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Financial assets and liabilities - Summary of Trade and Other Payables (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Disclosure Of Financial Assets And Liabilities [Abstract]
Trade payables and other payables	$ 20,972	$ 23,079
Trade and other payables	$ 20,972	$ 23,079

Financial risk management

9 Months Ended

Mar. 31, 2023

Disclosure Of Financial Risk Management [Abstract]

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

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

Transact primarily with the best risk rated banks available in each region giving consideration to the products required, the quantum of cash reserves held and future forecasted requirements.

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 relating to clinical, regulatory and overhead activities and foreign currency deposits held primarily in the Group’s Australian based entity, whose functional currency is the A$. The Group also has foreign currency amounts owing in the Group’s Swiss and Singapore based entities, whose functional currencies are the US$. 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.

As of March 31, 2023, the Group held 78% of its cash in US$, and 22% in A$. As of June 30, 2022, the Group held 97% of its cash in US$, and 3% in A$.

(ii) Cash flow and fair value interest rate risk

The Group is exposed to interest rate movements which impacts interest income earned on its deposits and at call accounts. The interest rate risk is managed by spreading the maturity date of our deposits across various periods. 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 March 31, 2023 and June 30, 2022. The effect on profit is shown if interest rates change by 10%, in either direction, is as follows:


	As of March 31, 2023					As of June 30, 2022
(in U.S. dollars, in thousands, except percent data)	Low		High		US$	Low(1)		High(1)		US$
Funds invested - US$	1.69	%	1.69	%	31,274	0.00	%	0.00	%	49,383
Rate increase by 10%	1.86	%	1.86	%	53	0.03	%	0.03	%	15
Rate decrease by 10%	1.52	%	1.52	%	(53)	0.03	%	0.03	%	(15)

(in Australian dollars, in thousands, except percent data)	Low		High		A$	Low		High		A$
Funds invested - A$	4.09	%	4.09	%	600	1.50	%	1.50	%	600
Rate increase by 10%	4.50	%	4.50	%	2	1.65	%	1.65	%	1
Rate decrease by 10%	3.68	%	3.68	%	(2)	1.35	%	1.35	%	(1)


(1)The interest rate was 0% for the period ended June 30, 2022. The sensitivity assumes the interest rate to increase or decrease by 0.03%, which is consistent with prior periods.

(iii) Price risk

Price risk is the risk that future cash flows derived from financial instruments will be altered as a result of a market price movement, which is defined as movements other than foreign currency rates and interest rates. The Group is exposed to price risk which arises from long-term borrowings under its facility with NovaQuest, where the timing and amounts of principal and interest payments is dependent on net sales of remestemcel-L for the treatment of SR-aGVHD in pediatric patients in the United States and other territories excluding Asia. As net sales of remestemcel-L for the treatment of SR-aGVHD in pediatric patients in these territories increase/decrease, the timing and amount of principal and interest payments relating to this type of financing arrangement will also fluctuate, resulting in an adjustment to the carrying amount of the financial liability. The adjustment is recognized in the Income Statement as remeasurement of borrowing arrangements within finance costs in the period the revision is made.

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


	As of March 31, 2023			As of June 30, 2022
(in U.S. dollars, in thousands, except percent data)	Total	% of total borrowings		Total	% of total borrowings
Financial liabilities
Current borrowings
Borrowings - NovaQuest	1,990	2	%	372	0	%
Non-current borrowings
Borrowings - NovaQuest	52,821	50	%	47,898	50	%
	54,811	52	%	48,270	50	%

As at March 31, 2023, all other factors held constant, a 20% increase in the forecast net sales of remestemcel-L for the treatment of SR-aGVHD in pediatric patients in the United States and other territories excluding Asia would increase non-current borrowing and decrease profit by $0.2 million, whereas a 20% decrease in the net sales of remestemcel-L for the treatment of SR-aGVHD in pediatric patients in the United States and other territories excluding Asia would decrease non-current borrowings and increase profit by $0.2 million.

The Group is also exposed to price risk on contingent consideration provision balances, as expected unit revenues are a significant unobservable input used in the level 3 fair value measurements. As at March 31, 2023, all other factors held constant, the increase/decrease in price assumptions adopted in the fair value measurements of the contingent consideration provision are discussed in Note 5(e)(iv).

The Group does not consider it has any exposure to price risk other than those already described above.

b. Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge its obligation and cause financial loss to the other party. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets as mentioned in Note 5.

c. Liquidity risk

Liquidity risk is the risk that the Group will not be able to pay its debts as and when they fall due. Liquidity risk has been assessed in Note 1(i).

Trade payables held by the Group as of March 31, 2023 and June 30, 2022 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 March 31, 2023, the maturity profile of the anticipated future contractual cash flows on an undiscounted basis, and which therefore differs from the carrying value, is as follows:


(in U.S. dollars, in thousands)	Within 1 year	Between 1-2 years	Between 2-5 years	Over 5 years	Total contractual cash flows	Carrying amount
Borrowings(1)(2)	(8,242)	(21,954)	(142,717)	—	(172,913)	(106,357)
Trade payables	(20,977)	—	—	—	(20,977)	(20,977)
Lease liabilities	(3,981)	(3,251)	(1,618)	—	(8,850)	(8,251)
Contingent consideration(3)	(4,639)	(2,466)	(3,546)	—	(10,651)	(786)
	(37,839)	(27,671)	(147,881)	—	(213,391)	(136,371)

(1)Contractual cash flows include payments of principal, interest and other charges. Interest is calculated based on debt held at March 31, 2023 without taking into account drawdowns of further tranches.

(2)In relation to the contractual maturities of the NovaQuest borrowings, there is variability in the maturity profile of the anticipated future contractual cash flows given the timing and amount of payments are calculated based on our estimated net sales of remestemcel-L for the treatment of pediatric SR-aGVHD.

(3)In relation to the contractual maturities of the royalty payments related to contingent consideration, there is variability in the maturity profile of the anticipated future contractual cash flows given the timing and amount of payments are calculated based on our estimated net sales of remestemcel-L for the treatment of children and adults with aGVHD. The carrying amount reflects the discounted and probability adjusted contractual balance. The carrying amount reflects the discounted and probability adjusted contractual balance related to royalty payments.

Purchase commitments

In December 2019, the Group commenced production under its manufacturing service agreement with Lonza for the supply of commercial product for the potential approval and launch of remestemcel-L for the treatment of pediatric SR-aGVHD in the US market. This agreement contains lease and non-lease components. As of March 31, 2023, the agreement contains a minimum remaining financial commitment of the non-lease component of $19.7 million, payable until September 2024. The Group has accounted for the lease component within the agreement as a lease liability separately from the non-lease components. As of March 31, 2023, the lease component is $3.0 million on an undiscounted basis, as disclosed within the total contractual cash flows as lease liabilities in Note 9(c).

The Group have agreements with third parties related to contract manufacturing and other goods and services. As of March 31, 2023, the Group had $9.8 million of non-cancellable purchase commitments related to raw materials, manufacturing agreements and other goods and services (excluding those with Lonza). This amount represents our minimum contractual obligations, including termination fees. Certain agreements provide for termination rights subject to termination fees. Under such agreement, the Group are contractually obligated to make certain payments, mainly, to reimburse them for their unrecoverable outlays incurred prior to cancellation.

The Group did not have any other purchase commitments as of March 31, 2023.

Loss before income tax

9 Months Ended

Mar. 31, 2023

Disclosure Of Loss Before Income Tax [Abstract]

Loss before income tax


		Three Months Ended March 31,		Nine Months Ended March 31,
(in U.S. dollars, in thousands)	Note	2023	2022	2023	2022
Revenue
Commercialization revenue		1,939	2,011	5,362	6,815
Milestone revenue		—	—	—	1,172
Total Revenue		1,939	2,011	5,362	7,987

Clinical trial and research & development		(1,873)	(1,592)	(6,370)	(7,823)
Manufacturing production & development		(6,137)	(6,366)	(17,422)	(20,855)

Employee benefits
Salaries and employee benefits		(4,346)	(4,522)	(14,188)	(15,192)
Defined contribution superannuation expenses		(99)	(98)	(285)	(313)
Equity settled share-based payment transactions(1)		(791)	(1,889)	(2,548)	(4,445)
Total Employee benefits		(5,236)	(6,509)	(17,021)	(19,950)

Depreciation and amortization of non-current assets
Plant and equipment depreciation		(225)	(283)	(790)	(852)
Right of use asset depreciation		(394)	(442)	(1,269)	(1,282)
Intellectual property amortization		(372)	(389)	(1,121)	(1,175)
Total Depreciation and amortization of non-current assets		(991)	(1,114)	(3,180)	(3,309)

Other Management & administration expenses
Overheads & administration		(2,434)	(2,374)	(7,411)	(7,442)
Consultancy		(864)	(737)	(2,831)	(2,514)
Legal, patent and other professional fees		(1,306)	(1,926)	(2,719)	(4,647)
Intellectual property expenses (excluding the amount amortized above)		(878)	(789)	(2,236)	(2,212)
Total Other Management & administration expenses		(5,482)	(5,826)	(15,197)	(16,815)

Fair value remeasurement of contingent consideration
Remeasurement of contingent consideration	5(e)(iii)	1,318	672	7,307	601
Total Fair value remeasurement of contingent consideration		1,318	672	7,307	601

Fair value remeasurement of warrant liability
Remeasurement of warrant liability	5(e)(vi)	(517)	896	(1,229)	3,048
Total Fair value remeasurement of warrant liability		(517)	896	(1,229)	3,048

Other operating income and expenses
Foreign exchange gains/(losses)		(86)	336	(339)	(10)


Foreign withholding tax paid	—	56	—	(3)
Derecognition of right-of-use asset	76	—	76	—
Research and development tax incentive(2)	3,113	—	3,113	—
Interest revenue	214	—	428	1
Total Other operating income and expenses	3,317	392	3,278	(12)

Finance (costs)/gains
Remeasurement of borrowing arrangements	(87)	387	(1,317)	(450)
Interest expense	(4,897)	(4,298)	(14,353)	(12,501)
Total Finance costs	(4,984)	(3,911)	(15,670)	(12,951)

Total loss before income tax	(18,646)	(21,347)	(60,142)	(70,079)

(1)Share-based payment transactions

For the three and nine months ended March 31, 2023 and 2022, the share-based payment transactions have been reflected in the Consolidated Income Statement functional expense categories as follows:


	Three Months Ended March 31,		Nine Months Ended March 31,
(in U.S. dollars)	2023	2022	2023	2022
Research and development	55,815	1,047,388	852,874	2,691,605
Manufacturing and commercialization	80,365	123,430	(103,354)	334,187
Management and administration	654,919	718,082	1,798,479	1,418,753
Equity settled share-based payment transactions	791,099	1,888,900	2,547,999	4,444,545

(2) Research and development tax incentive

The Group's research and development activities are eligible under the Australian government’s Innovation Australia Research and Development Tax Incentive program for research and development activities conducted in relation to qualifying research that meets the regulatory criteria. Management has assessed these activities and expenditures to determine which are likely to be eligible under the incentive scheme. The Group assesses, on an annual basis, the quantum of previous research and development tax claims and on-going eligibility to claim this tax incentive in Australia.

The Group recorded $3.1 million in research and development tax incentive income for the nine months ended March 31, 2023. Within this $3.1 million, $0.8 million pertains to an estimate for the nine months ended March 31, 2023, $1.1 million pertains to an estimate for the year ended June 30, 2022 and $1.2 million pertains to an estimate for the year ended June 30, 2021. No income was recognized for the nine months ended March 31, 2022 as management were yet to confirm if the Group's research and development activities were eligible under the incentive scheme.

Revenue recognition

Grünenthal arrangement

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

The Group received a non-refundable upfront payment of $15.0 million in October 2019, on signing of the contract with Grünenthal. The Group received a milestone payment in December 2019 of $2.5 million in relation to meeting a milestone event as part of the strategic partnership with Grünenthal.

In June 2022, the Group announced its intention to leverage the results from a planned US trial to support potential product approvals in both the US and EU by including 20% EU patients in order to provide regulatory harmonization, cost efficiencies and streamlined timelines, without initiating an EU trial. As a result, the strategic partnership with Grünenthal has been amended, and milestone payments relating to R&D and CMC services and other development services which were linked to the Europe trial have been removed, instead the Group is eligible to receive payments up to US$112.5 million prior to product launch in the EU, inclusive of US$17.5 million already received, if certain clinical and regulatory milestones are satisfied and reimbursement targets are achieved. Cumulative milestone payments could reach US$1 billion depending on the final outcome of Phase 3 studies and patient adoption. The Group will also receive tiered double-digit royalties on product sales as per the agreement.

The $2.5 million milestone payment received in December 2019 from Grünenthal was considered deferred consideration as of March 31, 2023. The performance obligation for the $2.5 million was previously satisfied under the original agreement, however under the amended agreement with Grünenthal it is subject to repayment to Grünenthal. Revenue will be recognized when the clinical trial has recruited the required amount of European patients, as the $2.5 million will no longer be subject to repayment to Grünenthal. For the nine months ended March 31, 2023 and 2022, respectively, 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 recognized $10.0 million from this $20.0 million up-front technology access fee at closing in October 2018 and the remaining $10.0 million was recognized in revenue in February 2020. 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.

For the nine months ended March 31, 2023 and 2022, respectively, no 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, for the local treatment of fistulae. The agreement includes the right for Takeda to grant sub-licenses to affiliates and third parties. The Group is entitled to further payments up to €10.0 million when Takeda reaches certain product regulatory milestones. Additionally, the Group receives single digit royalties on net sales of Alofisel®.

For the nine months ended March 31, 2023 and 2022, the Group earned $0.3 million and $0.2 million, respectively, of royalty income on sales of Alofisel® in Europe by our licensee Takeda.

The Group recognized $Nil in milestone revenue during the nine months ended March 31, 2023 in relation to our patent license agreement with Takeda entered into in December 2017. $1.2 million milestone revenue was recognized in the nine months ended March 31, 2022. This $1.2 million was recognized with regards to the €1.0 million regulatory milestone payment receivable from Takeda given Takeda received approval to manufacture and market Alofisel® (darvadstrocel) in Japan for the treatment of complex perianal fistulas in patients with non-active or mildly active luminal Crohn’s Disease.

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 with JCR, a research and development oriented

pharmaceutical company in Japan. Revenue recognized under this agreement is limited to the amount of cash received or for which the Group is entitled, as JCR has the right to terminate the agreement at any time.

Under the JCR Agreement, JCR is responsible for all development and manufacturing costs including sales and marketing expenses. Under the JCR Agreement, JCR has the right to develop our MSCs in two fields for the Japanese market: exclusive in conjunction with the treatment of hematological malignancies by the use of hematopoietic stem cells derived from peripheral blood, cord blood or bone marrow, or the First JCR Field; and non-exclusive for developing assays that use liver cells for non-clinical drug screening and evaluation, or the Second JCR Field. With respect to the First JCR Field, the Group are entitled to payments when JCR reaches certain commercial milestones and to escalating double-digit royalties. These royalties are subject to possible renegotiation downward in the event of competition from non-infringing products in Japan. With respect to the Second JCR Field, the Group are entitled to a double digit profit share. The Group expanded our partnership with JCR in Japan for two new indications: for wound healing in patients with Epidermolysis Bullosa (“EB”) in October 2018 and for hypoxic ischemic encephalopathy (“HIE”), a condition suffered by newborns who lack sufficient blood supply and oxygen to the brain, in June 2020. The Group will receive royalties on TEMCELL® Hs. Inj. (“TEMCELL”), a registered trademark of JCR product sales for EB and HIE, if and when JCR begins selling TEMCELL for such indications in Japan. The Group apply the sales-based and usage-based royalty exception for licenses of intellectual property and therefore recognizes royalty revenue at the later of when the subsequent sale or usage occurs and the associated performance obligation has been satisfied.

In the nine months ended March 31, 2023, the Group recognized $5.1 million in commercialization revenue relating to royalty income earned on sales of TEMCELL in Japan by our licensee JCR, compared with $6.6 million for the nine months ended March 31, 2022. These amounts were recorded in revenue as there are no further performance obligations required in regard to these items.

Inventories

Inventories are included in the financial statements at the lower of cost (including raw materials, direct labor, other direct costs and related production overheads) and net realizable value. Pre-launch inventory is held as an asset when there is a high probability of regulatory approval for the product in accordance with IAS 2 Inventories. Before that point, a provision is made against the carrying value to its recoverable amount in accordance with IAS 2 Inventories; the provision is then reversed at the point when a high probability of regulatory approval is determined.

The Group considers a number of factors in determining the probability of the product candidate realizing future economic benefit, including the product candidate’s current status in the regulatory approval process, results from the related pivotal clinical trial, results from meetings with relevant regulatory agencies prior to the filing of regulatory applications, the market need, historical experience, as well as potential impediments to the approval process such as product safety or efficacy, commercialization and market trends.

When a provision is made against the carrying value of pre-launch inventory the costs are recognized within Manufacturing Commercialization expenses. When the high probability threshold is met, the provision will be reversed through Manufacturing Commercialization expenses. As of March 31, 2023, there was $31.0 million of pre-launch inventory recognized on the balance sheet that was fully provided for, compared with $28.9 million at June 30, 2022. For the nine months ended March 31, 2023 and 2022, $2.1 million and $7.9 million of pre-launch inventory costs have been recognized within Manufacturing Commercialization expenses, respectively, in relation to the provision against the carrying value of pre-launch inventory. Of the total provision amount, $0.2 million relates to obsolete stock at March 31, 2023 and $0.5 million relates to obsolete stock at June 30, 2022.

Loss before income tax (Tables)

9 Months Ended

Mar. 31, 2023

Disclosure Of Loss Before Income Tax [Abstract]

Summary of Loss Before Income Tax


		Three Months Ended March 31,		Nine Months Ended March 31,
(in U.S. dollars, in thousands)	Note	2023	2022	2023	2022
Revenue
Commercialization revenue		1,939	2,011	5,362	6,815
Milestone revenue		—	—	—	1,172
Total Revenue		1,939	2,011	5,362	7,987

Clinical trial and research & development		(1,873)	(1,592)	(6,370)	(7,823)
Manufacturing production & development		(6,137)	(6,366)	(17,422)	(20,855)

Employee benefits
Salaries and employee benefits		(4,346)	(4,522)	(14,188)	(15,192)
Defined contribution superannuation expenses		(99)	(98)	(285)	(313)
Equity settled share-based payment transactions(1)		(791)	(1,889)	(2,548)	(4,445)
Total Employee benefits		(5,236)	(6,509)	(17,021)	(19,950)

Depreciation and amortization of non-current assets
Plant and equipment depreciation		(225)	(283)	(790)	(852)
Right of use asset depreciation		(394)	(442)	(1,269)	(1,282)
Intellectual property amortization		(372)	(389)	(1,121)	(1,175)
Total Depreciation and amortization of non-current assets		(991)	(1,114)	(3,180)	(3,309)

Other Management & administration expenses
Overheads & administration		(2,434)	(2,374)	(7,411)	(7,442)
Consultancy		(864)	(737)	(2,831)	(2,514)
Legal, patent and other professional fees		(1,306)	(1,926)	(2,719)	(4,647)
Intellectual property expenses (excluding the amount amortized above)		(878)	(789)	(2,236)	(2,212)
Total Other Management & administration expenses		(5,482)	(5,826)	(15,197)	(16,815)

Fair value remeasurement of contingent consideration
Remeasurement of contingent consideration	5(e)(iii)	1,318	672	7,307	601
Total Fair value remeasurement of contingent consideration		1,318	672	7,307	601

Fair value remeasurement of warrant liability
Remeasurement of warrant liability	5(e)(vi)	(517)	896	(1,229)	3,048
Total Fair value remeasurement of warrant liability		(517)	896	(1,229)	3,048

Other operating income and expenses
Foreign exchange gains/(losses)		(86)	336	(339)	(10)


Foreign withholding tax paid	—	56	—	(3)
Derecognition of right-of-use asset	76	—	76	—
Research and development tax incentive(2)	3,113	—	3,113	—
Interest revenue	214	—	428	1
Total Other operating income and expenses	3,317	392	3,278	(12)

Finance (costs)/gains
Remeasurement of borrowing arrangements	(87)	387	(1,317)	(450)
Interest expense	(4,897)	(4,298)	(14,353)	(12,501)
Total Finance costs	(4,984)	(3,911)	(15,670)	(12,951)

Total loss before income tax	(18,646)	(21,347)	(60,142)	(70,079)

(1)Share-based payment transactions

For the three and nine months ended March 31, 2023 and 2022, the share-based payment transactions have been reflected in the Consolidated Income Statement functional expense categories as follows:


	Three Months Ended March 31,		Nine Months Ended March 31,
(in U.S. dollars)	2023	2022	2023	2022
Research and development	55,815	1,047,388	852,874	2,691,605
Manufacturing and commercialization	80,365	123,430	(103,354)	334,187
Management and administration	654,919	718,082	1,798,479	1,418,753
Equity settled share-based payment transactions	791,099	1,888,900	2,547,999	4,444,545

Cash flow information - Summary of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021
Reconciliation of cash and cash equivalents
Cash at bank	$ 48,396		$ 48,396		$ 60,034
Deposits at call	403		403		413
Cash and cash equivalents	48,799	$ 76,760	48,799	$ 76,760	60,447	$ 136,881
Loss for the period	$ (18,600)	$ (21,302)	(59,970)	(69,892)
Add/(deduct) net loss for non-cash items as follows:
Depreciation and amortization			3,180	3,309
Foreign exchange losses/(gains)			363	10
Gain on derecognition of right-of-use assets			(76)	0
Finance costs			15,670	12,936
Remeasurement of contingent consideration			(7,307)	(601)
Remeasurement of warrant liabilities			1,229	(3,048)	$ (5,896)
Equity settled share-based payment			2,548	4,445
Deferred tax benefit			(172)	(187)
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables			(734)	(1,093)
Decrease/(increase) in prepayments			826	901
Decrease/(increase) in tax incentive recoverable			(3,113)	0
Increase/(decrease) in trade creditors and accruals			605	691
Increase/(decrease) in provisions			(40)	641
Net cash (outflows) in operating activities			$ (46,991)	$ (51,888)

Financial assets and liabilities - Summary of Trade and Other Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Disclosure Of Financial Assets And Liabilities [Abstract]
Trade debtors	$ 1,912	$ 2,224
Tax incentives recoverable	3,113	0
Foreign withholding tax recoverable	471	471
U.S. Tax credits	1,473	1,473
Net investment in sublease	191	0
Interest receivables	13	0
Other recoverable taxes (Goods and services tax and value-added tax)	200	235
Other asset	1,020	0
Trade and other receivables	$ 8,393	$ 4,403

Significant changes in the current reporting period	9 Months Ended
Significant changes in the current reporting period	Mar. 31, 2023
Disclosure Of Significant Changes In Current Reporting Period [Abstract]
Significant changes in the current reporting period	Significant changes in the current reporting period (i) Significant events The financial position and performance of the Group was affected by the following event during the nine months ended March 31, 2023. •In January 2023, the Group resubmitted to the FDA the Biologics License Application ("BLA") for approval of remestemcel-L in the treatment of children with SR-aGVHD and in March 2023, the FDA accepted the Company's BLA resubmission and has set a Prescription Drug User Fee Act ("PDUFA") goal date of August 2, 2023. The timing and probability of BLA approval of remestemcel-L in the treatment of children with SR-aGVHD may impact the measurement of contingent consideration, Osiris MSC products within in-process research and development and NovaQuest borrowings and inventory on the balance sheet. •In December 2022, Oaktree extended the availability of up to an additional $30.0 million, subject to achieving certain milestones on or before September 30, 2023. In consideration for extending the availability period of up to $30.0 million of undrawn tranches of the loan facility in December 2022, Oaktree was also granted warrants to purchase 455,000 ADSs at $3.70 per ADS, a 15% premium to the 30-day VWAP. The Group determined that an obligation to issue the warrants had arisen from the time the first amendment to the loan agreement was signed; consequently, a liability for the warrants was recognized in December 2022. The warrants were legally issued on March 8, 2023 and may be exercised within 7 years of issuance. •In August 2022, the Group completed a $45.0 million (A$65.0 million) financing in a global private placement predominantly to major shareholders of the Company. The proceeds from the placement will facilitate activities for launch and commercialization for remestemcel-L, in the treatment of children with SR-aGVHD for which the Group seeks FDA approval under a resubmission of its BLA; and commencement of a second Phase 3 clinical trial of rexlemestrocel-L to confirm reduction in chronic low back pain associated with degenerative disc disease. On August 11, 2022, net proceeds less share issue costs and expenses of $42.6 million were received and recognized in cash and cash equivalents.

Financial assets and liabilities - Summary of Net Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Cash and cash equivalents	$ 48,799	$ 60,447	$ 76,760	$ 136,881
Borrowings	(106,357)	(96,634)
Lease liabilities	(8,251)	(10,271)
Warrant liability	(4,450)	(2,185)		$ 0
Net Debt	(70,259)	(48,643)
Gross debt - fixed interest rates
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Borrowings	(114,608)	(106,905)
Gross debt - variable interest rates
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Borrowings	$ 0	$ 0

Non-financial assets and liabilities

9 Months Ended

Mar. 31, 2023

Disclosure Of Non Financial Assets And Liabilities [Abstract]

Non-financial Assets and Liabilities

Non-financial assets and liabilities

a. 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, 2022
Opening net book amount	134,453	2,072	427,779	16,242	580,546
Additions	—	(450)	—	—	(450)
Exchange differences	—	74	—	1	75
Amortization charge	—	(64)	—	(1,455)	(1,519)
Closing net book amount	134,453	1,632	427,779	14,788	578,652

As of June 30, 2022
Cost	134,453	2,987	489,698	24,000	651,138
Accumulated amortization	—	(1,355)	—	(9,212)	(10,567)
Accumulated impairment	—	—	(61,919)	—	(61,919)
Net book amount	134,453	1,632	427,779	14,788	578,652

Nine Months Ended March 31, 2023
Opening net book amount	134,453	1,632	427,779	14,788	578,652
Additions/(Reversals)	—	—	—	—	—
Exchange differences	—	—	—	—	—
Amortization charge	—	(30)	—	(1,091)	(1,121)
Closing net book amount	134,453	1,602	427,779	13,697	577,531

As of March 31, 2023
Cost	134,453	2,975	489,698	24,000	651,126
Accumulated amortization	—	(1,373)	—	(10,303)	(11,676)
Accumulated impairment	—	—	(61,919)	—	(61,919)
Net book amount	134,453	1,602	427,779	13,697	577,531

(i) Carrying value of in-process research and development acquired by product


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Cardiovascular products(1)	254,351	254,351
Intravenous products for metabolic diseases and inflammatory/immunologic conditions(2)	70,730	70,730
MSC products(3)	102,698	102,698
	427,779	427,779

(1)Includes MPC-150-IM for the treatment or prevention of chronic heart failure and MPC-25-IC for the treatment or prevention of acute myocardial infarction

(2)Includes MPC-300-IV for the treatment of biologic-refractory rheumatoid arthritis and diabetic nephropathy

(3)Includes remestemcel-L for the treatment of children with SR-aGVHD and remestemcel-L for the treatment of Crohn’s disease

For all products included within the above balances, the underlying currency of each item recorded is US$.

During the three months ended March 31, 2023, a full annual impairment assessment was performed. No impairment of the in-process research and development and goodwill were identified.

b. Provisions


	As of March 31, 2023			As of June 30, 2022
(in U.S. dollars, in thousands)	Current	Non-current	Total	Current	Non-current	Total
Contingent consideration	10,543	8,120	18,663	10,823	12,461	23,284
Employee benefits	3,283	47	3,330	3,333	62	3,395
Provision for license agreements	3,750	—	3,750	3,750	—	3,750
	17,576	8,167	25,743	17,906	12,523	30,429

(i) Information about individual provisions and significant estimates

Contingent consideration

The contingent consideration provision relates to the Group’s liability for certain milestones and royalty achievements pertaining to the acquired MSC assets from Osiris. Further disclosures can be found in Note 5(e)(iii).

Employee benefits

The provision for employee benefits relates to the Group’s liability for annual leave, short term incentives and long service leave.

Employee benefits include accrued annual leave. As at March 31, 2023 and June 30, 2022, the entire amount of the annual leave accrual was $1.0 million and $1.0 million respectively, and is presented as current, since the Group does not have an unconditional right to defer settlement for any of these obligations.

(ii) Movements

The contingent consideration provision relates to the Group’s liability for certain milestones and royalty achievements. Refer to Note 5(e)(iii) for movements in contingent consideration for the period ended March 31, 2023 and June 30, 2022.

c. Deferred tax balances

(i) Deferred tax balances


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Deferred tax assets
The balance comprises temporary differences attributable to:
Tax losses	78,640	80,411
Other temporary differences	9,415	7,831
Total deferred tax assets	88,055	88,242

Deferred tax liabilities
The balance comprises temporary differences attributable to:
Intangible assets	88,055	88,242
Total deferred tax liabilities	88,055	88,242
Net deferred tax 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, 2021	(71,916)	(8,248)	80,164	—
Charged/(credited) to:
- profit or loss	(8,742)	425	8,078	(239)
- directly to equity	247	(8)	—	239
As of June 30, 2022	(80,411)	(7,831)	88,242	—
Charged/(credited) to:
- profit or loss	1,599	(1,584)	(187)	(172)
- directly to equity	172	—	—	172
As of March 31, 2023	(78,640)	(9,415)	88,055	—

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

Financial assets and liabilities - Summary of Financial Assets and Liabilities Measured and Recognized at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2021
Financial assets at fair value through other comprehensive income:
Total Financial Assets	$ 2,032	$ 1,758
Financial liabilities at fair value through profit or loss:
Contingent consideration	18,663	23,284
Warrant liabilities	4,450	2,185	$ 0
Total Financial Liabilities	23,113	25,469
Level 1
Financial assets at fair value through other comprehensive income:
Total Financial Assets	0	0
Financial liabilities at fair value through profit or loss:
Contingent consideration	0	0
Warrant liabilities	0	0
Total Financial Liabilities	0	0
Level 2
Financial assets at fair value through other comprehensive income:
Total Financial Assets	0	0
Financial liabilities at fair value through profit or loss:
Contingent consideration	0	0
Warrant liabilities	0	0
Total Financial Liabilities	0	0
Level 3
Financial assets at fair value through other comprehensive income:
Total Financial Assets	2,032	1,758
Financial liabilities at fair value through profit or loss:
Contingent consideration	18,663	23,284
Warrant liabilities	4,450	2,185
Total Financial Liabilities	23,113	25,469
Equity Securities
Financial assets at fair value through other comprehensive income:
Total Financial Assets	2,032	1,758
Equity Securities \| Level 1
Financial assets at fair value through other comprehensive income:
Total Financial Assets	0	0
Equity Securities \| Level 2
Financial assets at fair value through other comprehensive income:
Total Financial Assets	0	0
Equity Securities \| Level 3
Financial assets at fair value through other comprehensive income:
Total Financial Assets	$ 2,032	$ 1,758

Consolidated Statement of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Commercialization revenue received	$ 5,646	$ 7,969
Government grants and tax incentives received	0	24
Payments to suppliers and employees (inclusive of goods and services tax)	(53,032)	(59,855)
Interest received	399	5
Income taxes paid	(4)	(31)
Net cash (outflows) in operating activities	(46,991)	(51,888)
Cash flows from investing activities
Investment in fixed assets	(227)	(110)
Receipts from investment in sublease	67	0
Payments for intellectual property	(50)	(75)
Net cash (outflows) in investing activities	(210)	(185)
Cash flows from financing activities
Proceeds from borrowings	0	51,919
Repayment of borrowings	0	(55,458)
Payment of transaction costs from borrowings	(412)	(5,513)
Interest and other costs of finance paid	(4,244)	(4,317)
Proceeds from issue of shares	45,065	209
Proceeds from issue of warrants	0	8,081
Payments for share issue costs	(2,873)	(216)
Payments for lease liabilities	(1,791)	(2,359)
Net cash inflows/(outflows) by financing activities	35,745	(7,654)
Net increase/(decrease) in cash and cash equivalents	(11,456)	(59,727)
Cash and cash equivalents at beginning of period	60,447	136,881
FX gain/(losses) on the translation of foreign bank accounts	(192)	(394)
Cash and cash equivalents at end of period	$ 48,799	$ 76,760

Financial assets and liabilities - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021
Disclosure Of Financial Assets And Liabilities [Abstract]
Cash at bank	$ 48,396	$ 60,034
Deposits at call	403	413
Cash and cash equivalents	$ 48,799	$ 60,447	$ 76,760	$ 136,881

Equity (Tables)

9 Months Ended

Mar. 31, 2023

Disclosure of classes of share capital [abstract]

Schedule of Share Capital

Share capital


	As of March 31,
	2023	2022	2023	2022
	Shares No.		(U.S. dollars, in thousands)
Contributed equity
(i)Share capital
Ordinary shares	737,121,218	650,454,551	1,207,500	1,165,309
Less: Treasury Shares	(542,903)	(542,903)	—	—
Total Contributed Equity	736,578,315	649,911,648	1,207,500	1,165,309

Summary of Movements in Ordinary Share Capital

Movements in ordinary share capital


	Nine Months Ended March 31,		Nine Months Ended March 31,
	2023	2022	2023	2022
	Shares No.		(U.S. dollars, in thousands)
Opening balance	650,454,551	648,696,070	1,165,309	1,163,153
Issues of ordinary shares during the period
Exercise of share options(1)	—	—	—	209
Transfer to employee share trust(1)	—	—	—	—
Share based compensation for services rendered	—	1,758,481	—	1,698
Placement of shares under a share placement agreement(2)	86,666,667	—	45,065	—
Transaction costs arising on share issue	—	—	(2,874)	21
Total contributions of equity during the period	86,666,667	1,758,481	42,191	1,928
Share options reserve transferred to equity on exercise of options	—	—	—	228
Ending balance	737,121,218	650,454,551	1,207,500	1,165,309


(1)Options are issued to employees, directors and consultants in accordance with the Mesoblast Employee Share Option Plan. From July 1, 2020, unpaid shares are issued to the share trust to enable future option exercises to be settled. On exercise of options, the proceeds of the exercise are recorded in ordinary share capital in Mesoblast Limited and the exercise is settled by transfer of the shares from the share trust to the employee. Prior to July 1, 2020, the shares issued and share capital received on the exercise of options were recorded in ordinary share capital.


(2)During the nine months ended March 31, 2023, 86,666,667 shares were issued in an equity purchase of Mesoblast Limited at A$0.75 per share to existing and new institutional investors, representing a 5.0% discount to the thirty trading-day volume weighted average price.

Summary of Movements of Shares in Share Trust

Movements of shares in share trust


	Nine Months Ended March 31,		Nine Months Ended March 31,
	2023	2022	2023	2022
	Shares No.		(U.S. dollars, in thousands)
Opening balance	542,903	771,983	—	—
Movement of shares in share trust
Exercise of share options(1)	—	(229,080)	—	—
Ending balance	542,903	542,903	—	—


(1)Options are issued to employees, directors and consultants in accordance with the Mesoblast Employee Share Option Plan. From July 1, 2020, unpaid shares are issued to the share trust to enable future option exercises to be settled. On exercise of options, the proceeds of the exercise are recorded in ordinary share capital in Mesoblast Limited and the exercise is settled by transfer of the shares from the share trust to the employee. Prior to July 1, 2020, the shares issued and share capital received on the exercise of options were recorded in ordinary share capital.

Summary of Warrant Reserve

Warrant reserve


(in U.S. dollars, in thousands)	As of March 31,	As of June 30,
Warrant reserve	2023	2022
Opening balance	12,969	12,969
Movement during the period	—	—
Closing Balance	12,969	12,969

Non-financial assets and liabilities (Tables)

9 Months Ended

Mar. 31, 2023

Disclosure Of Non Financial Assets And Liabilities [Abstract]

Summary of Intangible Assets

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, 2022
Opening net book amount	134,453	2,072	427,779	16,242	580,546
Additions	—	(450)	—	—	(450)
Exchange differences	—	74	—	1	75
Amortization charge	—	(64)	—	(1,455)	(1,519)
Closing net book amount	134,453	1,632	427,779	14,788	578,652

As of June 30, 2022
Cost	134,453	2,987	489,698	24,000	651,138
Accumulated amortization	—	(1,355)	—	(9,212)	(10,567)
Accumulated impairment	—	—	(61,919)	—	(61,919)
Net book amount	134,453	1,632	427,779	14,788	578,652

Nine Months Ended March 31, 2023
Opening net book amount	134,453	1,632	427,779	14,788	578,652
Additions/(Reversals)	—	—	—	—	—
Exchange differences	—	—	—	—	—
Amortization charge	—	(30)	—	(1,091)	(1,121)
Closing net book amount	134,453	1,602	427,779	13,697	577,531

As of March 31, 2023
Cost	134,453	2,975	489,698	24,000	651,126
Accumulated amortization	—	(1,373)	—	(10,303)	(11,676)
Accumulated impairment	—	—	(61,919)	—	(61,919)
Net book amount	134,453	1,602	427,779	13,697	577,531

Summary of Carrying Value of In Process Research and Development Acquired by Product

Carrying value of in-process research and development acquired by product


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Cardiovascular products(1)	254,351	254,351
Intravenous products for metabolic diseases and inflammatory/immunologic conditions(2)	70,730	70,730
MSC products(3)	102,698	102,698
	427,779	427,779

(1)Includes MPC-150-IM for the treatment or prevention of chronic heart failure and MPC-25-IC for the treatment or prevention of acute myocardial infarction

(2)Includes MPC-300-IV for the treatment of biologic-refractory rheumatoid arthritis and diabetic nephropathy

(3)Includes remestemcel-L for the treatment of children with SR-aGVHD and remestemcel-L for the treatment of Crohn’s disease

Summary of Provisions


	As of March 31, 2023			As of June 30, 2022
(in U.S. dollars, in thousands)	Current	Non-current	Total	Current	Non-current	Total
Contingent consideration	10,543	8,120	18,663	10,823	12,461	23,284
Employee benefits	3,283	47	3,330	3,333	62	3,395
Provision for license agreements	3,750	—	3,750	3,750	—	3,750
	17,576	8,167	25,743	17,906	12,523	30,429

Summary of Deferred Tax Balances

Deferred tax balances


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Deferred tax assets
The balance comprises temporary differences attributable to:
Tax losses	78,640	80,411
Other temporary differences	9,415	7,831
Total deferred tax assets	88,055	88,242

Deferred tax liabilities
The balance comprises temporary differences attributable to:
Intangible assets	88,055	88,242
Total deferred tax liabilities	88,055	88,242
Net deferred tax liabilities	—	—

Schedule of Movements Related to Deferred Tax Assets and Liabilities

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, 2021	(71,916)	(8,248)	80,164	—
Charged/(credited) to:
- profit or loss	(8,742)	425	8,078	(239)
- directly to equity	247	(8)	—	239
As of June 30, 2022	(80,411)	(7,831)	88,242	—
Charged/(credited) to:
- profit or loss	1,599	(1,584)	(187)	(172)
- directly to equity	172	—	—	172
As of March 31, 2023	(78,640)	(9,415)	88,055	—

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

Income tax benefit/(expense) - Summary of Income Tax Expense/(Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Current tax
Current tax	$ 0	$ 0	$ 0	$ 0
Total current tax (benefit)/expense	0	0	0	0
Deferred tax
(Increase)/decrease in deferred tax assets	15	(127)	15	(314)
(Decrease)/increase in deferred tax liabilities	(61)	82	(187)	127
Total deferred tax (benefit)/expense	(46)	(45)	(172)	(187)
Income tax (benefit)/expense	$ (46)	$ (45)	$ (172)	$ (187)

- 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

Events occurring after the reporting period	9 Months Ended
Events occurring after the reporting period	Mar. 31, 2023
Disclosure of non-adjusting events after reporting period [abstract]
Events occurring after the reporting period	Events occurring after the reporting periodOn April 25, 2023, the Group completed a global private placement primarily to existing major shareholders raising approximately $40.0 million, net of transaction costs. There were no other events that have occurred after March 31, 2023 and prior to the signing of this financial report that would likely have a material impact on the financial results presented.

Cover	9 Months Ended
Cover	Mar. 31, 2023
Cover [Abstract]
Document Type	6-K
Document Period End Date	Mar. 31, 2023
Entity File Number	001-37626
Entity Registrant Name	Mesoblast Limited
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 Central Index Key	0001345099
Current Fiscal Year End Date	--06-30
Amendment Flag	false

Consolidated Income Statement (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Profit or loss [abstract]
Revenue	$ 1,939	$ 2,011	$ 5,362	$ 7,987
Research & development	(7,066)	(8,250)	(20,496)	(27,776)
Manufacturing commercialization	(6,246)	(5,590)	(19,006)	(19,717)
Management and administration	(6,407)	(7,567)	(19,688)	(21,259)
Fair value remeasurement of contingent consideration	1,318	672	7,307	601
Fair value remeasurement of warrant liability	(517)	896	(1,229)	3,048
Other operating income and expenses	3,317	392	3,278	(12)
Finance costs	(4,984)	(3,911)	(15,670)	(12,951)
Loss before income tax	(18,646)	(21,347)	(60,142)	(70,079)
Income tax benefit/(expense)	46	45	172	187
Loss attributable to the owners of Mesoblast Limited	$ (18,600)	$ (21,302)	$ (59,970)	$ (69,892)
Losses per share from continuing operations attributable to the ordinary equity holders of the Group:
Basic - losses per share (in dollars per share)	$ (0.0253)	$ (0.0328)	$ (0.0829)	$ (0.1078)
Diluted - losses per share (in dollars per share)	$ (0.0253)	$ (0.0328)	$ (0.0829)	$ (0.1078)

Equity

9 Months Ended

Mar. 31, 2023

Disclosure of classes of share capital [abstract]

Equity

a. Contributed equity

(i) Share capital


	As of March 31,
	2023	2022	2023	2022
	Shares No.		(U.S. dollars, in thousands)
Contributed equity
(i)Share capital
Ordinary shares	737,121,218	650,454,551	1,207,500	1,165,309
Less: Treasury Shares	(542,903)	(542,903)	—	—
Total Contributed Equity	736,578,315	649,911,648	1,207,500	1,165,309

(ii) Movements in ordinary share capital


	Nine Months Ended March 31,		Nine Months Ended March 31,
	2023	2022	2023	2022
	Shares No.		(U.S. dollars, in thousands)
Opening balance	650,454,551	648,696,070	1,165,309	1,163,153
Issues of ordinary shares during the period
Exercise of share options(1)	—	—	—	209
Transfer to employee share trust(1)	—	—	—	—
Share based compensation for services rendered	—	1,758,481	—	1,698
Placement of shares under a share placement agreement(2)	86,666,667	—	45,065	—
Transaction costs arising on share issue	—	—	(2,874)	21
Total contributions of equity during the period	86,666,667	1,758,481	42,191	1,928
Share options reserve transferred to equity on exercise of options	—	—	—	228
Ending balance	737,121,218	650,454,551	1,207,500	1,165,309


(1)Options are issued to employees, directors and consultants in accordance with the Mesoblast Employee Share Option Plan. From July 1, 2020, unpaid shares are issued to the share trust to enable future option exercises to be settled. On exercise of options, the proceeds of the exercise are recorded in ordinary share capital in Mesoblast Limited and the exercise is settled by transfer of the shares from the share trust to the employee. Prior to July 1, 2020, the shares issued and share capital received on the exercise of options were recorded in ordinary share capital.


(2)During the nine months ended March 31, 2023, 86,666,667 shares were issued in an equity purchase of Mesoblast Limited at A$0.75 per share to existing and new institutional investors, representing a 5.0% discount to the thirty trading-day volume weighted average price.

(iii) Movements of shares in share trust


	Nine Months Ended March 31,		Nine Months Ended March 31,
	2023	2022	2023	2022
	Shares No.		(U.S. dollars, in thousands)
Opening balance	542,903	771,983	—	—
Movement of shares in share trust
Exercise of share options(1)	—	(229,080)	—	—
Ending balance	542,903	542,903	—	—


(1)Options are issued to employees, directors and consultants in accordance with the Mesoblast Employee Share Option Plan. From July 1, 2020, unpaid shares are issued to the share trust to enable future option exercises to be settled. On exercise of options, the proceeds of the exercise are recorded in ordinary share capital in Mesoblast Limited and the exercise is settled by transfer of the shares from the share trust to the employee. Prior to July 1, 2020, the shares issued and share capital received on the exercise of options were recorded in ordinary share capital.

b. Warrant reserve


(in U.S. dollars, in thousands)	As of March 31,	As of June 30,
Warrant reserve	2023	2022
Opening balance	12,969	12,969
Movement during the period	—	—
Closing Balance	12,969	12,969

In March 2021, the Group completed a A$138.0 million (US$110.0 million) private placement of 60,109,290 new fully-paid ordinary shares at a price of A$2.30. As part of this placement, the Group also issued one warrant for every four ordinary shares issued in the placement, which resulted in a further 15,027,327 warrants issued. Each warrant has an exercise price of A$2.88 per share and a 7 year term. The Group has a right to compel exercise of the warrants at any time, subject to the price of the Group’s ordinary shares trading at least A$4.32 for 45 consecutive days on the ASX. The warrants do not confer any rights to dividends or a right to participate in a new issue without exercising the warrant.

The terms of the warrants include certain anti-dilution clauses, which adjust the exercise price or conversion ratio in the event of a rights issue or bonus issue. Management analyzed these clauses and determined the fixed-for-fixed requirement was still satisfied because the relative rights of shareholders and warrant holders were maintained. Therefore the warrants were classified as equity. The warrants were initially measured in equity at fair value, which was determined using a Monte Carlo simulation (refer to Note 7(b)(iv) in the Form 20-F for the year ended June 30, 2022 for more details), with the residual consideration being attributed to the ordinary shares issued in the same transaction. The warrants are not remeasured for subsequent changes in fair value.

Legal proceedings	9 Months Ended
Legal proceedings	Mar. 31, 2023
Legal proceedings provision [abstract]
Legal proceedings	Legal proceedingsA class action proceeding in the Federal Court of Australia was served on the Company in May 2022 by the law firm William Roberts Lawyers on behalf of persons who, between February 22, 2018, and December 17, 2020, acquired an interest in Mesoblast shares, American Depository Receipts, and/or related equity swap arrangements. In June 2022, the firm Phi Finney McDonald commenced a second shareholder class action against the Company in the Federal Court of Australia asserting similar claims arising during the same period. Like the class action lawsuit from October 2020 filed in the U.S. Federal District Court for the Southern District of New York (which had court approval for settlement in August 2022), the Australian class actions relate to the Complete Response Letter released by the FDA in relation to the Company's GvHD product candidate; they also relate to certain representations made by the Company in relation to our COVID-19 product candidate and the decline in the market price of the Company's ordinary shares in December 2020. The Australian class actions have been consolidated into one lawsuit. The Company will continue to vigorously defend against the proceedings. The Company cannot provide any assurance as to the possible outcome or cost to us from the lawsuit, particularly as it is at an early stage, nor how long it may take to resolve such lawsuit. Thus, the Company has not accrued any amounts in connection with such legal proceedings.

Non-financial assets and liabilities - Schedule of Movements Related to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2022
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	$ 0	$ 0
Charged/(credited) to:
- profit or loss	(172)	(239)
- directly to equity	172	239
Ending balance	0	0
Tax losses (DTA)
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	(80,411)	(71,916)
Charged/(credited) to:
- profit or loss	1,599	(8,742)
- directly to equity	172	247
Ending balance	(78,640)	(80,411)
Other Temporary Differences (DTA)
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	(7,831)	(8,248)
Charged/(credited) to:
- profit or loss	(1,584)	425
- directly to equity	0	(8)
Ending balance	(9,415)	(7,831)
Intangible Assets (DTL)
Deferred Tax Assets And Liabilities [Line Items]
Beginning balance	88,242	80,164
Charged/(credited) to:
- profit or loss	(187)	8,078
- directly to equity	0	0
Ending balance	$ 88,055	$ 88,242

Financial risk management - Additional Information (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2022
Disclosure of Financial Risk Management [Line Items]
Percentage of forecast net sales	20.00%
Increase non-current borrowing	$ 200,000
Decrease in profit	$ 200,000
Percentage of decrease in net sales	20.00%
Decrease non-current borrowings	$ 200,000
Increase in profit	200,000
Non-cancellable purchase commitments related to raw materials, manufacturing agreements and other goods and services	9,800,000
Other purchase commitments	0
Lonza Bioscience Singapore Pte. Ltd \| Manufacturing Service Agreement
Disclosure of Financial Risk Management [Line Items]
Minimum remaining financial commitment of non-lease component on exercise of option to extend non-cancellable term	19,700,000
Minimum financial commitment of lease component on exercise of option to extend non-cancellable term	$ 3,000,000
Currency Risk \| USD
Disclosure of Financial Risk Management [Line Items]
Percentage of cash held	78.00%	97.00%
Currency Risk \| AUD
Disclosure of Financial Risk Management [Line Items]
Percentage of cash held	22.00%	3.00%
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]
Trades payables maturity period	6 months	6 months

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	9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
Disclosure of Financial Risk Management [Line Items]
Effect on profit from change in interest rate increase or decrease		0.03%	0.00%
USD
Disclosure of Financial Risk Management [Line Items]
Effect on profit from change in interest rate increase or decrease	10.00%		10.00%
AUD
Disclosure of Financial Risk Management [Line Items]
Effect on profit from change in interest rate increase or decrease	10.00%		10.00%

Non-financial assets and liabilities - Summary of Carrying Value of In Process Research and Development Acquired by Product (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2021
Disclosure Of Intangible Assets [Line Items]
Carrying value of in process research and development	$ 577,531	$ 578,652	$ 580,546
In-process research and development acquired
Disclosure Of Intangible Assets [Line Items]
Carrying value of in process research and development	427,779	427,779	$ 427,779
In-process research and development acquired \| Cardiovascular Products
Disclosure Of Intangible Assets [Line Items]
Carrying value of in process research and development	254,351	254,351
In-process research and development acquired \| Intravenous Products
Disclosure Of Intangible Assets [Line Items]
Carrying value of in process research and development	70,730	70,730
In-process research and development acquired \| MSC Products
Disclosure Of Intangible Assets [Line Items]
Carrying value of in process research and development	$ 102,698	$ 102,698

Equity - Additional Information (Details) $ / shares in Units, $ in Thousands, $ in Millions	1 Months Ended		9 Months Ended
	Mar. 31, 2021 USD ($) $ / shares	Mar. 31, 2021 AUD ($) $ / shares shares	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2023 $ / shares
Disclosure Of Classes Of Share Capital [Line Items]
Proceeds from issue of shares \| $			$ 45,065	$ 209
Warrants
Disclosure Of Classes Of Share Capital [Line Items]
Number of warrants (in shares) \| shares		15,027,327
Warrant exercise price per share (in australian dollar per shares)		$ 2.88
Warrant exercise term	7 years	7 years
Share price, minimum consecutive day		45 days
Warrants \| Bottom of Range
Disclosure Of Classes Of Share Capital [Line Items]
Share price for right exercise of the warrants (in australian dollar per shares)	4.32	4.32
Private Placement
Disclosure Of Classes Of Share Capital [Line Items]
Proceeds from issue of shares	$ 110,000	$ 138.0
Fully-paid ordinary shares (in shares) \| shares		60,109,290
Exercise price (in australian dollars per share)		$ 2.30			$ 0.75
Conversion ratio of warrants		0.25

Loss before income tax - Additional Information (Details) € in Millions	1 Months Ended					9 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($)	Feb. 29, 2020 USD ($)	Dec. 31, 2019 USD ($)	Oct. 31, 2019 USD ($)	Oct. 31, 2018 USD ($) milestone	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2022 EUR (€)	Dec. 31, 2017 EUR (€)
Disclosure Of Loss Before Income Tax [Line Items]
Tax incentive income						$ 3,100,000	$ 0
Current tax incentive income						800,000
Noncurrent tax incentive income								$ 1,100,000	$ 1,200,000
Revenue recognized from up-front payment as deferred consideration		$ 10,000,000
Receipt on non refundable up-front payment upon reaching product regulatory milestone					$ 25,000,000
Escalating milestone payments \| milestone					6
Pre-launch inventory recognized	$ 28,900,000					31,000,000		28,900,000
Provision for obsolete stock						200,000		$ 500,000
Manufacturing Commercialization Expenses
Disclosure Of Loss Before Income Tax [Line Items]
Pre-launch inventory recognized						2,100,000	7,900,000
Grunenthal
Disclosure Of Loss Before Income Tax [Line Items]
Non-refundable upfront payment received				$ 15,000,000
Milestone payment received			$ 2,500,000
Percentage of patients to provide regulatory harmonization, cost efficiencies and streamlined timelines	20.00%
Non-refundable upfront payments receivable	$ 17,500,000
Cumulative milestone payments reachable amount	1,000,000,000
Revenue recognized for right of use license of IP						0	0
Grunenthal \| Top of Range \| Clinical, Manufacturing, Regulatory and Reimbursement Approval
Disclosure Of Loss Before Income Tax [Line Items]
Amount entitled to be received upon reaching product clinical and regulatory milestones and reimbursement targets are achieved	$ 112,500,000
Tasly
Disclosure Of Loss Before Income Tax [Line Items]
Deferred consideration milestone consideration recognized					$ 20,000,000
Revenue recognized from up-front payment as deferred consideration					$ 10,000,000	0	0
TiGenix NV
Disclosure Of Loss Before Income Tax [Line Items]
Royalty income						300,000	200,000
Milestone revenue in relation to patent license agreement						0	1,200,000
Regulatory milestone payment receivable \| €										€ 1.0
TiGenix NV \| Top of Range
Disclosure Of Loss Before Income Tax [Line Items]
Milestone revenue relating to non-refundable up-front payment \| €											€ 10.0
JCR Pharmaceuticals Co. Ltd
Disclosure Of Loss Before Income Tax [Line Items]
Royalties receivable under sales-based milestones						$ 5,100,000	$ 6,600,000

Equity - Summary of Movements in Ordinary Share Capital (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2022 USD ($) shares	Mar. 31, 2023 USD ($) shares	Mar. 31, 2022 USD ($) shares
Disclosure Of Classes Of Share Capital [Line Items]
Beginning balance	$ 535,509	$ 497,044	$ 581,397
Issues of ordinary shares during the period
Exercise of share options			0
Ending balance	$ 517,127	$ 482,168	$ 517,127
Issued Capital
Disclosure Of Classes Of Share Capital [Line Items]
Beginning balance (in shares) \| shares		650,454,551	648,696,070
Beginning balance		$ 1,165,309	$ 1,163,153
Issues of ordinary shares during the period
Exercise of share options (in shares) \| shares		0	0
Exercise of share options		$ 0	$ 209
Transfer to employee share trust (in shares) \| shares		0	0
Transfer to employee share trust		$ 0	$ 0
Share based compensation for services rendered (in shares) \| shares		0	1,758,481
Share based compensation for services rendered		$ 0	$ 1,698
Transaction costs arising on share issue (in shares) \| shares		0	0
Transaction costs arising on share issue		$ (2,874)	$ 21
Total contributions of equity during the period (in shares) \| shares		86,666,667	1,758,481
Total contributions of equity during the period		$ 42,191	$ 1,928
Share options reserve transferred to equity on exercise of options (in shares) \| shares		0	0
Share options reserve transferred to equity on exercise of options		$ 0	$ 228
Ending balance (in shares) \| shares	650,454,551	737,121,218	650,454,551
Ending balance	$ 1,165,309	$ 1,207,500	$ 1,165,309
Issued Capital \| Placement Agreement
Issues of ordinary shares during the period
Placement of shares under a share placement agreement (in shares) \| shares		86,666,667	0
Placement of shares under a share placement agreement		$ 45,065	$ 0

Financial assets and liabilities - Summary of Prepayments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Disclosure Of Financial Assets And Liabilities [Abstract]
Clinical trial research and development expenditure	$ 952	$ 1,313
Prepaid insurance and subscriptions	2,803	2,420
Other	418	1,254
Prepayments	$ 4,173	$ 4,987

Basis of preparation	9 Months Ended
Basis of preparation	Mar. 31, 2023
Basis Of Preparation [Abstract]
Basis of preparation	Basis of preparation Mesoblast Limited is a for-profit entity for the purpose of preparing the financial statements. The condensed consolidated 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, 2022. In the opinion of management, the interim financial data includes all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods. (i) Going concern The Group held total cash reserves of $48.8 million as of March 31, 2023. On April 25, 2023 the Group announced completion of a global private placement primarily to existing major shareholders raising approximately $40.0 million in proceeds, net of transaction costs. The Group continues its focus on maintaining tight control of net cash usage for operating activities, which were $47.0 million for the nine months ended March 31, 2023, a reduction of 9% compared to the prior period. As the Group prepares for a potential first product approval by the United States Food and Drug Administration (“FDA”), and in line with its commercial launch plans, additional inflows from strategic partnerships, product specific financing, capital markets and/or existing loan arrangements will be required to meet the Group’s projected expenditure consistent with its business strategy over the next 12 months. As a result of these matters, there is material uncertainty related to events or conditions that may cast significant doubt (or raise substantial doubt as contemplated by Public Company Accounting Oversight Board (“PCAOB”) standards) on the Group’s ability to continue as a going concern and, therefore, that the Group may be unable to realize its assets and discharge its liabilities in the normal course of business. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. (ii) Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets at fair value through other comprehensive income, financial assets and liabilities (including derivative instruments) at fair value through profit or loss, certain classes of property, plant and equipment and investment property. (iii) New and amended standards adopted by the Group There were no new or amended standards adopted by the Group in the nine months ended March 31, 2023. These interim financial statements follow the same accounting policies as compared to the June 30, 2022 consolidated financial statements and related notes as filed with the Australian Securities Exchange and the Securities and Exchange Commission. (iv) 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 March 31, 2023 reporting period that are expected to materially impact the Group. (v) Use of estimates The preparation of these consolidated financial statements requires the Group to make estimates and judgments that affect the reported amounts of assets, liabilities, income and expenses and related disclosures. On an ongoing basis, the Group evaluates its significant accounting policies and estimates. Estimates are based on historical experience and on various market-specific and other relevant assumptions that the Group believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. (vi) Impact of COVID-19 Estimates are assessed each period and updated to reflect current information, such as the economic considerations related to the after effects of the COVID-19 pandemic could have on the Group’s significant accounting estimates. The Group is having to account in its product-launch plans for the after effects of the COVID-19 pandemic on future potential customers, such as transplant centers, which have been and may continue to be impacted by the pandemic with respect to patient care, operations/staffing, financials, and health and safety protocols. These impacts change the way (channel, message, frequency) that Mesoblast will have to engage with these entities. Due to the effects of the COVID-19 pandemic, and recent geopolitical instability, countries in which the Group has operations have experienced some challenges in the ability of the Group’s suppliers and contractors to source, supply or acquire raw materials or components needed for its manufacturing process and supply chain. As a result, the manufacturing and commercialization of remestemcel-L and other product candidates could be adversely affected.

Loss before income tax - Summary of Loss Before Income Tax (Parenthetical) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Disclosure Of Loss Before Income Tax Line Item
Equity settled share-based payment transactions	$ 791,000	$ 1,889,000	$ 2,548,000	$ 4,445,000
Income Statement Functional Expense Categories
Disclosure Of Loss Before Income Tax Line Item
Equity settled share-based payment transactions	791,099	1,888,900	2,547,999	4,444,545
Income Statement Functional Expense Categories \| Research and development
Disclosure Of Loss Before Income Tax Line Item
Equity settled share-based payment transactions	55,815	1,047,388	852,874	2,691,605
Income Statement Functional Expense Categories \| Manufacturing and commercialization
Disclosure Of Loss Before Income Tax Line Item
Equity settled share-based payment transactions	80,365	123,430	(103,354)	334,187
Income Statement Functional Expense Categories \| Management and administration
Disclosure Of Loss Before Income Tax Line Item
Equity settled share-based payment transactions	$ 654,919	$ 718,082	$ 1,798,479	$ 1,418,753

Financial assets and liabilities

9 Months Ended

Mar. 31, 2023

Disclosure Of Financial Assets And Liabilities [Abstract]

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 March 31, 2023
Cash & cash equivalents	5(a)	—	—	48,799	48,799
Trade & other receivables	5(b)	—	—	8,393	8,393
Financial assets at fair value through other comprehensive income		2,032	—	—	2,032
Other non-current assets		—	—	2,388	2,388
		2,032	—	59,580	61,612
As of June 30, 2022
Cash & cash equivalents	5(a)	—	—	60,447	60,447
Trade & other receivables	5(b)	—	—	4,403	4,403
Financial assets at fair value through other comprehensive income		1,758	—	—	1,758
Other non-current assets		—	—	1,930	1,930
		1,758	—	66,780	68,538

(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 March 31, 2023
Trade and other payables	5(c)	—	—	20,972	20,972
Borrowings	5(d)	—	—	106,357	106,357
Contingent consideration	5(e)(iii)	—	18,663	—	18,663
Warrant liability	5(e)(vi)	—	4,450	—	4,450
		—	23,113	127,329	150,442
As of June 30, 2022
Trade and other payables	5(c)	—	—	23,079	23,079
Borrowings	5(d)	—	—	96,634	96,634
Contingent consideration	5(e)(iii)	—	23,284	—	23,284
Warrant liability	5(e)(vi)	—	2,185	—	2,185
		—	25,469	119,713	145,182

(1)Fair value through other comprehensive income

(2)Fair value through profit or loss

The Group’s exposure to various risks associated with the financial instruments is discussed in Note 9. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets mentioned above.

a. Cash and cash equivalents


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Cash at bank	48,396	60,034
Deposits at call(1)	403	413
	48,799	60,447


(1)As of March 31, 2023 and June 30, 2022, 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 and other receivables


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Trade debtors	1,912	2,224
Tax incentives recoverable	3,113	—
Foreign withholding tax recoverable	471	471
U.S. Tax credits	1,473	1,473
Net investment in sublease	191	—
Interest receivables	13	—
Other recoverable taxes (Goods and services tax and value-added tax)	200	235
Other asset	1,020	—
Trade and other receivables	8,393	4,403

(ii) Prepayments


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Clinical trial research and development expenditure	952	1,313
Prepaid insurance and subscriptions	2,803	2,420
Other	418	1,254
Prepayments	4,173	4,987

(iii) Classification as trade and other receivables

Trade receivables and other receivables represent the principal amounts due at balance date less, where applicable, any provision for expected credit losses. The Group uses the simplified approach to measuring expected credit losses, which uses a lifetime expected credit loss allowance. Debts which are known to be uncollectible are written off in the consolidated income statement. All trade receivables and other receivables are recognized at the value of the amounts receivable, as they are due for settlement within 60 days and therefore do not require remeasurement.

(v) Fair values of trade and other receivables

Due to the short-term nature of the current receivables, their carrying amount is assumed to be the same as their fair value.

(vi) Impairment and risk exposure

Information about the impairment of trade and other receivables, their credit quality and the Group’s exposure to credit risk, foreign currency risk and interest rate risk can be found in Note 9.

c. Trade and other payables


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Trade payables and other payables	20,972	23,079
Trade and other payables	20,972	23,079

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

d. Borrowings


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Borrowings
Secured liabilities:
Borrowing arrangements	81,919	81,919
Less: transaction costs	(8,622)	(8,247)
Amortization of carrying amount, net of payments made	33,060	22,962
	106,357	96,634

(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Borrowings
Current
Borrowings - NovaQuest	1,990	372
Borrowings - Oaktree	5,324	4,645
	7,314	5,017
Non-current
Borrowings - NovaQuest	52,821	47,898
Borrowings - Oaktree	46,222	43,719
	99,043	91,617
	106,357	96,634

(i) Borrowing arrangements

Funds associated with Oaktree Capital Management, L.P. (“Oaktree”)

In November 2021, the Group’s senior debt facility with Hercules was refinanced with a new $90.0 million five-year facility provided by funds associated with Oaktree. The Group drew the first tranche of $60.0 million on closing, with proceeds being used to discharge the Group's obligations under the Hercules loan. In December 2022, Oaktree extended the

availability of up to an additional $30.0 million, subject to achieving certain milestones on or before September 30, 2023. The facility has a three-year interest only period, at a fixed rate of 9.75% per annum, after which time 40% of the principal amortizes over two years and a final payment is due no later than November 2026. The facility also allows the Group to make quarterly payments of interest at a rate of 8.0% per annum for the first two years, and the unpaid interest portion (1.75% per annum) is added to the outstanding loan balance and currently accrues further interest at a fixed rate of 9.75% per annum.

On November 19, 2021, Oaktree were also granted warrants to purchase 1,769,669 American Depositary Shares (“ADSs”) at US$7.26 per ADS, a 15% premium to the 30-day VWAP. The Group determined that an obligation to issue the warrants arose from the time the debt facility was signed; consequently, a liability for the warrants was recognized in November 2021. The warrants were legally issued on January 11, 2022 and may be exercised within 7 years of issuance. On the issuance date of the Oaktree facility and the warrants, the warrants were initially measured at fair value and the Oaktree borrowing liability measured as the difference between the $60.0 million received from the Oaktree facility and the fair value of the warrants. In consideration for extending the availability period of up to $30.0 million of undrawn tranches of the loan facility in December 2022, Oaktree was also granted warrants to purchase 455,000 ADSs at $3.70 per ADS, a 15% premium to the 30-day VWAP. The Group determined that an obligation to issue the warrants arose from the time the first amendment to the loan agreement was signed; consequently, a liability for the warrants was recognized in December 2022. The warrants were legally issued on March 8, 2023 and may be exercised within 7 years of issuance. Refer to Note 5(e)(vi) for more details on warrants issued.

In the nine months ended March 31, 2023, the Group recognized a loss of $1.5 million in the Income Statement as remeasurement of borrowing arrangements within finance costs. Within this $1.5 million loss, $1.0 million relates to the remeasurement due to additional warrants being issued to Oaktree as a result of the first amendment to the loan agreement and $0.5 million relates to the adjustment of the carrying amount of our financial liability to reflect the revised estimated future cash flows from our credit facility. In the nine months ended March 31, 2022 the Group recognized a gain of $0.1 million in the Income Statement as remeasurement of borrowing arrangements within finance costs in relation to the adjustment of the carrying amount of our financial liability to reflect the revised estimated future cash flows from our credit facility.

Hercules Capital, Inc.

In March 2018, the Group entered into a loan and security agreement with Hercules, for a $75.0 million non-dilutive, four year credit facility. The Group drew the first tranche of $35.0 million on closing and a further tranche of $15.0 million was drawn in January 2019.

In November 2021, this loan was refinanced with a new $90.0 million five-year facility provided by Oaktree. The Group drew the first tranche of $60.0 million on closing, with proceeds being used to repay the outstanding balance with Hercules.

Interest on the loan was payable monthly in arrears on the 1st day of the month. In the nine months ended March 31, 2022, the interest rate on the loan was 9.70% in line with the terms of the loan agreement until extinguishing our loan with Hercules.

In the nine months ended March 31, 2023, the Group did not recognize a remeasurement in the Income Statement as the loan with Hercules was repaid and extinguished in November 2021. In the nine months ended March 31, 2022, the Group recognized a loss of $0.9 million in the Income Statement as remeasurement of borrowing arrangements within finance costs. $1.3 million of this loss relates to prepaying the Group's outstanding balance and extinguishing the loan with Hercules, offset by a $0.4 million gain to the adjustment of the carrying amount of our financial liability to reflect the revised estimated future cash flows from our credit facility.

NovaQuest Capital Management, L.L.C.

On June 29, 2018, the Group entered into an eight-year, $40.0 million loan and security agreement with NovaQuest before drawing the first tranche of $30.0 million of the principal in July 2018. The loan term includes an interest only period of approximately four years through until July 8, 2022, then a four-year amortization period through until maturity on July 8, 2026. All interest and principal payments will be deferred until after the first commercial sale of remestemcel-L for the treatment in pediatric patients with SR-aGVHD. Principal is repayable in equal quarterly instalments over the amortization period of the loan and is subject to the payment cap described below. The loan has a fixed interest rate of 15% per annum. If there are no net sales of remestemcel-L for pediatric SR-aGVHD, the loan is only repayable at maturity. The Group can elect to prepay all outstanding amounts owing at any time prior to maturity, subject to a prepayment charge, and may decide to do so if net sales of remestemcel-L for pediatric SR-aGVHD are significantly higher than current forecasts.

Following approval and first commercial sales, repayments commence based on a percentage of net sales and are limited by a payment cap which is equal to the principal due for the next 12 months, plus accumulated unpaid principal and accrued unpaid interest. During the four-year period commencing July 8, 2022, principal amortizes in equal quarterly instalments payable only after approval and first commercial sales. If in any quarterly period, 25% of net sales of remestemcel-L for pediatric SR-aGVHD exceed the annual payment cap, the Group will pay the payment cap and an additional portion of excess sales which will be used towards the prepayment amount in the event there is an early prepayment of the loan. If in any quarterly period 25% of net sales of remestemcel-L for pediatric SR-aGVHD is less than the annual payment cap, then the payment is limited to 25% of net sales of remestemcel-L for pediatric SR-aGVHD. Any unpaid interest will be added to the principal amounts owing and shall accrue further interest. At maturity date, any unpaid loan balances are repaid.

Because of this relationship of net sales and repayments, changes in our estimated net sales may trigger an adjustment of the carrying amount of the financial liability to reflect the revised estimated cash flows. The carrying amount is recalculated by computing the present value of the revised estimated future cash flows at the financial instrument’s original effective interest rate. The adjustment is recognized in the Income Statement as remeasurement of borrowing arrangements within finance costs in the period the revision is made.

In the nine months ended March 31, 2023 and 2022, the Group recognized a gain of $0.2 million and $0.4 million, respectively, in the Income Statement as remeasurement of borrowing arrangements within finance costs in relation to the adjustment of the carrying amount of our financial liability to reflect the revised estimated future cash flows as a net result of changes to the key assumptions in development timelines.

The Group recognizes a liability as current based on repayments linked to estimates of sales of remestemcel-L. However, if sales of remestemcel-L are higher than estimated, actual repayments will exceed this amount, subject to the annual payment cap described above.

The carrying amount of the loan and security agreement with NovaQuest is subordinated to the Group’s fixed rate loan with the senior creditor, Oaktree. The Group have pledged a portion of our assets relating to the SR-aGVHD product candidate as collateral under the loan facility with NovaQuest.

(ii) Compliance with loan covenants

Our loan facilities with Oaktree and NovaQuest contain a number of covenants that impose operating restrictions on us, which may restrict our ability to respond to changes in our business or take specified actions. The Group has an operating objective to at all times maintain unrestricted cash reserves in excess of six months liquidity. The objective aligns with our loan and security agreement with Oaktree where the Group is currently obliged to maintain a minimum unrestricted cash balance in the United States of $35.0 million.

The Group has complied with the financial and other restrictive covenants of its borrowing facilities during the nine months ended March 31, 2023 and during the year ended June 30, 2022.

(iii) Net Debt Reconciliation


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Cash and cash equivalents	48,799	60,447
Borrowings	(106,357)	(96,634)
Lease liabilities	(8,251)	(10,271)
Warrant liability	(4,450)	(2,185)
Net Debt(1)	(70,259)	(48,643)

Cash and cash equivalents	48,799	60,447
Gross debt - fixed interest rates	(114,608)	(106,905)
Gross debt - variable interest rates	—	—
Warrant liability	(4,450)	(2,185)
Net Debt(1)	(70,259)	(48,643)

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


	Liabilities from financing activities				Other assets
(in U.S. dollars, in thousands)	Borrowings	Leases	Warrant liability	Sub-total	Cash and cash equivalents	Total
Net Debt as at June 30, 2022	(96,634)	(10,271)	(2,185)	(109,090)	60,447	(48,643)
Cash Flows(1)	3,709	2,194	—	5,903	(11,456)	(5,553)
Remeasurement adjustments	(281)	—	(1,229)	(1,510)	—	(1,510)
Other Changes(2)	(13,151)	(337)	—	(13,488)	—	(13,488)
Issuance of warrants	—	—	(1,036)	(1,036)	—	(1,036)
Foreign exchange adjustments	—	163	—	163	(192)	(29)
Net Debt as at March 31, 2023	(106,357)	(8,251)	(4,450)	(119,058)	48,799	(70,259)

(1)Cash flows include the payments of borrowings, lease liabilities and interest which are presented as financing cash flows in the statement of cash flows.

(2)Other changes include modification of leases and accrued interest expenses for borrowings and leases.

(iv) Fair values of borrowing arrangements

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

e. Recognized fair value measurement

(i) Fair value hierarchy

The following table presents the Group's financial assets and financial liabilities measured and recognized at fair value as of March 31, 2023 and June 30, 2022 on a recurring basis, categorized by level according to the significance of the inputs used in making the measurements:


As of March 31, 2023
(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		—	—	2,032	2,032
Total Financial Assets		—	—	2,032	2,032

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)	—	—	18,663	18,663
Warrant liabilities	5(e)(vi)	—	—	4,450	4,450
Total Financial Liabilities		—	—	23,113	23,113


As of June 30, 2022
(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		—	—	1,758	1,758
Total Financial Assets		—	—	1,758	1,758

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)	—	—	23,284	23,284
Warrant liabilities	5(e)(vi)	—	—	2,185	2,185
Total Financial Liabilities		—	—	25,469	25,469

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), equity securities (unlisted) and warrant liabilities.

(ii) Valuation techniques used.

The Group did not hold any level 1 and level 2 financial instruments as at March 31, 2023 or June 30, 2022.

The Group’s level 3 assets consists of an investment in unlisted equity securities in the biotechnology sector. Level 3 assets were 100% of total assets measured at fair value as at March 31, 2023 and June 30, 2022. The Group’s level 3 liabilities consist of a contingent consideration provision related to the acquisition of Osiris’ MSC business and warrant liabilities related to the warrants granted to Oaktree as part of the debt facility. Level 3 liabilities were 100% of total liabilities measured at fair value as at March 31, 2023 and June 30, 2022. The Group used discounted cash flow analysis to determine the fair value measurements of contingent consideration and used the Black-Scholes valuation method to determine the fair value of warrant liabilities. Refer to Note 5(e)(vi) for the fair value measurement and movements in warrant liability for the period ended March 31, 2023 and June 30, 2022.

(iii) Fair value measurements using significant unobservable inputs (level 3)

The following table presents the changes in level 3 instruments for the nine months ended March 31, 2023 and the year ended June 30, 2022.


(in U.S. dollars, in thousands)			Contingent consideration provision
Opening balance - July 1, 2021			25,409
Amount used during the period			(1,212)
Charged/(credited) to consolidated income statement:
Remeasurement(1)			(913)
Closing balance - June 30, 2022			23,284

Opening balance - July 1, 2022			23,284
Reclassification during the period			2,686
Charged/(credited) to consolidated income statement:
Remeasurement(2)			(7,307)
Closing balance - March 31, 2023			18,663


(1)In the year ended June 30, 2022 a gain of $0.9 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This remeasurement was a net result of changing the key assumptions of the contingent consideration valuation such as developmental timelines, market growth 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 nine months ended March 31, 2023 a gain of $7.3 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This remeasurement was a net result of changing key assumptions of the contingent consideration valuation such as probability of payment, development timelines 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

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)
Description

Fair value
as of
March 31,
2023

Fair value
as of
June 30,
2022

Valuation
technique

Unobservable

inputs(1)

Nine Months Ended
March 31,
2023

Year Ended
June 30,
2022

Relationship of
unobservable inputs to
fair value

Contingent consideration provision

18,663

23,284

Discounted cash flows

Risk adjusted discount rate

11%-13%

(12.5%)

11%-13%

(12.5%)

Nine months ended March 31, 2023: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.01%.

Year ended 30 June, 2022: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.2%.

Expected unit sales price

Various

Nine months ended March 31, 2023: A change in the price assumptions by 10% would increase/decrease the fair value by 0.2%.

Year ended 30 June, 2022: A change in the price assumptions by 10% would increase/decrease the fair value by 2%.

Expected sales volumes

Various

Nine months ended March 31, 2023: A change in the volume assumptions by 10% would increase/decrease the fair value by 0.2%.

Year ended 30 June, 2022: A change in the volume assumptions by 10% would increase/decrease the fair value by 2%.

Probability of success and payment

Various

Nine months ended March 31, 2023: A change in the probability of success and payment assumptions by 10% and 20% would increase/decrease the fair value by 10.1% and 20.2%, respectively.

Year ended 30 June, 2022: A change in the probability of success and payment assumptions by 10% and 20% would increase/decrease the fair value by 8.6% and 17.2%, respectively.

(1)There were no significant inter-relationships between unobservable inputs that materially affect fair values.

(v) Valuation processes

In connection with the Osiris acquisition, on October 11, 2013 (the “acquisition date”), an independent valuation of the contingent consideration was carried out by an independent valuer.

For the nine months ended March 31, 2023 and the year ended June 30, 2022, the Group has adopted a process to value contingent consideration internally. This valuation has been completed by the Group’s internal valuation team and reviewed by the Chief Financial Officer (the "CFO"). The valuation team is responsible for the valuation model. The valuation team also manages a process to continually refine the key assumptions within the model. This is done with input from the relevant business units. The key assumptions in the model have been clearly defined and the responsibility for refining those assumptions has been assigned to the most relevant business units. For each indication we determine the probability of success based on the current development status within each jurisdiction and payment provisions within the agreement. Cash flows relevant to each jurisdiction are discounted appropriately based on the discount rate assumed. The remeasurement charged to the consolidated income statement in the nine months ended March 31, 2023 was a net result of changing the key assumptions of the contingent consideration valuation such as probability of payment, development timelines and the increase in valuation as the time period shortens between the valuation date and the potential settlement dates of contingent consideration.


	As of March 31,	As of June 30,
The fair value of contingent consideration (in U.S. dollars, in thousands)	2023	2022
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets	17,877	17,827
Fair value of royalty payments from commercialization of the intellectual property acquired	786	5,457
	18,663	23,284

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 sales prices:			Expected market sale price of the most comparable products currently available in the market place. This assumption is reviewed as part of the valuation process outlined above.

Expected sales volumes:			Expected sales volumes of the most comparable products currently available in the market place. This assumption is reviewed as part of the valuation process outlined above.

Probability of success and payment:			Expected cash flows used to measure contingent consideration are risk adjusted for the probability of successful development of products and payment provisions within the agreement. This assumption is reviewed as part of the valuation process outlined above.

(vi) Warrant liability


(in U.S. dollars, in thousands)	As of March 31,	As of June 30,
Warrant liability	2023	2022
Opening balance	2,185	—
Warrants fair value at grant date - November 19, 2021	—	8,081
Warrants fair value at grant date - December 22, 2022	1,036	—
Remeasurement of warrant liability	1,229	(5,896)
Closing Balance	4,450	2,185

On November 19, 2021, in connection with the $60.0 million drawdown of the Oaktree debt, Oaktree were granted the right to warrants to purchase 1,769,669 ADSs at $7.26 per ADS, a 15% premium to the 30-day VWAP. Given that Oaktree received an unconditional right to the warrants on November 19, 2021, this date has been determined as the measurement date. The warrants instruments were issued on January 11, 2022, following the required administrative process, and these warrants may be exercised within 7 years of issuance of the warrant instruments. The warrants do not confer any rights to dividends or a right to participate in a new issue without exercising the warrant.

On December 21, 2022, in consideration for extending the availability period of up to $30.0 million of undrawn tranches of the Oaktree debt, Oaktree was granted warrants to purchase 455,000 ADSs at $3.70 per ADS, a 15% premium to the 30-day VWAP. We determined that an obligation to issue the warrants has arisen from the time the first amendment to the loan agreement was signed; consequently, a liability for the warrants has been recognized in December 2022. The warrants were legally issued on March 8, 2023 and may be exercised within 7 years of issuance.

The exercise price of the warrants will be received in U.S. dollars, which is different to Mesoblast Limited’s functional currency of Australian dollars which gives rise to variability in the cash flow. As a result, the warrants are classified as a financial liability in accordance with IAS32 Financial Instruments: Presentation. The financial liability is recorded in warrant liability at fair value at grant date and subsequently remeasured at each reporting period with changes being recorded in the Income Statement as remeasurement of warrant liability. The warrant liabilities are considered level 3 liabilities as the determination of fair value includes various assumptions about the share prices and historical volatility as inputs.

As at March 31, 2023, and June 30, 2022 the fair value of the warrant liability was $4.5 million and $2.2 million, respectively. During the nine months ended March 31, 2023, a remeasurement loss of $1.2 million was recognized on the remeasurement of warrant liability. During the nine months ended March 31, 2022, a remeasurement gain of $3.0 million was recognized on the remeasurement of warrant liability.

(vii) Fair value of warrants

The warrants granted are not traded in an active market and therefore the fair value has been estimated by using the Black-Scholes valuation method based on the following assumptions. Key terms of the warrants are included below. The following assumptions were based on observable market conditions that existed at the issue date and as of March 31, 2023.

(in U.S. dollars, except percent data and as otherwise noted)
Assumption

As of
March 31,
2023

As of June 30, 2022

Rationale

Share Price

$3.29

$2.22

Closing share price on valuation date from external market source

Exercise Price

$3.70 to $7.26

$7.26

As per subscription agreement

Expected Term

6 to 7 years

7 years

As per subscription agreement

Dividend Yield

Based on Company’s nil dividend history

Expected Volatility

81.94%

83.22%

Based on historical volatility data for the Company

Risk Free Interest Rate

3.54%

3.08%

Based on the closing U.S treasury issued 7 year bonds on valuation date

Fair value per warrant

$1.891 to $2.425

$1.2350

Determined using Black-Scholes valuation model with the inputs above

Fair value

$4,449,819

$2,185,476

Fair value of 2,224,669 warrants of $4,449,819 as of March 31, 2023 and fair value of 1,769,669 warrants of $2,185,476 as of June 30, 2022.

Consolidated Statement of Changes in Equity (unaudited) - USD ($) $ in Thousands	Total	Issued Capital	Share Option Reserve	Investment Revaluation Reserve	Foreign Currency Translation Reserve	Warrant Reserve	Retained Earnings/ (accumulated losses)
Beginning balance at Jun. 30, 2021	$ 581,397	$ 1,163,153	$ 92,855	$ (220)	$ (39,791)	$ 12,969	$ (647,569)
Loss for the period	(69,892)						(69,892)
Other comprehensive income/(loss)	(564)			(48)	(516)
Total comprehensive profit/(loss) for the period	(70,456)			(48)	(516)		(69,892)
Contributions of equity net of transaction costs	1,928	1,928
Transactions with owners in their capacity as owners	1,928	1,928
Tax credited / (debited) to equity	(187)		(187)
Transfer of exercised options	0	228	(228)
Fair value of share-based payments	4,445		4,445
Increase (decrease) in equity	4,258	228	4,030			0
Ending balance at Mar. 31, 2022	517,127	1,165,309	96,885	(268)	(40,307)	12,969	(717,461)
Beginning balance at Jun. 30, 2021	581,397	1,163,153	92,855	(220)	(39,791)	12,969	(647,569)
Ending balance at Jun. 30, 2022	497,044	1,165,309	97,924	(542)	(39,700)	12,969	(738,916)
Beginning balance at Dec. 31, 2021	535,509	1,163,586	95,041	46	(39,974)	12,969	(696,159)
Loss for the period	(21,302)						(21,302)
Other comprehensive income/(loss)	(647)			(314)	(333)
Total comprehensive profit/(loss) for the period	(21,949)			(314)	(333)		(21,302)
Contributions of equity net of transaction costs	1,723	1,723
Transactions with owners in their capacity as owners	1,723	1,723
Tax credited / (debited) to equity	(45)		(45)
Transfer of exercised options		0	0
Fair value of share-based payments	1,889		1,889
Increase (decrease) in equity	1,844	0	1,844			0
Ending balance at Mar. 31, 2022	517,127	1,165,309	96,885	(268)	(40,307)	12,969	(717,461)
Beginning balance at Jun. 30, 2022	497,044	1,165,309	97,924	(542)	(39,700)	12,969	(738,916)
Loss for the period	(59,970)						(59,970)
Other comprehensive income/(loss)	527			275	252
Total comprehensive profit/(loss) for the period	(59,443)			275	252		(59,970)
Contributions of equity net of transaction costs	42,191	42,191
Transactions with owners in their capacity as owners	42,191	42,191
Tax credited / (debited) to equity	(172)		(172)
Transfer of exercised options		0	0
Fair value of share-based payments	2,548		2,548
Increase (decrease) in equity	2,376	0	2,376
Ending balance at Mar. 31, 2023	482,168	1,207,500	100,300	(267)	(39,448)	12,969	(798,886)
Beginning balance at Dec. 31, 2022	500,002	1,207,714	99,555	(350)	(39,600)	12,969	(780,286)
Loss for the period	(18,600)						(18,600)
Other comprehensive income/(loss)	235			83	152
Total comprehensive profit/(loss) for the period	(18,365)			83	152		(18,600)
Contributions of equity net of transaction costs	(214)	(214)
Transactions with owners in their capacity as owners	(214)	(214)
Tax credited / (debited) to equity	(46)		(46)
Fair value of share-based payments	791		791
Increase (decrease) in equity	745		745
Ending balance at Mar. 31, 2023	$ 482,168	$ 1,207,500	$ 100,300	$ (267)	$ (39,448)	$ 12,969	$ (798,886)

Financial assets and liabilities - Summary of Fair Value of Warrants (Parenthetical) (Details) - USD ($)	9 Months Ended
	Mar. 31, 2023	Jun. 30, 2022
Disclosure Of Financial Instruments [Line Items]
Issuance warrants exercised period	7 years
Fair value	$ 4,500,000	$ 2,200,000
Warrants
Disclosure Of Financial Instruments [Line Items]
Number of warrants granted to purchase american depositary shares (in shares)	2,224,669	1,769,669
Fair value	$ 4,449,819	$ 2,185,476

Equity - Summary of Warrant Reserve (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
Disclosure Of Warrant Reserve [Line Items]
Beginning balance	$ 500,002	$ 535,509	$ 497,044	$ 581,397	$ 581,397
Movement during the period	745	1,844	2,376	4,258
Ending balance	482,168	$ 517,127	482,168	517,127	497,044
Warrants
Disclosure Of Warrant Reserve [Line Items]
Beginning balance			12,969	$ 12,969	12,969
Movement during the period			0		0
Ending balance	$ 12,969		$ 12,969		$ 12,969

- Definition

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

Financial assets and liabilities - Summary of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021
Disclosure Of Financial Assets And Liabilities [Line Items]
Cash & cash equivalents	$ 48,799	$ 60,447	$ 76,760	$ 136,881
Trade & other receivables	8,393	4,403
Financial assets at fair value through other comprehensive income	2,032	1,758
Other non-current assets	2,388	1,930
Financial assets, Total	61,612	68,538
Trade and other payables	20,972	23,079
Borrowings	106,357	96,634
Contingent consideration	18,663	23,284
Warrant liability	4,450	2,185		$ 0
Financial liabilities, Total	150,442	145,182
Liabilities at amortized cost
Disclosure Of Financial Assets And Liabilities [Line Items]
Trade and other payables	20,972	23,079
Borrowings	106,357	96,634
Financial liabilities, Total	127,329	119,713
Liabilities at FVTPL
Disclosure Of Financial Assets And Liabilities [Line Items]
Contingent consideration	18,663	23,284
Warrant liability	4,450	2,185
Financial liabilities, Total	23,113	25,469
Assets at amortized cost
Disclosure Of Financial Assets And Liabilities [Line Items]
Cash & cash equivalents	48,799	60,447
Trade & other receivables	8,393	4,403
Other non-current assets	2,388	1,930
Financial assets, Total	59,580	66,780
Assets at FVOCI
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial assets at fair value through other comprehensive income	2,032	1,758
Financial assets, Total	$ 2,032	$ 1,758

Non-financial assets and liabilities - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Jun. 30, 2022
Employee benefits
Disclosure Of Non Financial Assets And Liabilities [Line Items]
Current provisions for accrued annual leave	$ 1.0	$ 1.0

Cash flow information (Tables)

9 Months Ended

Mar. 31, 2023

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 March 31, 2023	As of June 30, 2022
Cash at bank	48,396	60,034
Deposits at call	403	413
	48,799	60,447


(in U.S. dollars, in thousands)	Nine Months Ended March 31,
(b) Reconciliation of net cash flows used in operations with loss after income tax	2023	2022
Loss for the period	(59,970)	(69,892)
Add/(deduct) net loss for non-cash items as follows:
Depreciation and amortization	3,180	3,309
Foreign exchange losses/(gains)	363	10
Gain on derecognition of right-of-use assets	(76)	—
Finance costs	15,670	12,936
Remeasurement of contingent consideration	(7,307)	(601)
Remeasurement of warrant liabilities	1,229	(3,048)
Equity settled share-based payment	2,548	4,445
Deferred tax benefit	(172)	(187)
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables	(734)	(1,093)
Decrease/(increase) in prepayments	826	901
Decrease/(increase) in tax incentive recoverable	(3,113)	—
Increase/(decrease) in trade creditors and accruals	605	691
Increase/(decrease) in provisions	(40)	641
Net cash outflows used in operations	(46,991)	(51,888)

Loss before income tax - Summary of Loss Before Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Revenue
Commercialization revenue	$ 1,939	$ 2,011	$ 5,362	$ 6,815
Milestone revenue	0	0	0	1,172
Total Revenue	1,939	2,011	5,362	7,987
Clinical trial and research & development	(1,873)	(1,592)	(6,370)	(7,823)
Manufacturing production & development	(6,137)	(6,366)	(17,422)	(20,855)
Employee benefits
Salaries and employee benefits	(4,346)	(4,522)	(14,188)	(15,192)
Defined contribution superannuation expenses	(99)	(98)	(285)	(313)
Equity settled share-based payment transactions	(791)	(1,889)	(2,548)	(4,445)
Total Employee benefits	(5,236)	(6,509)	(17,021)	(19,950)
Depreciation and amortization of non-current assets
Plant and equipment depreciation	(225)	(283)	(790)	(852)
Right of use asset depreciation	(394)	(442)	(1,269)	(1,282)
Intellectual property amortization	(372)	(389)	(1,121)	(1,175)
Total Depreciation and amortization of non-current assets	(991)	(1,114)	(3,180)	(3,309)
Other Management & administration expenses
Overheads & administration	(2,434)	(2,374)	(7,411)	(7,442)
Consultancy	(864)	(737)	(2,831)	(2,514)
Legal, patent and other professional fees	(1,306)	(1,926)	(2,719)	(4,647)
Intellectual property expenses (excluding the amount amortized above)	(878)	(789)	(2,236)	(2,212)
Total Other Management & administration expenses	(5,482)	(5,826)	(15,197)	(16,815)
Fair value remeasurement of contingent consideration
Remeasurement of contingent consideration	1,318	672	7,307	601
Total Fair value remeasurement of contingent consideration	1,318	672	7,307	601
Fair value remeasurement of warrant liability
Remeasurement of warrant liability	(517)	896	(1,229)	3,048
Total Fair value remeasurement of warrant liability	(517)	896	(1,229)	3,048
Other operating income and expenses
Foreign exchange gains/(losses)	(86)	336	(339)	(10)
Foreign withholding tax paid	0	56	0	(3)
Derecognition of right-of-use asset	76	0	76	0
Research and development tax incentive(2)	3,113	0	3,113	0
Interest revenue	214	0	428	1
Total Other operating income and expenses	3,317	392	3,278	(12)
Finance (costs)/gains
Remeasurement of borrowing arrangements	(87)	387	(1,317)	(450)
Interest expense	(4,897)	(4,298)	(14,353)	(12,501)
Total Finance costs	(4,984)	(3,911)	(15,670)	(12,951)
Loss before income tax	$ (18,646)	$ (21,347)	$ (60,142)	$ (70,079)

Basis of preparation (Policies)	9 Months Ended
Basis of preparation (Policies)	Mar. 31, 2023
Basis Of Preparation [Abstract]
Description of accounting policy for basis of preparation explanatory	Basis of preparation Mesoblast Limited is a for-profit entity for the purpose of preparing the financial statements. The condensed consolidated 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, 2022. In the opinion of management, the interim financial data includes all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods. (i) Going concern The Group held total cash reserves of $48.8 million as of March 31, 2023. On April 25, 2023 the Group announced completion of a global private placement primarily to existing major shareholders raising approximately $40.0 million in proceeds, net of transaction costs. The Group continues its focus on maintaining tight control of net cash usage for operating activities, which were $47.0 million for the nine months ended March 31, 2023, a reduction of 9% compared to the prior period. As the Group prepares for a potential first product approval by the United States Food and Drug Administration (“FDA”), and in line with its commercial launch plans, additional inflows from strategic partnerships, product specific financing, capital markets and/or existing loan arrangements will be required to meet the Group’s projected expenditure consistent with its business strategy over the next 12 months. As a result of these matters, there is material uncertainty related to events or conditions that may cast significant doubt (or raise substantial doubt as contemplated by Public Company Accounting Oversight Board (“PCAOB”) standards) on the Group’s ability to continue as a going concern and, therefore, that the Group may be unable to realize its assets and discharge its liabilities in the normal course of business. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. (ii) Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets at fair value through other comprehensive income, financial assets and liabilities (including derivative instruments) at fair value through profit or loss, certain classes of property, plant and equipment and investment property. (iii) New and amended standards adopted by the Group There were no new or amended standards adopted by the Group in the nine months ended March 31, 2023. These interim financial statements follow the same accounting policies as compared to the June 30, 2022 consolidated financial statements and related notes as filed with the Australian Securities Exchange and the Securities and Exchange Commission. (iv) 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 March 31, 2023 reporting period that are expected to materially impact the Group. (v) Use of estimates The preparation of these consolidated financial statements requires the Group to make estimates and judgments that affect the reported amounts of assets, liabilities, income and expenses and related disclosures. On an ongoing basis, the Group evaluates its significant accounting policies and estimates. Estimates are based on historical experience and on various market-specific and other relevant assumptions that the Group believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. (vi) Impact of COVID-19 Estimates are assessed each period and updated to reflect current information, such as the economic considerations related to the after effects of the COVID-19 pandemic could have on the Group’s significant accounting estimates. The Group is having to account in its product-launch plans for the after effects of the COVID-19 pandemic on future potential customers, such as transplant centers, which have been and may continue to be impacted by the pandemic with respect to patient care, operations/staffing, financials, and health and safety protocols. These impacts change the way (channel, message, frequency) that Mesoblast will have to engage with these entities. Due to the effects of the COVID-19 pandemic, and recent geopolitical instability, countries in which the Group has operations have experienced some challenges in the ability of the Group’s suppliers and contractors to source, supply or acquire raw materials or components needed for its manufacturing process and supply chain. As a result, the manufacturing and commercialization of remestemcel-L and other product candidates could be adversely affected.

Financial assets and liabilities - Summary of Changes in Fair Value of Level 3 Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
Disclosure Of Financial Instruments [Line Items]
Remeasurement	$ (1,318)	$ (672)	$ (7,307)	$ (601)
Level 3
Disclosure Of Financial Instruments [Line Items]
Opening balance			23,284	$ 25,409	$ 25,409
Amount used during the period					(1,212)
Remeasurement			(7,307)		(913)
Reclassification during the period			2,686
Closing balance	$ 18,663		$ 18,663		$ 23,284

(Losses)/earnings per share - Summary of (Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
(a) Basic (losses) per share
From continuing operations attributable to the ordinary equity holders of the company (in dollars per share)	$ (0.0253)	$ (0.0328)	$ (0.0829)	$ (0.1078)
Total basic (losses) per share attributable to the ordinary equity holders of the company (in dollars per share)	(0.0253)	(0.0328)	(0.0829)	(0.1078)
(b) Diluted (losses) per share
From continuing operations attributable to the ordinary equity holders of the company (in dollars per share)	(0.0253)	(0.0328)	(0.0829)	(0.1078)
Total basic (losses) per share attributable to the ordinary equity holders of the company (in dollars per share)	$ (0.0253)	$ (0.0328)	$ (0.0829)	$ (0.1078)
(c) Reconciliation of (losses) used in calculating (losses) per share
From continuing operations	$ (18,600)	$ (21,302)	$ (59,970)	$ (69,892)
Used in calculating basic (losses) per share	(18,600)	(21,302)	(59,970)	(69,892)
(Losses) attributable to the ordinary equity holders of the company used in calculating diluted losses per share	$ (18,600)	$ (21,302)	$ (59,970)	$ (69,892)
Weighted average number of ordinary shares used as the denominator in calculating basic losses per share (in shares)	736,578,315	649,559,952	722,977,342	648,563,467
Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted losses per share (in shares)	736,578,315	649,559,952	722,977,342	648,563,467

Financial assets and liabilities - Summary of Valuation Processes of Contingent Consideration at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Disclosure Of Financial Assets And Liabilities [Abstract]
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets	$ 17,877	$ 17,827
Fair value of royalty payments from commercialization of the intellectual property acquired	786	5,457
Contingent Consideration	$ 18,663	$ 23,284

Non-financial assets and liabilities - Summary of Provisions (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Disclosure Of Other Provisions [Line Items]
Current	$ 17,576	$ 17,906
Non-current	8,167	12,523
Total	25,743	30,429
Contingent consideration
Disclosure Of Other Provisions [Line Items]
Current	10,543	10,823
Non-current	8,120	12,461
Total	18,663	23,284
Employee benefits
Disclosure Of Other Provisions [Line Items]
Current	3,283	3,333
Non-current	47	62
Total	3,330	3,395
Provision for license agreements
Disclosure Of Other Provisions [Line Items]
Current	3,750	3,750
Non-current	0	0
Total	$ 3,750	$ 3,750

Consolidated Statement of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Statement of comprehensive income [abstract]
Loss for the period	$ (18,600)	$ (21,302)	$ (59,970)	$ (69,892)
Items that may be reclassified to profit and loss
Exchange differences on translation of foreign operations	152	(333)	252	(516)
Items that will not be reclassified to profit and loss
Financial assets at fair value through other comprehensive income	83	(314)	275	(48)
Other comprehensive (loss)/income for the period, net of tax	235	(647)	527	(564)
Total comprehensive losses attributable to the owners of Mesoblast Limited	$ (18,365)	$ (21,949)	$ (59,443)	$ (70,456)

Income tax benefit/(expense)

9 Months Ended

Mar. 31, 2023

Major components of tax expense (income) [abstract]

Income tax benefit/(expense)


	Three Months Ended March 31,		Nine Months Ended March 31,
(in U.S. dollars, in thousands)	2023	2022	2023	2022
Income tax (benefit)/expense
Current tax
Current tax	—	—	—	—
Total current tax (benefit)/expense	—	—	—	—

Deferred tax
(Increase)/decrease in deferred tax assets	15	(127)	15	(314)
(Decrease)/increase in deferred tax liabilities	(61)	82	(187)	127
Total deferred tax (benefit)/expense	(46)	(45)	(172)	(187)
Income tax (benefit)/expense	(46)	(45)	(172)	(187)

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.


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Deferred tax assets not brought to account
Unused tax losses
Potential tax benefit at local tax rates	121,389	111,283
Other temporary differences
Potential tax benefit at local tax rates	12,638	11,046
Other tax credits
Potential tax benefit at local tax rates	3,220	3,220
	137,247	125,549

(Losses)/earnings per share

9 Months Ended

Mar. 31, 2023

Earnings per share [abstract]

(Losses)/earnings per share


	Three Months Ended		Nine Months Ended
	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022
	Cents	Cents	Cents	Cents
(Losses) per share
(in cents)
(a) Basic (losses) per share
From continuing operations attributable to the ordinary equity holders of the company	(2.53)	(3.28)	(8.29)	(10.78)
Total basic (losses) per share attributable to the ordinary equity holders of the company	(2.53)	(3.28)	(8.29)	(10.78)

(b) Diluted (losses) per share
From continuing operations attributable to the ordinary equity holders of the company	(2.53)	(3.28)	(8.29)	(10.78)
Total diluted (losses) per share attributable to the ordinary equity holders of the company	(2.53)	(3.28)	(8.29)	(10.78)

(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	(18,600)	(21,302)	(59,970)	(69,892)

Diluted (losses) per share
(Losses) from continuing operations attributable to the ordinary equity holders of the company:
Used in calculating basic (losses) per share	(18,600)	(21,302)	(59,970)	(69,892)
(Losses) attributable to the ordinary equity holders of the company used in calculating diluted losses per share	(18,600)	(21,302)	(59,970)	(69,892)

	Three Months Ended		Nine Months Ended
	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022
	(In Shares)	(In Shares)	(In Shares)	(In Shares)
Weighted average number of ordinary shares used as the denominator in calculating basic losses per share	736,578,315	649,559,952	722,977,342	648,563,467
Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted losses per share	736,578,315	649,559,952	722,977,342	648,563,467

Options granted to employees and warrants are considered to be potential ordinary shares. These securities have been excluded from the determination of basic losses per share in the three and nine months ended March 31, 2023 and 2022. Shares that may be paid as contingent consideration have also been excluded from basic losses per share. They have been excluded from the calculation of diluted losses per share because they are anti-dilutive for the three and nine months ended March 31, 2023 and 2022.

Cash flow information

9 Months Ended

Mar. 31, 2023

Statement of cash flows [abstract]

Cash flow information


(in U.S. dollars, in thousands) (a) Reconciliation of cash and cash equivalents	As of March 31, 2023	As of June 30, 2022
Cash at bank	48,396	60,034
Deposits at call	403	413
	48,799	60,447


(in U.S. dollars, in thousands)	Nine Months Ended March 31,
(b) Reconciliation of net cash flows used in operations with loss after income tax	2023	2022
Loss for the period	(59,970)	(69,892)
Add/(deduct) net loss for non-cash items as follows:
Depreciation and amortization	3,180	3,309
Foreign exchange losses/(gains)	363	10
Gain on derecognition of right-of-use assets	(76)	—
Finance costs	15,670	12,936
Remeasurement of contingent consideration	(7,307)	(601)
Remeasurement of warrant liabilities	1,229	(3,048)
Equity settled share-based payment	2,548	4,445
Deferred tax benefit	(172)	(187)
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables	(734)	(1,093)
Decrease/(increase) in prepayments	826	901
Decrease/(increase) in tax incentive recoverable	(3,113)	—
Increase/(decrease) in trade creditors and accruals	605	691
Increase/(decrease) in provisions	(40)	641
Net cash outflows used in operations	(46,991)	(51,888)

Equity - Summary of Movements of Shares in Share Trust (Details)	9 Months Ended
	Mar. 31, 2023 USD ($) shares	Mar. 31, 2022 USD ($) shares
Disclosure Of Movements Of Shares In Share Trust [Line Items]
Exercise of share options		$ 0
Mesoblast Employee Share Trust
Disclosure Of Movements Of Shares In Share Trust [Line Items]
Opening balance (in shares) \| shares	542,903	771,983
Opening balance	$ 0	$ 0
Exercise of share options (in shares) \| shares	0	(229,080)
Exercise of share options	$ 0	$ 0
Ending balance (in shares) \| shares	542,903	542,903
Ending balance	$ 0	$ 0

Equity - Summary of Movements in Ordinary Share Capital (Parenthetical) (Details) - Private Placement - $ / shares	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2021
Disclosure Of Movements Of Shares In Share Trust [Line Items]
Number of shares issued and fully paid (in shares)	86,666,667
Exercise price (in australian dollars per share)	$ 0.75	$ 2.30
Discounted percentage on issuance of equity	5.00%

Financial assets and liabilities - Additional Information (Details) - USD ($)					1 Months Ended			9 Months Ended
	Dec. 22, 2022	Dec. 21, 2022	Nov. 19, 2021	Jun. 29, 2018	Dec. 31, 2022	Nov. 30, 2021	Mar. 31, 2018	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings								$ 106,357,000		$ 96,634,000
Issuance warrants exercised period								7 years
Financial assets								$ 61,612,000		68,538,000
Financial liabilities								150,442,000		145,182,000
Warrants fair value at issue date	$ 1,036,000		$ 8,081,000
Fair value								4,500,000		2,200,000
Gain (loss) on remeasurement of warrant liability								(1,200,000)	$ (3,000,000)
Level 1
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial assets								0		0
Financial liabilities								0		0
Level 2
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial assets								0		0
Financial liabilities								$ 0		$ 0
Level 3 \| Unlisted Equity Securities
Disclosure Of Financial Assets And Liabilities [Line Items]
Percentage of assets measured at fair value								100.00%		100.00%
Gross debt - variable interest rates
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings								$ 0		$ 0
Gross debt - fixed interest rates
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings								$ 114,608,000		$ 106,905,000
Contingent Consideration Provision \| Level 3
Disclosure Of Financial Assets And Liabilities [Line Items]
Percentage of liabilities measured at fair value								100.00%		100.00%
Oaktree Capital Management, L.P.
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings principal amount						$ 90,000,000
Borrowings term						5 years
Borrowings			$ 60,000,000
Borrowings, interest period						3 years
Borrowings, interest rate						9.75%
Amortization period						2 years
Percentage of principal amount payable over two year						40.00%
Percentage of premium for volume-weighted average price		15.00%	15.00%		15.00%
Date of warrants legally issued			Jan. 11, 2022
Issuance warrants exercised period		7 years	7 years		7 years
Remeasurement of borrowing arrangements within finance gains (loss)								$ (1,500,000)	100,000
Finance costs gains (loss) on remeasurement due to additional warrants issued								1,000,000
Finance costs gains (loss) on adjustment of carrying amount on financial liability								(500,000)
Minimum unrestricted cash balance								$ 35,000,000
Oaktree Capital Management, L.P. \| American Depositary Shares
Disclosure Of Financial Assets And Liabilities [Line Items]
Exercise price (in australian dollars per share)		$ 3.70	$ 7.26		$ 3.70
Oaktree Capital Management, L.P. \| Warrants
Disclosure Of Financial Assets And Liabilities [Line Items]
Number of warrants granted to purchase american depositary shares (in shares)		455,000	1,769,669		455,000
Oaktree Capital Management, L.P. \| Tranche One
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings			$ 60,000,000			$ 60,000,000
Oaktree Capital Management, L.P. \| Tranche Two
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings		$ 30,000,000			$ 30,000,000	$ 30,000,000
Oaktree Capital Management, L.P. \| Quarterly Payments
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings, interest rate						8.00%
Oaktree Capital Management, L.P. \| Unpaid Interest
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings, interest rate						1.75%
Hercules Capital, Inc.
Disclosure Of Financial Assets And Liabilities [Line Items]
Remeasurement of borrowing arrangements within finance gains (loss)									(900,000)
Finance costs gains (loss) on remeasurement due to additional warrants issued									1,300,000
Finance costs gains (loss) on adjustment of carrying amount on financial liability									400,000
Hercules Capital, Inc. \| Gross debt - variable interest rates
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings principal amount							$ 75,000,000
Borrowings term							4 years
Hercules Capital, Inc. \| Gross debt - variable interest rates \| Terms of Loan Agreement
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings, interest rate								9.70%
Hercules Capital, Inc. \| Tranche One \| Gross debt - variable interest rates
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings							$ 35,000,000
Hercules Capital, Inc. \| Tranche Two \| Gross debt - variable interest rates
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings							$ 15,000,000
NovaQuest Capital Management, L.L.C.
Disclosure Of Financial Assets And Liabilities [Line Items]
Remeasurement of borrowing arrangements within finance gains (loss)								$ 200,000	$ 400,000
Percentage of entity's revenue, annual payment cap threshold				25.00%
NovaQuest Capital Management, L.L.C. \| Gross debt - fixed interest rates
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings principal amount				$ 40,000,000
Borrowings term				8 years
Borrowings, interest period				4 years
Borrowings, interest rate				15.00%
Amortization period				4 years
NovaQuest Capital Management, L.L.C. \| Tranche One \| Gross debt - fixed interest rates
Disclosure Of Financial Assets And Liabilities [Line Items]
Borrowings				$ 30,000,000
Top of Range
Disclosure Of Financial Assets And Liabilities [Line Items]
Trade receivables settlement period								60 days

Equity - Schedule of Share Capital (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021
Contributed equity
Total Equity	$ 482,168	$ 500,002	$ 497,044	$ 517,127	$ 535,509	$ 581,397
Ordinary Shares
Contributed equity
Number of warrants (in shares)	737,121,218		650,454,551	650,454,551		648,696,070
Less: Treasury Shares (in shares)	(542,903)			(542,903)
Total Contributed Equity (in shares)	736,578,315			649,911,648
Ordinary shares	$ 1,207,500			$ 1,165,309
Less: Treasury Shares	0			0
Total Equity	$ 1,207,500		$ 1,165,309	$ 1,165,309		$ 1,163,153

- Definition

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

Basis of preparation - Additional Information (Details) $ in Thousands, XUA in Millions		9 Months Ended
	Apr. 25, 2023 USD ($)	Mar. 31, 2023 XUA	Mar. 31, 2023 USD ($)	Aug. 11, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Nov. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Cash & cash equivalents			$ 48,799		$ 60,447	$ 76,760		$ 136,881
Maximum amount in cash outflows from operating activities \| XUA		XUA 47.0
Percentage of reduction in cash outflows from operating activities		9.00%
Global Private Placement
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Proceeds from issue of ordinary shares	$ 40,000
Oaktree Capital Management, L.P.
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Borrowings principal amount							$ 90,000
Refinancing and Expansion of Senior Debt Facility \| Oaktree Capital Management, L.P.
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Cash & cash equivalents				$ 42,600

Non-financial assets and liabilities - Summary of Deferred Tax Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Deferred tax assets
Tax losses	$ 78,640	$ 80,411
Other temporary differences	9,415	7,831
Total deferred tax assets	88,055	88,242
Deferred tax liabilities
Intangible assets	88,055	88,242
Total deferred tax liabilities	88,055	88,242
Net deferred tax liabilities	$ 0	$ 0

Income tax benefit/(expense) (Tables)

9 Months Ended

Mar. 31, 2023

Major components of tax expense (income) [abstract]

Summary of Income Tax Expense/(Benefit)


	Three Months Ended March 31,		Nine Months Ended March 31,
(in U.S. dollars, in thousands)	2023	2022	2023	2022
Income tax (benefit)/expense
Current tax
Current tax	—	—	—	—
Total current tax (benefit)/expense	—	—	—	—

Deferred tax
(Increase)/decrease in deferred tax assets	15	(127)	15	(314)
(Decrease)/increase in deferred tax liabilities	(61)	82	(187)	127
Total deferred tax (benefit)/expense	(46)	(45)	(172)	(187)
Income tax (benefit)/expense	(46)	(45)	(172)	(187)

Summary of Deferred Tax Assets Not Brought to Account


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Deferred tax assets not brought to account
Unused tax losses
Potential tax benefit at local tax rates	121,389	111,283
Other temporary differences
Potential tax benefit at local tax rates	12,638	11,046
Other tax credits
Potential tax benefit at local tax rates	3,220	3,220
	137,247	125,549

Financial risk management - Summary of Borrowing to Price Rate Changes (Details) XUA in Thousands, $ in Thousands	Mar. 31, 2023 USD ($)	Mar. 31, 2023 XUA	Jun. 30, 2022 USD ($)	Jun. 30, 2022 XUA
Disclosure of Financial Risk Management [Line Items]
Current borrowings \| XUA		XUA 7,314		XUA 5,017
Borrowings	$ 99,043	XUA 99,043	$ 91,617	XUA 91,617
Borrowings	106,357		96,634
Borrowings	106,357		96,634
Commodity price risk
Disclosure of Financial Risk Management [Line Items]
Current borrowings	$ 1,990		$ 372
Percent of current borrowings	2.00%	2.00%	0.00%	0.00%
Borrowings	$ 52,821		$ 47,898
Percent of non-current borrowings	50.00%	50.00%	50.00%	50.00%
Borrowings	$ 54,811		$ 48,270
Percentage of price rate changes In borrowings	52.00%	52.00%	50.00%	50.00%
Borrowings	$ 54,811		$ 48,270
Percent of total borrowings	52.00%	52.00%	50.00%	50.00%

Financial assets and liabilities (Tables)

9 Months Ended

Mar. 31, 2023

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 March 31, 2023
Cash & cash equivalents	5(a)	—	—	48,799	48,799
Trade & other receivables	5(b)	—	—	8,393	8,393
Financial assets at fair value through other comprehensive income		2,032	—	—	2,032
Other non-current assets		—	—	2,388	2,388
		2,032	—	59,580	61,612
As of June 30, 2022
Cash & cash equivalents	5(a)	—	—	60,447	60,447
Trade & other receivables	5(b)	—	—	4,403	4,403
Financial assets at fair value through other comprehensive income		1,758	—	—	1,758
Other non-current assets		—	—	1,930	1,930
		1,758	—	66,780	68,538

(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 March 31, 2023
Trade and other payables	5(c)	—	—	20,972	20,972
Borrowings	5(d)	—	—	106,357	106,357
Contingent consideration	5(e)(iii)	—	18,663	—	18,663
Warrant liability	5(e)(vi)	—	4,450	—	4,450
		—	23,113	127,329	150,442
As of June 30, 2022
Trade and other payables	5(c)	—	—	23,079	23,079
Borrowings	5(d)	—	—	96,634	96,634
Contingent consideration	5(e)(iii)	—	23,284	—	23,284
Warrant liability	5(e)(vi)	—	2,185	—	2,185
		—	25,469	119,713	145,182

(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 March 31, 2023	As of June 30, 2022
Cash at bank	48,396	60,034
Deposits at call(1)	403	413
	48,799	60,447


(1)As of March 31, 2023 and June 30, 2022, 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 and other receivables


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Trade debtors	1,912	2,224
Tax incentives recoverable	3,113	—
Foreign withholding tax recoverable	471	471
U.S. Tax credits	1,473	1,473
Net investment in sublease	191	—
Interest receivables	13	—
Other recoverable taxes (Goods and services tax and value-added tax)	200	235
Other asset	1,020	—
Trade and other receivables	8,393	4,403

(ii) Prepayments


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Clinical trial research and development expenditure	952	1,313
Prepaid insurance and subscriptions	2,803	2,420
Other	418	1,254
Prepayments	4,173	4,987

Summary of Trade and Other Payables

c. Trade and other payables


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Trade payables and other payables	20,972	23,079
Trade and other payables	20,972	23,079

Summary of Borrowings

d. Borrowings


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Borrowings
Secured liabilities:
Borrowing arrangements	81,919	81,919
Less: transaction costs	(8,622)	(8,247)
Amortization of carrying amount, net of payments made	33,060	22,962
	106,357	96,634

(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Borrowings
Current
Borrowings - NovaQuest	1,990	372
Borrowings - Oaktree	5,324	4,645
	7,314	5,017
Non-current
Borrowings - NovaQuest	52,821	47,898
Borrowings - Oaktree	46,222	43,719
	99,043	91,617
	106,357	96,634

Summary of Net Debt

(iii) Net Debt Reconciliation


(in U.S. dollars, in thousands)	As of March 31, 2023	As of June 30, 2022
Cash and cash equivalents	48,799	60,447
Borrowings	(106,357)	(96,634)
Lease liabilities	(8,251)	(10,271)
Warrant liability	(4,450)	(2,185)
Net Debt(1)	(70,259)	(48,643)

Cash and cash equivalents	48,799	60,447
Gross debt - fixed interest rates	(114,608)	(106,905)
Gross debt - variable interest rates	—	—
Warrant liability	(4,450)	(2,185)
Net Debt(1)	(70,259)	(48,643)

(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)	Borrowings	Leases	Warrant liability	Sub-total	Cash and cash equivalents	Total
Net Debt as at June 30, 2022	(96,634)	(10,271)	(2,185)	(109,090)	60,447	(48,643)
Cash Flows(1)	3,709	2,194	—	5,903	(11,456)	(5,553)
Remeasurement adjustments	(281)	—	(1,229)	(1,510)	—	(1,510)
Other Changes(2)	(13,151)	(337)	—	(13,488)	—	(13,488)
Issuance of warrants	—	—	(1,036)	(1,036)	—	(1,036)
Foreign exchange adjustments	—	163	—	163	(192)	(29)
Net Debt as at March 31, 2023	(106,357)	(8,251)	(4,450)	(119,058)	48,799	(70,259)

(1)Cash flows include the payments of borrowings, lease liabilities and interest which are presented as financing cash flows in the statement of cash flows.

(2)Other changes include modification of leases and accrued interest expenses for borrowings and leases.

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


As of March 31, 2023
(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		—	—	2,032	2,032
Total Financial Assets		—	—	2,032	2,032

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)	—	—	18,663	18,663
Warrant liabilities	5(e)(vi)	—	—	4,450	4,450
Total Financial Liabilities		—	—	23,113	23,113


As of June 30, 2022
(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		—	—	1,758	1,758
Total Financial Assets		—	—	1,758	1,758

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)	—	—	23,284	23,284
Warrant liabilities	5(e)(vi)	—	—	2,185	2,185
Total Financial Liabilities		—	—	25,469	25,469

Summary of Changes in Fair Value of Level 3 Instruments

The following table presents the changes in level 3 instruments for the nine months ended March 31, 2023 and the year ended June 30, 2022.


(in U.S. dollars, in thousands)			Contingent consideration provision
Opening balance - July 1, 2021			25,409
Amount used during the period			(1,212)
Charged/(credited) to consolidated income statement:
Remeasurement(1)			(913)
Closing balance - June 30, 2022			23,284

Opening balance - July 1, 2022			23,284
Reclassification during the period			2,686
Charged/(credited) to consolidated income statement:
Remeasurement(2)			(7,307)
Closing balance - March 31, 2023			18,663


(1)In the year ended June 30, 2022 a gain of $0.9 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This remeasurement was a net result of changing the key assumptions of the contingent consideration valuation such as developmental timelines, market growth 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 nine months ended March 31, 2023 a gain of $7.3 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This remeasurement was a net result of changing key assumptions of the contingent consideration valuation such as probability of payment, development timelines and the increase in valuation as the time period shortens between the valuation date and the potential settlement dates of contingent consideration.

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)
Description

Fair value
as of
March 31,
2023

Fair value
as of
June 30,
2022

Valuation
technique

Unobservable

inputs(1)

Nine Months Ended
March 31,
2023

Year Ended
June 30,
2022

Relationship of
unobservable inputs to
fair value

Contingent consideration provision

18,663

23,284

Discounted cash flows

Risk adjusted discount rate

11%-13%

(12.5%)

11%-13%

(12.5%)

Nine months ended March 31, 2023: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.01%.

Year ended 30 June, 2022: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.2%.

Expected unit sales price

Various

Nine months ended March 31, 2023: A change in the price assumptions by 10% would increase/decrease the fair value by 0.2%.

Year ended 30 June, 2022: A change in the price assumptions by 10% would increase/decrease the fair value by 2%.

Expected sales volumes

Various

Nine months ended March 31, 2023: A change in the volume assumptions by 10% would increase/decrease the fair value by 0.2%.

Year ended 30 June, 2022: A change in the volume assumptions by 10% would increase/decrease the fair value by 2%.

Probability of success and payment

Various

Nine months ended March 31, 2023: A change in the probability of success and payment assumptions by 10% and 20% would increase/decrease the fair value by 10.1% and 20.2%, respectively.

Year ended 30 June, 2022: A change in the probability of success and payment assumptions by 10% and 20% would increase/decrease the fair value by 8.6% and 17.2%, respectively.

(1)There were no significant inter-relationships between unobservable inputs that materially affect fair values.

Disclosure of Detailed Information About Valuation Processes of Contingent Consideration at Fair Value Explanatory


	As of March 31,	As of June 30,
The fair value of contingent consideration (in U.S. dollars, in thousands)	2023	2022
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets	17,877	17,827
Fair value of royalty payments from commercialization of the intellectual property acquired	786	5,457
	18,663	23,284

Summary of Warrant Liability


(in U.S. dollars, in thousands)	As of March 31,	As of June 30,
Warrant liability	2023	2022
Opening balance	2,185	—
Warrants fair value at grant date - November 19, 2021	—	8,081
Warrants fair value at grant date - December 22, 2022	1,036	—
Remeasurement of warrant liability	1,229	(5,896)
Closing Balance	4,450	2,185

Summary of Fair Value of Warrants

The following assumptions were based on observable market conditions that existed at the issue date and as of March 31, 2023.

(in U.S. dollars, except percent data and as otherwise noted)
Assumption

As of
March 31,
2023

As of June 30, 2022

Rationale

Share Price

$3.29

$2.22

Closing share price on valuation date from external market source

Exercise Price

$3.70 to $7.26

$7.26

As per subscription agreement

Expected Term

6 to 7 years

7 years

As per subscription agreement

Dividend Yield

Based on Company’s nil dividend history

Expected Volatility

81.94%

83.22%

Based on historical volatility data for the Company

Risk Free Interest Rate

3.54%

3.08%

Based on the closing U.S treasury issued 7 year bonds on valuation date

Fair value per warrant

$1.891 to $2.425

$1.2350

Determined using Black-Scholes valuation model with the inputs above

Fair value

$4,449,819

$2,185,476

Fair value of 2,224,669 warrants of $4,449,819 as of March 31, 2023 and fair value of 1,769,669 warrants of $2,185,476 as of June 30, 2022.

Financial assets and liabilities - Summary of Fair Value of Warrants (Details)	9 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) Year $ / shares	Jun. 30, 2022 USD ($) Year $ / shares
Disclosure Of Financial Instruments [Line Items]
Fair value \| $	$ 4,500,000	$ 2,200,000
Warrants
Disclosure Of Financial Instruments [Line Items]
Share Price	$ 3.29	$ 2.22
Exercise price (in dollars per share)		$ 7.26
Expected Term \| Year		7
Dividend Yield	0.00%	0.00%
Expected Volatility	81.94%	83.22%
Risk Free Interest Rate	3.54%	3.08%
Fair value per warrant (in dollars per share)		$ 1.2350
Fair value \| $	$ 4,449,819	$ 2,185,476
Warrants \| Minimum
Disclosure Of Financial Instruments [Line Items]
Exercise price (in dollars per share)	$ 3.70
Expected Term \| Year	6
Fair value per warrant (in dollars per share)	$ 1.891
Warrants \| Maximum
Disclosure Of Financial Instruments [Line Items]
Exercise price (in dollars per share)	$ 7.26
Expected Term \| Year	7
Fair value per warrant (in dollars per share)	$ 2.425

Financial assets and liabilities - Summary of Net Debt Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Disclosure Of Financial Assets And Liabilities [Abstract]
Borrowings at beginning of period		$ (96,634)
Leases at beginning of period		(10,271)
Warrant liability at beginning of period		(2,185)	$ 0
Sub-total at beginning of period		(109,090)
Cash and cash equivalents at beginning of period		60,447	136,881
Net debt total at beginning of period		(48,643)
Cash Flows, Borrowings		3,709
Cash Flows, Leases		2,194
Cash Flows, Warrants liability		0
Cash Flows, Sub-total		5,903
Cash Flows, Cash and cash equivalents		(11,456)	(59,727)
Cash Flows, Total		(5,553)
Remeasurement adjustments, Borrowings		(281)
Remeasurement adjustments, Warrant liability		(1,229)
Remeasurement adjustments		(1,510)
Other changes, Borrowings		(13,151)
Other Changes, Leases		(337)
Other Changes		(13,488)
Issuance of warrants, Warrant liability		(1,036)
Issuance Of Warrants	$ 0	(1,036)
Foreign exchange adjustments, Leases		163
Foreign exchange adjustments, Warrant liability		0
Foreign exchange adjustments, Sub-total		163
Foreign exchange adjustments, cash and cash equivalents		(192)	(394)
Foreign exchange adjustments, Total		(29)
Borrowings at end of period		(106,357)
Leases at end of period		(8,251)
Warrant liability at end of period		(4,450)
Sub-total at end of period		(119,058)
Cash and cash equivalents at end of period	$ 76,760	48,799	$ 76,760
Net debt total at end of period		$ (70,259)

Events after reporting period (Details) $ in Millions	Apr. 25, 2023 USD ($)
Global Private Placement
Disclosure of non-adjusting events after reporting period [line items]
Proceeds from issue of ordinary shares	$ 40.0

Segment information	9 Months Ended
Segment information	Mar. 31, 2023
Disclosure of operating segments [abstract]
Segment information	Segment informationOperating 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.

Significant changes in the current reporting period - Additional Information (Details) $ / shares in Units, $ in Thousands, $ in Millions			1 Months Ended			9 Months Ended
	Dec. 21, 2022 USD ($) $ / shares shares	Nov. 19, 2021 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Aug. 31, 2022 USD ($)	Aug. 31, 2022 AUD ($)	Mar. 31, 2023 USD ($)	Aug. 11, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Nov. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)
Disclosure Of Significant Changes In Current Reporting Period [Line Items]
Borrowings						$ 106,357		$ 96,634
Issuance warrants exercised period						7 years
Cash & cash equivalents						$ 48,799		$ 60,447	$ 76,760		$ 136,881
Oaktree Capital Management, L.P.
Disclosure Of Significant Changes In Current Reporting Period [Line Items]
Borrowings		$ 60,000
Percentage of premium for volume-weighted average price	15.00%	15.00%	15.00%
Issuance warrants exercised period	7 years	7 years	7 years
Oaktree Capital Management, L.P. \| Refinancing and Expansion of Senior Debt Facility
Disclosure Of Significant Changes In Current Reporting Period [Line Items]
Payment made for global private placement				$ 45,000	$ 65.0
Cash & cash equivalents							$ 42,600
Oaktree Capital Management, L.P. \| American Depositary Shares
Disclosure Of Significant Changes In Current Reporting Period [Line Items]
Exercise price (in australian dollars per share) \| $ / shares	$ 3.70	$ 7.26	$ 3.70
Oaktree Capital Management, L.P. \| Warrants
Disclosure Of Significant Changes In Current Reporting Period [Line Items]
Number of warrants granted to purchase american depositary shares (in shares) \| shares	455,000	1,769,669	455,000
Oaktree Capital Management, L.P. \| Tranche Two
Disclosure Of Significant Changes In Current Reporting Period [Line Items]
Borrowings	$ 30,000		$ 30,000							$ 30,000

Non-financial assets and liabilities - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2022
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	$ 578,652	$ 580,546
Additions/(Reversals)	0	(450)
Exchange differences	0	75
Amortization charge	(1,121)	(1,519)
Closing net book amount	577,531	578,652
Cost
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	651,138
Closing net book amount	651,126	651,138
Accumulated amortization
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	(10,567)
Closing net book amount	(11,676)	(10,567)
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	1,632	2,072
Additions/(Reversals)	0	(450)
Exchange differences	0	74
Amortization charge	(30)	(64)
Closing net book amount	1,602	1,632
Acquired licenses to patents \| Cost
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	2,987
Closing net book amount	2,975	2,987
Acquired licenses to patents \| Accumulated amortization
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	(1,355)
Closing net book amount	(1,373)	(1,355)
In-process research and development acquired
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	427,779	427,779
Exchange differences	0
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	14,788	16,242
Exchange differences	0	1
Amortization charge	(1,091)	(1,455)
Closing net book amount	13,697	14,788
Current marketed products \| Cost
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	24,000
Closing net book amount	24,000	24,000
Current marketed products \| Accumulated amortization
Disclosure Of Intangible Assets [Line Items]
Opening net book amount	(9,212)
Closing net book amount	$ (10,303)	$ (9,212)

Label	Element	Value
Reserve of equity component of convertible instruments [member]
Issuance Of Warrants	meso_IssuanceOfWarrants	$ 0

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	9 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2021
Disclosure Of Financial Instruments [Line Items]
Contingent consideration provision	$ 18,663	$ 23,284	$ 25,409
Unobservable inputs	Expected unit sales price
Expected unit sales price
Disclosure Of Financial Instruments [Line Items]
Percentage of reasonably possible increase (decrease) in unobservable input, liabilities	0.10	0.10
Percentage of reasonably possible increase (decrease) in fair value measurement due to change in unobservable input, liabilities	0.002	0.02
Probability of Success
Disclosure Of Financial Instruments [Line Items]
Unobservable inputs	Probability of success and payment
Probability of Success \| Probability of success
Disclosure Of Financial Instruments [Line Items]
Percentage of reasonably possible increase (decrease) in unobservable input, liabilities	0.10	0.10
Percentage of reasonably possible increase (decrease) in fair value measurement due to change in unobservable input, liabilities	0.101	0.086
Probability of Success \| Payment assumptions
Disclosure Of Financial Instruments [Line Items]
Percentage of reasonably possible increase (decrease) in unobservable input, liabilities	0.20	0.20
Percentage of reasonably possible increase (decrease) in fair value measurement due to change in unobservable input, liabilities	0.202	0.172
Expected Sales Volume
Disclosure Of Financial Instruments [Line Items]
Unobservable inputs	Expected sales volumes
Expected Sales Volume \| Expected sales volumes
Disclosure Of Financial Instruments [Line Items]
Percentage of reasonably possible increase (decrease) in unobservable input, liabilities	0.10	0.10
Percentage of reasonably possible increase (decrease) in fair value measurement due to change in unobservable input, liabilities	0.002	0.02
Discounted cash flow
Disclosure Of Financial Instruments [Line Items]
Contingent consideration provision	$ 18,663	$ 23,284
Valuation technique	Discounted cash flows
Unobservable inputs	Risk adjusted discount rate
Discounted cash flow \| Risk adjusted discount rate
Disclosure Of Financial Instruments [Line Items]
Percentage of reasonably possible increase (decrease) in unobservable input, liabilities	0.005	0.005
Percentage of reasonably possible increase (decrease) in fair value measurement due to change in unobservable input, liabilities	0.0001	0.002
Discounted cash flow \| Bottom of Range \| Risk adjusted discount rate
Disclosure Of Financial Instruments [Line Items]
Range of inputs (weighted average)	11.00%	11.00%
Discounted cash flow \| Top of Range \| Risk adjusted discount rate
Disclosure Of Financial Instruments [Line Items]
Range of inputs (weighted average)	13.00%	13.00%
Discounted cash flow \| Weighted Average \| Risk adjusted discount rate
Disclosure Of Financial Instruments [Line Items]
Range of inputs (weighted average)	(12.50%)	(12.50%)

Financial assets and liabilities - Summary of Changes in Fair Value of Level 3 Instruments (Parenthetical) (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2022
Level 3
Disclosure Of Financial Instruments [Line Items]
Gain (loss) on re-measurement of contingent consideration provision	$ 7.3	$ 0.9

(Losses)/earnings per share (Tables)

9 Months Ended

Mar. 31, 2023

Earnings per share [abstract]

Summary of (Loss) Earnings Per Share


	Three Months Ended		Nine Months Ended
	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022
	Cents	Cents	Cents	Cents
(Losses) per share
(in cents)
(a) Basic (losses) per share
From continuing operations attributable to the ordinary equity holders of the company	(2.53)	(3.28)	(8.29)	(10.78)
Total basic (losses) per share attributable to the ordinary equity holders of the company	(2.53)	(3.28)	(8.29)	(10.78)

(b) Diluted (losses) per share
From continuing operations attributable to the ordinary equity holders of the company	(2.53)	(3.28)	(8.29)	(10.78)
Total diluted (losses) per share attributable to the ordinary equity holders of the company	(2.53)	(3.28)	(8.29)	(10.78)

(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	(18,600)	(21,302)	(59,970)	(69,892)

Diluted (losses) per share
(Losses) from continuing operations attributable to the ordinary equity holders of the company:
Used in calculating basic (losses) per share	(18,600)	(21,302)	(59,970)	(69,892)
(Losses) attributable to the ordinary equity holders of the company used in calculating diluted losses per share	(18,600)	(21,302)	(59,970)	(69,892)

	Three Months Ended		Nine Months Ended
	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022
	(In Shares)	(In Shares)	(In Shares)	(In Shares)
Weighted average number of ordinary shares used as the denominator in calculating basic losses per share	736,578,315	649,559,952	722,977,342	648,563,467
Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted losses per share	736,578,315	649,559,952	722,977,342	648,563,467

Financial assets and liabilities - Summary of Warrant Liability (Details) - USD ($) $ in Thousands			9 Months Ended		12 Months Ended
	Dec. 22, 2022	Nov. 19, 2021	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
Disclosure Of Financial Assets And Liabilities [Abstract]
Opening balance			$ 2,185	$ 0	$ 0
Warrants fair value at grant date	$ 1,036	$ 8,081
Remeasurement of warrant liability			1,229	$ (3,048)	(5,896)
Closing Balance			$ 4,450		$ 2,185

Financial assets and liabilities - Summary of Cash and Cash Equivalents (Parenthetical) (Details) - USD ($) $ in Millions	Mar. 31, 2023	Jun. 30, 2022
Disclosure Of Financial Assets And Liabilities [Abstract]
Interest-bearing deposits at call held as security	$ 0.4	$ 0.4

Financial assets and liabilities - Summary of Borrowings (Details) XUA in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2023 XUA	Jun. 30, 2022 XUA	Nov. 19, 2021 USD ($)
Borrowings
Borrowing arrangements \| $	$ 81,919	$ 81,919
Less: transaction costs \| $	(8,622)	(8,247)
Amortization of carrying amount, net of payments made \| $	33,060	22,962
Current \| XUA			XUA 7,314	XUA 5,017
Non-current	99,043	91,617	99,043	91,617
Borrowings \| $	$ 106,357	$ 96,634
Oaktree Capital Management, L.P.
Borrowings
Current \| XUA			5,324	4,645
Non-current \| XUA			46,222	43,719
Borrowings \| $					$ 60,000
NovaQuest Capital Management, L.L.C.
Borrowings
Current \| XUA			1,990	372
Non-current \| XUA			XUA 52,821	XUA 47,898

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	9 Months Ended			12 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2023 AUD ($)	Mar. 31, 2022	Jun. 30, 2022 USD ($)	Jun. 30, 2022 AUD ($)
Disclosure of Financial Risk Management [Line Items]
Effect on profit from change in interest rate increase or decrease			0.03%	0.00%	0.00%
USD
Disclosure of Financial Risk Management [Line Items]
Funds invested	$ 31,274			$ 49,383
Rate increase on funds invested	53			15
Rate decrease on funds invested	$ (53)			$ (15)
Effect on profit from change in interest rate increase or decrease	10.00%	10.00%		10.00%	10.00%
USD \| Bottom of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	1.69%	1.69%		0.00%	0.00%
Rate increase	1.86%	1.86%		0.03%	0.03%
Rate decrease	1.52%	1.52%		0.03%	0.03%
USD \| Top of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	1.69%	1.69%		0.00%	0.00%
Rate increase	1.86%	1.86%		0.03%	0.03%
Rate decrease	1.52%	1.52%		0.03%	0.03%
AUD
Disclosure of Financial Risk Management [Line Items]
Funds invested		$ 600			$ 600
Rate increase on funds invested		2			1
Rate decrease on funds invested		$ (2)			$ (1)
Effect on profit from change in interest rate increase or decrease	10.00%	10.00%		10.00%	10.00%
AUD \| Bottom of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	4.09%	4.09%		1.50%	1.50%
Rate increase	4.50%	4.50%		1.65%	1.65%
Rate decrease	3.68%	3.68%		1.35%	1.35%
AUD \| Top of Range
Disclosure of Financial Risk Management [Line Items]
Funds invested percentage	4.09%	4.09%		1.50%	1.50%
Rate increase	4.50%	4.50%		1.65%	1.65%
Rate decrease	3.68%	3.68%		1.35%	1.35%

Consolidated Balance Sheet (unaudited) XUA in Thousands, $ in Thousands	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)
Current Assets
Cash & cash equivalents	$ 48,799	$ 60,447
Trade & other receivables	8,393	4,403
Prepayments	4,173	4,987
Total Current Assets	61,365	69,837
Non-Current Assets
Property, plant and equipment	1,484	2,045
Right-of-use assets	5,641	7,920
Financial assets at fair value through other comprehensive income	2,032	1,758
Other non-current assets	2,388	1,930
Intangible assets	577,531	578,652
Total Non-Current Assets	589,076	592,305
Total Assets	650,441	662,142
Current Liabilities
Trade and other payables	20,972	23,079
Provisions	17,576	17,906
Borrowings	7,314	5,017
Lease liabilities	3,605	3,186
Warrant liability	4,450	2,185
Total Current Liabilities	53,917	51,373
Non-Current Liabilities
Provisions	8,167	12,523
Borrowings	99,043	91,617
Lease liabilities	4,646	7,085
Deferred consideration	2,500	2,500
Total Non-Current Liabilities	114,356	113,725
Total Liabilities	168,273	165,098
Net Assets	482,168	497,044
Equity
Issued Capital	1,207,500	1,165,309
Reserves	73,554	70,651
(Accumulated losses)/retained earnings	(798,886)	(738,916)
Total Equity	$ 482,168	$ 497,044

Segment Information - Additional Information (Details)	9 Months Ended
Segment Information - Additional Information (Details)	Mar. 31, 2023 segment
Disclosure of operating segments [abstract]
Number of operating segment	1

Financial risk management (Tables)

9 Months Ended

Mar. 31, 2023

Disclosure Of Financial Risk Management [Abstract]

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


	As of March 31, 2023					As of June 30, 2022
(in U.S. dollars, in thousands, except percent data)	Low		High		US$	Low(1)		High(1)		US$
Funds invested - US$	1.69	%	1.69	%	31,274	0.00	%	0.00	%	49,383
Rate increase by 10%	1.86	%	1.86	%	53	0.03	%	0.03	%	15
Rate decrease by 10%	1.52	%	1.52	%	(53)	0.03	%	0.03	%	(15)

(in Australian dollars, in thousands, except percent data)	Low		High		A$	Low		High		A$
Funds invested - A$	4.09	%	4.09	%	600	1.50	%	1.50	%	600
Rate increase by 10%	4.50	%	4.50	%	2	1.65	%	1.65	%	1
Rate decrease by 10%	3.68	%	3.68	%	(2)	1.35	%	1.35	%	(1)


(1)The interest rate was 0% for the period ended June 30, 2022. The sensitivity assumes the interest rate to increase or decrease by 0.03%, which is consistent with prior periods.

Summary of Borrowing to Price Rate Changes

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


	As of March 31, 2023			As of June 30, 2022
(in U.S. dollars, in thousands, except percent data)	Total	% of total borrowings		Total	% of total borrowings
Financial liabilities
Current borrowings
Borrowings - NovaQuest	1,990	2	%	372	0	%
Non-current borrowings
Borrowings - NovaQuest	52,821	50	%	47,898	50	%
	54,811	52	%	48,270	50	%

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

As of March 31, 2023, the maturity profile of the anticipated future contractual cash flows on an undiscounted basis, and which therefore differs from the carrying value, is as follows:


(in U.S. dollars, in thousands)	Within 1 year	Between 1-2 years	Between 2-5 years	Over 5 years	Total contractual cash flows	Carrying amount
Borrowings(1)(2)	(8,242)	(21,954)	(142,717)	—	(172,913)	(106,357)
Trade payables	(20,977)	—	—	—	(20,977)	(20,977)
Lease liabilities	(3,981)	(3,251)	(1,618)	—	(8,850)	(8,251)
Contingent consideration(3)	(4,639)	(2,466)	(3,546)	—	(10,651)	(786)
	(37,839)	(27,671)	(147,881)	—	(213,391)	(136,371)

Income tax benefit/(expense) - Summary of Deferred Tax Assets Not Brought to Account (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Unused tax losses
Potential tax benefit at local tax rates	$ 121,389	$ 111,283
Other temporary differences
Potential tax benefit at local tax rates	12,638	11,046
Other tax credits
Potential tax benefit at local tax rates	3,220	3,220
Deferred tax assets not brought to account	$ 137,247	$ 125,549

Financial risk management - Schedule of Maturity Profile of Anticipated Future Contractual Cash Flows Carrying Value (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	$ (213,391)
Carrying amount	(136,371)
Within 1 year
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(37,839)
Between 1-2 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(27,671)
Between 2-5 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(147,881)
Over 5 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	0
Borrowings
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(172,913)
Carrying amount	(106,357)
Borrowings \| Within 1 year
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(8,242)
Borrowings \| Between 1-2 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(21,954)
Borrowings \| Between 2-5 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(142,717)
Borrowings \| Over 5 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	0
Trade payables
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(20,977)
Carrying amount	(20,977)
Trade payables \| Within 1 year
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(20,977)
Trade payables \| Between 1-2 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	0
Trade payables \| Between 2-5 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	0
Trade payables \| Over 5 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	0
Lease liabilities
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(8,850)
Carrying amount	(8,251)
Lease liabilities \| Within 1 year
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(3,981)
Lease liabilities \| Between 1-2 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(3,251)
Lease liabilities \| Between 2-5 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(1,618)
Lease liabilities \| Over 5 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	0
Contingent consideration
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(10,651)
Carrying amount	(786)
Contingent consideration \| Within 1 year
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(4,639)
Contingent consideration \| Between 1-2 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(2,466)
Contingent consideration \| Between 2-5 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	(3,546)
Contingent consideration \| Over 5 years
Disclosure Of Maturity Analysis For Derivative Financial Liabilities [Line Items]
Total contractual cash flows	$ 0