(Updates throughout with more detail)
May 25 (Reuters) - Australian regenerative medicine maker Mesoblast Ltd on Thursday posted a narrower quarterly loss but booked a rise in research and development costs.
The company reported a net loss of $9.8 million for the three months to March 31, compared with a loss of $16.9 million a year ago.
Total revenue was $901,000, compared with $4.1 million a year ago. Last year’s figure was boosted by boosted by deferred commercial revenues for the firm’s Mesenchymal Precursor Cell (MPC) technology platform.
With cash reserves of $69.1 million as of March 31, the company reiterated that it needed new funding from a third party partner or via raising further capital to continue in business.
“There is a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern,” it said in a filing to the U.S. Securities and Exchange Commission.
However, it said its management and directors believe the company will be successful in meeting funding and debt requirements and the results had been prepared on a going concern basis.
Shares in Mesoblast were down 4.8 percent in late afternoon trade.
Reporting by Sandhya Sampath; Editing by Jane Wardell and Edwina Gibbs