		5,440

Non-financial Assets and Liabilities (Tables)

3 Months Ended

Sep. 30, 2019

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, 2019
Opening net book amount		134,453		1,770			427,779			20,604			584,606
Additions		—		100			—			—			100
Exchange differences		—		(4	)		—			1			(3	)
Amortization charge		—		(122	)		—			(1,455	)		(1,577	)
Closing net book amount		134,453		1,744			427,779			19,150			583,126

As of June 30, 2019
Cost		134,453		2,822			489,698			23,999			650,972
Accumulated amortization		—		(1,078	)		—			(4,849	)		(5,927	)
Accumulated impairment		—		—			(61,919	)		—			(61,919	)
Net book amount		134,453		1,744			427,779			19,150			583,126

Three Months Ended September 30, 2019
Opening net book amount		134,453		1,744			427,779			19,150			583,126
Exchange differences		—		(1	)		—			—			(1	)
Amortization charge		—		(31	)		—			(363	)		(394	)
Closing net book amount		134,453		1,712			427,779			18,787			582,731

As of September 30, 2019
Cost		134,453		2,803			489,698			23,999			650,953
Accumulated amortization		—		(1,091	)		—			(5,212	)		(6,303	)
Accumulated impairment		—		—			(61,919	)		—			(61,919	)
Net book amount		134,453		1,712			427,779			18,787			582,731

Summary of Deferred Tax Balances

(i) Deferred tax balances

(in U.S. dollars, in thousands)	As of September 30, 2019		As of June 30, 2019
Deferred tax assets
The balance comprises temporary differences attributable to:
Tax losses		63,162		61,742
Other temporary differences		4,292		3,687
Total deferred tax assets		67,454		65,429

Deferred tax liabilities
The balance comprises temporary differences attributable to:
Intangible assets		76,649		76,553
Total deferred tax liabilities		76,649		76,553
Net deferred tax liabilities		9,195		11,124

Deferred tax assets expected to be settled within 12 months		—		—
Deferred tax assets expected to be settled after 12 months		67,454		65,429

Deferred tax liabilities expected to be settled within 12 months		99		99
Deferred tax liabilities expected to be settled after 12 months		76,550		76,454

Schedule of Movements Related to Deferred Tax Assets and Liabilities

(ii) Movements

(in U.S. dollars, in thousands)	Tax losses⁽¹⁾ (DTA)			Other temporary differences⁽¹⁾ (DTA)			Intangible assets (DTL)			Total (DTL)
As of June 30, 2018		(55,904	)		(669	)		76,652			20,079
Charged/(credited) to:
- profit or loss		(5,838	)		(3,018	)		(99	)		(8,955	)
As of June 30, 2019		(61,742	)		(3,687	)		76,553			11,124
Charged/(credited) to:
- profit or loss		(1,420	)		(605	)		96			(1,929	)
As of September 30, 2019		(63,162	)		(4,292	)		76,649			9,195

(1)	Deferred tax assets are netted against deferred tax liabilities

Schedule of Deferred Consideration

(in U.S. dollars, in thousands)	As of September 30, 2019		As of June 30, 2019
Opening balance		10,000		—
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		10,000

Cash flow information (Tables)

3 Months Ended

Sep. 30, 2019

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 September 30, 2019		As of June 30, 2019
Cash at bank		34,131		50,005
Deposits at call		405		421
		34,536		50,426

(in U.S. dollars, in thousands)
(b) Reconciliation of net cash flows used in operations with loss after income tax	Three months ended September 30, 2019			Three months ended September 30, 2018
Loss for the period		(5,484	)		(19,498	)
Add/(deduct) net loss for non-cash items as follows:
Depreciation and amortization		849			554
Foreign exchange (gains)/losses		(232	)		10
Finance costs		2,165			1,762
Remeasurement of borrowing arrangements		281			—
Remeasurement of contingent consideration		288			622
Equity settled share-based payment		804			818
Deferred tax benefit		(1,932	)		(711	)
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables		(15,378	)		(19,616	)
(Increase)/decrease in prepayments		(164	)		(251	)
Decrease/(increase) in tax assets		1,499			1,654
Increase/(decrease) in trade creditors and accruals		(300	)		2,186
Increase/(decrease) in provisions		2,046			2,926
Increase/(decrease) in deferred consideration		—			10,000
Net cash outflows used in operations		(15,558	)		(19,544	)

Issued capital (Tables)

3 Months Ended

Sep. 30, 2019

Disclosure Of Classes Of Share Capital [Abstract]

Summary of Movements in Ordinary Share Capital

	As of September 30,				As of September 30,
	2019		2018		2019		2018
	Shares No.				(U.S. dollars, in thousands)
Opening balance		498,626,208		482,639,654		910,405		889,481
Issues of ordinary shares during the period
Exercise of share options⁽¹⁾		553,226		262,000		299		231
Transaction costs arising on share issue		—		—		—		(19	)
		553,226		262,000		299		212
Share options reserve transferred to equity on exercise of options		—		—		238		287
Ending balance		499,179,434		482,901,654		910,942		889,980

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

Financial Risk Management (Tables)

3 Months Ended

Sep. 30, 2019

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
	September 30, 2019					June 30, 2019
(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		18,451		22	%		13,607		17	%
Non-current borrowings
Variable rate borrowings - Hercules		30,472		36	%		34,619		43	%
		48,923		58	%		48,226		60	%

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
	September 30, 2019									June 30, 2019
(in U.S. dollars, in thousands, except percent data)	Low			High			USD			Low			High			USD
Borrowings - USD		9.95	%		9.95	%	48,923⁽¹⁾				10.45	%		10.45	%	48,226⁽¹⁾
Rate increase by 5%		10.45	%		10.45	%		249			10.97	%		10.97	%		261
Rate decrease by 5%		9.45	%		9.45	%		(249	)		9.93	%		9.93	%		(261	)

(1)	Effect on profit/loss of interest rate changes is based on the loan principal amount of $50.0 million as of September 30, 2019, and loan principal amount of $50.0 million as of June 30, 2019.

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

	As of									As of
	September 30, 2019									June 30, 2019
(in U.S. dollars, in thousands, except percent data)	Low			High			USD			Low			High			USD
Funds invested - USD		1.67	%		1.67	%		27,935			1.76	%		1.76	%		45,051
Rate increase by 10%		1.84	%		1.84	%		47			1.94	%		1.94	%		81
Rate decrease by 10%		1.50	%		1.50	%		(47	)		1.58	%		1.58	%		(81	)


AUD	Low			High			AUD			Low			High			AUD
Funds invested - AUD		2.23	%		2.23	%		600			2.23	%		2.23	%		600
Rate increase by 10%		2.45	%		2.45	%		1			2.45	%		2.45	%		1
Rate decrease by 10%		2.01	%		2.01	%		(1	)		2.01	%		2.01	%		(1	)

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
	September 30, 2019					June 30, 2019
(in U.S. dollars, in thousands, except percent data)	Total		% of total loans			Total		% of total loans
Financial liabilities
Current borrowings
Borrowings - NovaQuest		400		0	%		400		0	%
Non-current borrowings
Borrowings - NovaQuest		34,409		42	%		32,660		40	%
		34,809		42	%		33,060		40	%

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⁾		(23,073	)		(29,761	)		(59,066	)		(32,821	)		(144,721	)		(83,732	)
Trade payables		(12,740	)		—			—			—			(12,740	)		(12,740	)
Lease liabilities		(1,875	)		(1,540	)		(2,121	)		(1,039	)		(6,575	)		(5,440	)
		(37,688	)		(31,301	)		(61,187	)		(33,860	)		(164,036	)		(101,912	)

(1)	Contractual cash flows include payments of principal, interest and other charges. Interest is calculated based on debt held at September 30, 2019 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 (Tables)

3 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Summary of (Loss) Earnings Per Share

	Three Months Ended
	September 30, 2019			September 30, 2018
Losses per share
(in cents)
(a) Basic (losses) per share
From continuing operations attributable to the ordinary equity holders of the company		(1.10	)		(4.07	)
Total basic (losses) per share attributable to the ordinary equity holders of the company		(1.10	)		(4.07	)

(b) Diluted (losses) per share
From continuing operations attributable to the ordinary equity holders of the company		(1.10	)		(4.07	)
Total basic (losses) per share attributable to the ordinary equity holders of the company		(1.10	)		(4.07	)

(c) Reconciliation of (losses) used in calculating (losses) per share
(in U.S. dollars, in thousands)
Basic (losses) per share
(Losses) attributable to the ordinary equity holders of the company used in calculating basic (losses) per share:
From continuing operations		(5,484	)		(19,498	)

Diluted (losses) per share
(Losses) from continuing operations attributable to the ordinary equity holders of the company:
Used in calculating basic (losses) per share		(5,484	)		(19,498	)
(Losses) attributable to the ordinary equity holders of the company used in calculating diluted losses per share		(5,484	)		(19,498	)


	Three Months Ended
	September 30, 2019 (in shares)			September 30, 2018 (in shares)
Weighted average number of ordinary shares used as the denominator in calculating basic losses per share		499,301,409			479,183,393
Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted losses per share		499,301,409			479,183,393

Change in accounting policies (Tables)

3 Months Ended

Sep. 30, 2019

Disclosure Of Initial Application Of Standards Or Interpretations [Abstract]

Summary of Operating Lease

(in U.S. dollars, in thousands)	2019
Operating lease commitments disclosed as at June 30, 2019		7,460
Discounted using the group's average incremental borrowing rate of 6.52%		6,146
(Less): Short term leases recognized on a straight line basis as expense		(371	)
Lease liability recognized as at July 1, 2019		5,775

Basis of Preparation - Additional Information (Details) shares in Millions, $ in Millions			3 Months Ended
	Oct. 03, 2019 USD ($) shares	Oct. 03, 2019 AUD ($) shares	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Jul. 01, 2019	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Comprehensive gain (loss) after income tax			$ (6,181,000)	$ (19,434,000)
Net cash (outflows) in operating activities			15,558,000	19,544,000
Cash & cash equivalents			34,536,000	$ 55,143,000		$ 50,426,000	$ 37,763,000
Funds receivable from revenues			$ 15,000,000
Proceeds from issuance of shares	$ 50,500,000	$ 75.0
Placement of shares fully-paid \| shares	37.5	37.5
Incremental borrowing rate					6.52%
Term of short term leases			12 months or less
Grunenthal
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Maximum additional receivable in milestone payments			$ 30,000,000
Hercules and Nova Quest
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Maximum additional receivable in milestone payments			$ 35,000,000

Significant Changes in the Current Reporting Period - Additional Information (Details) - USD ($)		3 Months Ended
	Sep. 10, 2019	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Disclosure Of Significant Changes In Current Reporting Period [Line Items]
Revenue recognized		$ 0
Trade receivable		$ 1,872,000		$ 1,739,000
Grunenthal
Disclosure Of Significant Changes In Current Reporting Period [Line Items]
Revenue recognized	$ 15,000,000		$ 0
Trade receivable	$ 15,000,000

Loss Before Income Tax - Summary of Loss Before Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenue
Commercialization Revenue	$ 1,872	$ 1,006
Milestone Revenue	15,000	10,500
Interest Revenue	176	131
Total Revenue	17,048	11,637
Clinical trial and research & development	(6,057)	(13,374)
Manufacturing production & development	(1,295)	(3,650)
Employee benefits
Salaries and employee benefits	(4,731)	(4,926)
Defined contribution superannuation expenses	(75)	(90)
Equity settled share-based payment transactions	(804)	(818)
Total Employee benefits	(5,610)	(5,834)
Depreciation and amortization of non-current assets
Plant and equipment depreciation	(455)	(160)
Intellectual property amortization	(394)	(394)
Total Depreciation and amortization of non-current assets	(849)	(554)
Other Management & administration expenses
Overheads & administration	(1,774)	(1,995)
Consultancy	(1,145)	(849)
Legal, patent and other professional fees	(3,226)	(1,573)
Intellectual property expenses (excluding the amount amortized above)	(594)	(591)
Total Other Management & administration expenses	(6,739)	(5,008)
Fair value remeasurement of contingent consideration
Remeasurement of contingent consideration	(288)	(622)
Total Fair value remeasurement of contingent consideration	(288)	(622)
Other operating income and expenses
Remeasurement of borrowing arrangements	(401)
Foreign exchange gains/(losses)	232	(151)
Total Other operating income and expenses	(169)	(151)
Finance (costs)/gains
Remeasurement of borrowing arrangements	120
Interest expense	(3,577)	(2,653)
Total Finance costs	(3,457)	(2,653)
Loss before income tax	$ (7,416)	$ (20,209)

Loss Before Income Tax - Summary of Loss Before Income Tax (Parenthetical) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Disclosure Of Loss Before Income Tax Line Item
Equity settled share-based payment transactions	$ 804,000	$ 818,000
Income Statement Functional Expense Categories
Disclosure Of Loss Before Income Tax Line Item
Equity settled share-based payment transactions	803,798	817,558
Income Statement Functional Expense Categories \| Research and Development
Disclosure Of Loss Before Income Tax Line Item
Equity settled share-based payment transactions	319,681	527,855
Income Statement Functional Expense Categories \| Manufacturing and Commercialization
Disclosure Of Loss Before Income Tax Line Item
Equity settled share-based payment transactions	53,579	64,607
Income Statement Functional Expense Categories \| Management and Administration
Disclosure Of Loss Before Income Tax Line Item
Equity settled share-based payment transactions	$ 430,538	$ 225,096

Loss Before Income Tax - Additional Information (Details) € in Millions						1 Months Ended				3 Months Ended		12 Months Ended
	Oct. 01, 2019 USD ($)	Sep. 10, 2019 USD ($)	Sep. 09, 2019 USD ($)	Oct. 12, 2018 USD ($)	Sep. 14, 2018 USD ($)	Sep. 30, 2019 USD ($) Obligation	Dec. 31, 2018 EUR (€)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 EUR (€)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 21, 2019 EUR (€)
Disclosure Of Loss Before Income Tax Line Item
Upfront payment including transaction price			$ 15,000,000
Revenue recognized relation to patent license agreement										$ 0
Deferred consideration up-front milestone receivable recognized												$ 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											$ 500,000
Revenue										17,048,000	11,637,000
R&D and CMC services
Disclosure Of Loss Before Income Tax Line Item
Standalone selling price						$ 85,000,000
Other Development Services
Disclosure Of Loss Before Income Tax Line Item
Standalone selling price						10,000,000
Tasly
Disclosure Of Loss Before Income Tax Line Item
Deferred consideration up-front milestone receivable recognized				$ 20,000,000						20,000,000
Revenue recognized from up-front payment as deferred consideration					$ 10,000,000
Proceeds from closing of strategic alliance										0
JCR Pharmaceuticals Co. Ltd
Disclosure Of Loss Before Income Tax Line Item
Revenue recognized relation to patent license agreement											500,000
Royalties receivable under sales-based milestones						$ 1,900,000				$ 1,900,000	1,000,000
Grunenthal
Disclosure Of Loss Before Income Tax Line Item
Revenue recognized relation to patent license agreement		$ 15,000,000									$ 0
Grunenthal \| I F R S15
Disclosure Of Loss Before Income Tax Line Item
Number of performance obligations \| Obligation						3
Revenue recognized relation to patent license agreement			$ 15,000,000
Grunenthal \| Payment Received
Disclosure Of Loss Before Income Tax Line Item
Upfront payment received and allocated	$ 15,000,000
Grunenthal \| Top of Range \| Clinical, Manufacturing, Regulatory and Reimbursement Approval
Disclosure Of Loss Before Income Tax Line Item
Non-refundable upfront payments receivable						$ 150,000,000
TiGenix NV
Disclosure Of Loss Before Income Tax Line Item
Milestone revenue relating to non-refundable up-front payment								$ 5,900,000	€ 5.0
Milestone payment received \| €							€ 5.0
Revenue								$ 5,900,000	€ 5.0
TiGenix NV \| Top of Range
Disclosure Of Loss Before Income Tax Line Item
Milestone revenue relating to non-refundable up-front payment \| €													€ 10.0

Income Tax Benefit/(Expense) - Summary of Income Tax Expense/(Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Deferred tax
(Increase)/decrease in deferred tax assets	$ (2,029)	$ (686)
(Decrease)/increase in deferred tax liabilities	97	(25)
Total deferred tax expense/(benefit)	(1,932)	(711)
Income tax expense/(benefit)	$ (1,932)	$ (711)

- Definition

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

+ References + Details

Income Tax Benefit/(Expense) - Summary of Deferred Tax Assets Not Brought to Account (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Unused tax losses
Potential tax benefit at local tax rates ,Unused tax losses	$ 47,545	$ 51,807
Other temporary differences
Potential tax benefit at local tax rates ,Other temporary differences	3,510	3,130
Other tax credits
Potential tax benefit at local tax rates ,Other tax credit	3,220	3,220
Deferred tax assets not brought to account	$ 54,275	$ 58,157

Financial Assets and Liabilities - Summary of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jul. 01, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018
Disclosure Of Financial Assets And Liabilities [Line Items]
Cash & cash equivalents	$ 34,536		$ 50,426	$ 55,143	$ 37,763
Trade & other receivables	17,857		4,060
Financial assets at fair value through other comprehensive income	1,952		2,317
Other non-current assets	3,299		3,324
Financial assets, Total	57,644		60,127
Trade and other payables	12,740		13,060
Borrowings	83,732		81,286
Lease liabilities	5,440	$ 5,775	7,460
Contingent considerations	47,528		47,534
Financial liabilities, Total	149,440		141,880
Liabilities at Amortized Cost
Disclosure Of Financial Assets And Liabilities [Line Items]
Trade and other payables	12,740		13,060
Borrowings	83,732		81,286
Lease liabilities	5,440
Financial liabilities, Total	101,912		94,346
Liabilities at FVTPL
Disclosure Of Financial Assets And Liabilities [Line Items]
Contingent considerations	47,528		47,534
Financial liabilities, Total	47,528		47,534
Assets at Amortized Cost
Disclosure Of Financial Assets And Liabilities [Line Items]
Cash & cash equivalents	34,536		50,426
Trade & other receivables	17,857		4,060
Other non-current assets	3,299		3,324
Financial assets, Total	55,692		57,810
Assets at FVOCI
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial assets at fair value through other comprehensive income	1,952		2,317
Financial assets, Total	$ 1,952		$ 2,317

Financial Assets and Liabilities - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018
Disclosure Of Financial Assets And Liabilities [Abstract]
Cash at bank	$ 34,131	$ 50,005
Deposits at call	405	421
Cash and cash equivalents	$ 34,536	$ 50,426	$ 55,143	$ 37,763

Financial Assets and Liabilities - Summary of Trade and Other Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Disclosure Of Financial Assets And Liabilities [Abstract]
Trade debtors	$ 1,872	$ 1,739
Funds receivable from Development and Commercialization Agreement	15,000
Income tax and tax incentives recoverable		1,511
Foreign withholding tax recoverable	471	471
Security deposit	250	250
Sundry debtors	45	2
Other recoverable taxes (Goods and services tax and value-added tax)	215	86
Interest receivables	4	1
Trade and other receivables	$ 17,857	$ 4,060

Financial Assets and Liabilities - Summary of Trade and Other Receivables (Parenthetical) (Details) $ in Millions		3 Months Ended
	Oct. 01, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2019 AUD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2019 USD ($)
Disclosure Of Financial Assets And Liabilities [Line Items]
Receivable from financing agreement		$ 15,000,000
Net proceeds of recognized in cash and cash equivalents				$ 28,950,000
Revenue		17,048,000		$ 11,637,000
Research and Development Tax Incentive \| Australian Government
Disclosure Of Financial Assets And Liabilities [Line Items]
Revenue			$ 20.0
Other income		$ 0
Other receivables					$ 1,500,000
Grunenthal \| Entering into Significant Strategic Partnership
Disclosure Of Financial Assets And Liabilities [Line Items]
Net proceeds of recognized in cash and cash equivalents	$ 15,000,000

Financial Assets and Liabilities - Summary of Prepayments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Disclosure Of Financial Assets And Liabilities [Abstract]
Clinical trial research and development expenditure	$ 6,516	$ 6,042
Prepaid insurance and subscriptions	432	1,095
Other	1,252	899
Prepayments	$ 8,200	$ 8,036

Financial Assets and Liabilities - Additional Information (Details) $ in Thousands, $ in Millions	3 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 19, 2019	Aug. 01, 2019	Jun. 30, 2019 USD ($)	Jan. 14, 2019 USD ($)	Jun. 29, 2018 USD ($)	Jun. 29, 2018 AUD ($)	Mar. 06, 2018 USD ($)
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings	$ 83,732			$ 81,286
Current portion of borrowings	18,851			14,007
Other non-current assets	3,299			3,324
Interest-bearing deposits at call held as security	400			400
Security deposit	250			250
Remeasurement of borrowing arrangements	401
Remeasurement of borrowing arrangements within finance gains	120
Bank Guarantee
Disclosure Of Financial Assets And Liabilities [Line Items]
Other non-current assets	700
Letter of Credit
Disclosure Of Financial Assets And Liabilities [Line Items]
Other non-current assets	1,200
Floating Interest Rate
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings	48,923			48,226
Fixed interest rate [member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings	$ 40,249			$ 33,060
Hercules Capital, Inc. \| Floating Interest Rate
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings principal amount								$ 75,000
Borrowings, interest rate	9.45%	9.95%	10.20%	10.45%
Remaining available borrowings	$ 25,000
Borrowings, maturity	March 2022
Current portion of borrowings	$ 18,400
Hercules Capital, Inc. \| Tranche One
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings	$ 50,000			$ 50,000
Hercules Capital, Inc. \| Tranche One \| Floating Interest Rate
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings								$ 35,000
Hercules Capital, Inc. \| Potential Ordinary Share Transactions \| Tranche Two \| Floating Interest Rate
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings					$ 15,000
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	$ 400
Remeasurement of borrowing arrangements within finance gains	$ 100
NovaQuest Capital Management, L.L.C. \| Fixed interest rate [member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings principal amount						$ 40,000
Borrowings, interest rate						15.00%	15.00%
Borrowings, maturity	July 2026
Loan administration fee payable, current							$ 0.4
Borrowings, interest rate basis	There is a four-year interest only period, until July 2022, with the principal repayable in equal quarterly instalments over the remaining period of the loan. A $0.4 million loan administration fee is payable annually in June and is recognized as a current liability. The loan matures in July 2026. Interest on the loan will accrue at a fixed rate of 15% per annum.
NovaQuest Capital Management, L.L.C. \| Tranche One \| Fixed interest rate [member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings						$ 30,000
Bottom of Range
Disclosure Of Financial Assets And Liabilities [Line Items]
Trade receivables settlement period	30 days
Top of Range
Disclosure Of Financial Assets And Liabilities [Line Items]
Trade receivables settlement period	60 days

Financial Assets and Liabilities - Summary of Trade and Other Payables (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Disclosure Of Financial Assets And Liabilities [Abstract]
Trade payables and other payables	$ 12,740	$ 13,060
Trade and other payables	$ 12,740	$ 13,060

Financial Assets and Liabilities - Summary of Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Current
Borrowing arrangements	$ 18,851	$ 14,007
Current borrowings	18,851	14,007
Non-current
Borrowing arrangements	61,549	65,601
Less: transaction costs	(6,738)	(6,738)
Amortization of carrying amount, net of payments made	10,070	8,416
Borrowings	$ 64,881	$ 67,279

Financial Assets and Liabilities - Summary of Net Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Cash & cash equivalents	$ 34,536	$ 50,426	$ 55,143	$ 37,763
Borrowings Repayable within one year	(20,375)	(14,007)
Borrowings Repayable after one year	(68,797)	(67,279)
Net Debt	(54,636)	(30,860)
Gross debt	(83,732)	(81,286)
Fixed interest rate [member]
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Gross debt	(40,249)	(33,060)
Floating Interest Rate
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Gross debt	$ (48,923)	$ (48,226)

Financial Assets and Liabilities - Summary of Net Debt Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jul. 01, 2019	Jun. 30, 2019	Jun. 30, 2018
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Borrowings	$ (83,732)			$ (81,286)
Leases	(5,440)		$ (5,775)	(7,460)
Sub-total	89,172			(81,286)
Cash and cash equivalents	34,536	$ 55,143		50,426	$ 37,763
Net Debt	(54,636)			(30,860)
Cash Flows	(15,512)
Payment of lease liabilities	335
Increase (decrease) through financing cash flows, liabilities from financing activities	335
Net increase/(decrease) in cash and cash equivalents	(15,847)	17,523
Remeasurement of borrowing arrangements	(281)
Other Changes	(2,165)
Foreign exchange adjustments	(43)	$ (143)
Liabilities from financing activities	$ 89,172			$ (81,286)
Previously Reported
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Borrowings			(81,286)
Leases			(5,775)
Sub-total			(87,061)
Cash and cash equivalents			50,426
Net Debt			(36,635)
Liabilities from financing activities			(87,061)
Recognized on adoption of IFRS 16
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Leases			(5,775)
Sub-total			(5,775)
Net Debt			(5,775)
Liabilities from financing activities			$ (5,775)

Financial Assets and Liabilities - Summary of Financial Assets and Liabilities Measured and Recognized at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Financial assets at fair value through other comprehensive income:
Total Financial Assets	$ 1,952	$ 2,317
Financial liabilities at fair value through profit or loss:
Contingent consideration	47,528	47,534
Total Financial Liabilities	47,528	47,534
Level 3
Financial assets at fair value through other comprehensive income:
Total Financial Assets	1,952	2,317
Financial liabilities at fair value through profit or loss:
Contingent consideration	47,528	47,534
Total Financial Liabilities	47,528	47,534
Equity Securities
Financial assets at fair value through other comprehensive income:
Total Financial Assets	1,952	2,317
Equity Securities \| Level 3
Financial assets at fair value through other comprehensive income:
Total Financial Assets	$ 1,952	$ 2,317

Financial Assets and Liabilities - Summary of Changes in Fair Value of Level 3 Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Disclosure Of Financial Instruments [Line Items]
Remeasurement	$ 288	$ 622
Level 3
Disclosure Of Financial Instruments [Line Items]
Opening balance	47,534	$ 42,070	$ 42,070
Amount used during the year	(294)		(800)
Remeasurement	288		6,264
Closing balance	$ 47,528		$ 47,534

Financial Assets and Liabilities - Summary of Changes in Fair Value of Level 3 Instruments (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Level 3
Disclosure Of Financial Instruments [Line Items]
Gain loss on re-measurement of contingent consideration provision	$ 0.3	$ (6.3)

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	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Disclosure Of Financial Instruments [Line Items]
Contingent consideration provision	$ 47,528	$ 47,534	$ 42,070
Unobservable inputs	Expected unit revenues
Relationship of unobservable inputs to fair value	Three months ended September 30, 2019: A 10% increase/decrease in the price assumptions adopted would increase/decrease the fair value by 4%. Year ended June 30, 2019: 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	$ 47,528	$ 47,534
Valuation technique	Discounted cash flows
Unobservable inputs	Risk adjusted discount rate
Relationship of unobservable inputs to fair value	Three months ended September 30, 2019: A change in the discount rate by 0.5% would increase/decrease the fair value by 1%. Year ended June 30, 2019: 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	Three months ended September 30, 2019: A 10% increase/decrease in sales volume assumptions adopted would increase/decrease the fair value by 4%. Year ended June 30, 2019: 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	Sep. 30, 2019	Jun. 30, 2019
Disclosure Of Financial Instruments [Abstract]
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets	$ 28,247	$ 28,005
Fair value of royalty payments from commercialization of the intellectual property acquired	19,281	19,529
Contingent Consideration	$ 47,528	$ 47,534

Non-financial Assets and Liabilities - Schedule of Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jul. 01, 2019	Jun. 30, 2019
Lease Liabilities [Abstract]
Current	$ 1,524
Non-current	3,916		$ 0
Lease liabilities included in the statement of financial position	$ 5,440	$ 5,775	$ 7,460

Non-financial Assets and Liabilities - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	$ 583,126	$ 584,606
Additions		100
Exchange differences		(3)
Amortization charge	(394)	(1,577)
Closing net book amount	582,731	583,126
Exchange differences	(1)
Cost
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	650,972
Closing net book amount	650,953	650,972
Accumulated Amortization
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	(5,927)
Closing net book amount	(6,303)	(5,927)
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	1,744	1,770
Additions		100
Exchange differences		(4)
Amortization charge	(31)	(122)
Closing net book amount	1,712	1,744
Exchange differences	(1)
Acquired Licenses to Patents \| Cost
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	2,822
Closing net book amount	2,803	2,822
Acquired Licenses to Patents \| Accumulated Amortization
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	(1,078)
Closing net book amount	(1,091)	(1,078)
In-process Research and Development Acquired
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	427,779	427,779
Closing net book amount	427,779	427,779
In-process Research and Development Acquired \| Cost
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	489,698
Closing net book amount	489,698	489,698
In-process Research and Development Acquired \| Accumulated Impairment
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	(61,919)
Closing net book amount	(61,919)	(61,919)
Current Marketed Products
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	19,150	20,604
Exchange differences		1
Amortization charge	(363)	(1,455)
Closing net book amount	18,787	19,150
Current Marketed Products \| Cost
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	23,999
Closing net book amount	23,999	23,999
Current Marketed Products \| Accumulated Amortization
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	(4,849)
Closing net book amount	$ (5,212)	$ (4,849)

Non-financial Assets and Liabilities - Summary of Deferred Tax Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Deferred tax assets
Tax losses	$ 63,162	$ 61,742
Other temporary differences	4,292	3,687
Total deferred tax assets	67,454	65,429
Deferred tax liabilities
Intangible assets	76,649	76,553
Total deferred tax liabilities	76,649	76,553
Net deferred tax liabilities	9,195	11,124
Deferred tax assets expected to be settled after 12 months	67,454	65,429
Deferred tax liabilities expected to be settled within 12 months	99	99
Deferred tax liabilities expected to be settled after 12 months	$ 76,550	$ 76,454

Non-financial Assets and Liabilities - Schedule of Movements Related to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	$ 11,124	$ 20,079
Charged/(credited) to:
- profit or loss	(1,929)	(8,955)
Ending balance	9,195	11,124
Tax losses (DTA)
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	(61,742)	(55,904)
Charged/(credited) to:
- profit or loss	(1,420)	(5,838)
Ending balance	(63,162)	(61,742)
Other Temporary Differences (DTA)
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	(3,687)	(669)
Charged/(credited) to:
- profit or loss	(605)	(3,018)
Ending balance	(4,292)	(3,687)
Intangible Assets (DTL)
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	76,553	76,652
Charged/(credited) to:
- profit or loss	96	(99)
Ending balance	$ 76,649	$ 76,553

Non-financial Assets and Liabilities - Schedule of Deferred Consideration (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Disclosure Of Non Financial Assets And Liabilities [Abstract]
Opening balance	$ 10,000
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	$ 10,000

Cash Flow Information - Summary of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Reconciliation of cash and cash equivalents
Cash at bank	$ 34,131		$ 50,005
Deposits at call	405		421
Cash and cash equivalents	34,536	$ 55,143	$ 50,426	$ 37,763
Loss for the period	(5,484)	(19,498)
Add/(deduct) net loss for non-cash items as follows:
Depreciation and amortization	849	554
Foreign exchange (gains)/losses	(232)	10
Finance costs	2,165	1,762
Remeasurement of borrowing arrangements	281
Remeasurement of contingent consideration	288	622
Equity settled share-based payment	804	818
Deferred tax benefit	(1,932)	(711)
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables	(15,378)	(19,616)
(Increase)/decrease in prepayments	(164)	(251)
Decrease/(increase) in tax assets	1,499	1,654
Increase/(decrease) in trade creditors and accruals	(300)	2,186
Increase/(decrease) in provisions	2,046	2,926
Increase/(decrease) in deferred consideration		10,000
Net cash (outflows) in operating activities	$ (15,558)	$ (19,544)

Issued Capital - Summary of Movements in Ordinary Share Capital (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($) shares	Sep. 30, 2018 USD ($) shares
Disclosure Of Classes Of Share Capital [Line Items]
Beginning balance	$ 481,052	$ 546,008
Transactions with owners in their capacity as owners:
Ending balance	$ 475,147	$ 527,599
Issued Capital
Disclosure Of Classes Of Share Capital [Line Items]
Beginning balance, Shares \| shares	498,626,208	482,639,654
Beginning balance	$ 910,405	$ 889,481
Transactions with owners in their capacity as owners:
Exercise of share options ,shares \| shares	553,226	262,000
Exercise of share options	$ 299	$ 231
Transaction costs arising on share issue		$ (19)
Total contributions of equity during the period, shares \| shares	553,226	262,000
Total contributions of equity during the period	$ 299	$ 212
Share options reserve transferred to equity on exercise of options	$ 238	$ 287
Ending balance, Shares \| shares	499,179,434	482,901,654
Ending balance	$ 910,942	$ 889,980

Financial Risk Management - Summary of Borrowings of Interest Rate Changes (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Disclosure of Financial Risk Management [Line Items]
Variable rate borrowings	$ 149,440	$ 141,880
Interest Rate Risk
Disclosure of Financial Risk Management [Line Items]
Variable rate borrowings	$ 48,923	$ 48,226
Percentage of loans	58.00%	60.00%
Interest Rate Risk \| Hercules Capital, Inc.
Disclosure of Financial Risk Management [Line Items]
Variable rate borrowings	$ 18,451	$ 13,607
Variable rate borrowings	$ 30,472	$ 34,619
Interest Rate Risk \| Hercules Capital, Inc. \| Current borrowings
Disclosure of Financial Risk Management [Line Items]
Percentage of loans	22.00%	17.00%
Interest Rate Risk \| Hercules Capital, Inc. \| Non-current borrowings
Disclosure of Financial Risk Management [Line Items]
Percentage of loans	36.00%	43.00%

- 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	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
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	$ 4.6
Decrease in profit	4.6
Decrease non-current borrowings	2.8
Increase in profit	$ 2.8
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	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Disclosure of Financial Risk Management [Line Items]
Borrowings	$ 48,923	$ 48,226
Rate increase on borrowings	249	261
Rate decrease on borrowings	$ (249)	$ (261)
Bottom of Range
Disclosure of Financial Risk Management [Line Items]
Borrowings Interest rate	9.95%	10.45%
Rate increase	1.84%	1.94%
Rate decrease	1.50%	1.58%
Bottom of Range \| Borrowings
Disclosure of Financial Risk Management [Line Items]
Rate increase	10.45%	10.97%
Rate decrease	9.45%	9.93%
Top of Range
Disclosure of Financial Risk Management [Line Items]
Borrowings Interest rate	9.95%	10.45%
Rate increase	1.84%	1.94%
Rate decrease	1.50%	1.58%
Top of Range \| Borrowings
Disclosure of Financial Risk Management [Line Items]
Rate increase	10.45%	10.97%
Rate decrease	9.45%	9.93%

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	Sep. 30, 2019	Jun. 30, 2019
Disclosure of Financial Risk Management [Line Items]
Borrowings	$ 83,732	$ 81,286
Hercules Capital, Inc. \| Tranche One
Disclosure of Financial Risk Management [Line Items]
Borrowings	$ 50,000	$ 50,000

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	3 Months Ended		12 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 AUD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2019 AUD ($)
USD
Disclosure of Financial Risk Management [Line Items]
Funds invested	$ 27,935		$ 45,051
Rate increase on funds invested	47		81
Rate decrease on funds invested	$ (47)		$ (81)
USD \| Bottom of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	1.67%	1.67%	1.76%	1.76%
Rate increase	1.84%	1.84%	1.94%	1.94%
Rate decrease	1.50%	1.50%	1.58%	1.58%
USD \| Top of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	1.67%	1.67%	1.76%	1.76%
Rate increase	1.84%	1.84%	1.94%	1.94%
Rate decrease	1.50%	1.50%	1.58%	1.58%
AUD
Disclosure of Financial Risk Management [Line Items]
Funds invested		$ 600		$ 600
Rate increase on funds invested		1		1
Rate decrease on funds invested		$ (1)		$ (1)
AUD \| Bottom of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	2.23%	2.23%	2.23%	2.23%
Rate increase	2.45%	2.45%	2.45%	2.45%
Rate decrease	2.01%	2.01%	2.01%	2.01%
AUD \| Top of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	2.23%	2.23%	2.23%	2.23%
Rate increase	2.45%	2.45%	2.45%	2.45%
Rate decrease	2.01%	2.01%	2.01%	2.01%

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	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
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	Sep. 30, 2019	Jun. 30, 2019
Disclosure of Financial Risk Management [Line Items]
Current borrowings	$ 18,851	$ 14,007
Borrowings	64,881	67,279
Borrowings	83,732	81,286
Commodity price risk [member]
Disclosure of Financial Risk Management [Line Items]
Current borrowings	400	400
Borrowings	34,409	32,660
Borrowings	$ 34,809	$ 33,060
Percent of current borrowings	0.00%	0.00%
Percent of non-current borrowings	42.00%	40.00%
Percent of total loans	42.00%	40.00%

Financial Risk Management - Schedule of Maturity Profile of Anticipated Future Contractual Cash Flows Borrowings and Carrying Value (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	$ (164,036)
Carrying amount	(101,912)
Within 1 year [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(37,688)
Between 1-2 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(31,301)
Between 2-5 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(61,187)
Over 5 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(33,860)
Borrowings
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(144,721)
Carrying amount	(83,732)
Borrowings \| Within 1 year [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(23,073)
Borrowings \| Between 1-2 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(29,761)
Borrowings \| Between 2-5 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(59,066)
Borrowings \| Over 5 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(32,821)
Trade Payables [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(12,740)
Carrying amount	(12,740)
Trade Payables [Member] \| Within 1 year [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(12,740)
Lease Liabilities [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(6,575)
Carrying amount	(5,440)
Lease Liabilities [Member] \| Within 1 year [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(1,875)
Lease Liabilities [Member] \| Between 1-2 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(1,540)
Lease Liabilities [Member] \| Between 2-5 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(2,121)
Lease Liabilities [Member] \| Over 5 years [Member]
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	$ (1,039)

(Losses)/Earnings Per Share - Summary of (Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
(a) Basic (losses) per share
From continuing operations attributable to the ordinary equity holders of the company	$ (0.0110)	$ (0.0407)
Total basic (losses) per share attributable to the ordinary equity holders of the company	(0.0110)	(0.0407)
(b) Diluted (losses) per share
From continuing operations attributable to the ordinary equity holders of the company	(0.0110)	(0.0407)
Total basic (losses) per share attributable to the ordinary equity holders of the company	$ (0.0110)	$ (0.0407)
(c) Reconciliation of (losses) used in calculating (losses) per share
From continuing operations	$ (5,484)	$ (19,498)
Used in calculating basic (losses) per share	(5,484)	(19,498)
(Losses) attributable to the ordinary equity holders of the company used in calculating diluted losses per share	$ (5,484)	$ (19,498)
Weighted average number of ordinary shares used as the denominator in calculating basic losses per share	499,301,409	479,183,393
Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted losses per share	499,301,409	479,183,393

Events Occurring After the Reporting Period - Additional Information (Details) shares in Millions, $ in Millions, $ in Millions				3 Months Ended
	Oct. 04, 2019	Oct. 03, 2019 USD ($) $ / shares shares	Oct. 03, 2019 AUD ($) $ / shares shares	Sep. 30, 2019	Oct. 17, 2019 USD ($)
Disclosure Of Nonadjusting Events After Reporting Period [Line Items]
Proceeds from issuance of shares		$ 50.5	$ 75.0
Placement of shares fully-paid		37.5	37.5
Description of principal repayment				On October 4, 2019, the Group satisfied the milestones required to defer the commencement of principal repayments of the Hercules borrowings to April 2020. Principal repayments can be further deferred to October 2020 if further milestones are met. Given the milestones were satisfied after the reporting period, the principal repayments that were to be due in October 2019 to March 2020 are classified as current as at the reporting date.
Ordinary Shares
Disclosure Of Nonadjusting Events After Reporting Period [Line Items]
Proceeds from issuance of shares		$ 50.5	$ 75.0
Placement of shares fully-paid		37.5	37.5
Fully-paid ordinary shares price \| $ / shares		2.00	2.00
Ordinary Shares \| Lonza Bioscience Singapore Pte. Ltd \| Manufacturing Service Agreement
Disclosure Of Nonadjusting Events After Reporting Period [Line Items]
Minimum financial commitment amount \| $					$ 15.1
Ordinary Shares \| Bottom of Range
Disclosure Of Nonadjusting Events After Reporting Period [Line Items]
Principal repayment due term	2019-10
Ordinary Shares \| Top of Range
Disclosure Of Nonadjusting Events After Reporting Period [Line Items]
Principal repayment due term	2020-03

Change in Accounting Policies - Summary of Operating Lease (Details) $ in Thousands	Jul. 01, 2019 USD ($)
Lease Liabilities [Abstract]
Operating lease commitments disclosed as at June 30, 2019	$ 7,460
Discounted using the group's average incremental borrowing rate of 6.52%	6,146
(Less): Short term leases recognized on a straight line basis as expense	(371)
Lease liability recognized as at July 1, 2019	$ 5,775

Change in Accounting Policies - Summary of Operating Lease (Parenthetical) (Details)	Jul. 01, 2019
Lease Liabilities [Abstract]
Incremental borrowing rate	6.52%

Change in Accounting Policies - Additional Information (Details) $ in Millions	Jul. 01, 2019 USD ($)
Disclosure Of Changes In Accounting Estimates [Line Items]
Increase in property, plant and equipment	$ 4.7
Increase in lease liabilities	5.6
Net impact on retained earnings	$ 0.9
Top of Range
Disclosure Of Changes In Accounting Estimates [Line Items]
Operating leases remaining lease term	12 months

Segment Information - Additional Information (Details)	3 Months Ended
Segment Information - Additional Information (Details)	Sep. 30, 2019 Segment
Disclosure Of Operating Segments [Abstract]
Number of operating segment	1

Income Tax Benefit/(Expense) - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Abstract]
Deferred tax assets not brought to account	$ 54,275	$ 58,157