** Shares of Mesoblast MSB.AX fall as much as 9.3% to A$2.55, their largest intraday pct loss since Dec 20

** Stock hits lowest level since Dec 24

** The drug developer completes private placement to raise A$260 mln ($160.73 mln)

** Placement issue price at A$2.5 per share, representing an 11% discount to stock's last close

** Co says funds to be used for the U.S. commercial launch of its Ryoncil therapy for the treatment of graft-versus-host disease, among others

** Stock down 15.2% YTD, including current session's moves

($1 = 1.6176 Australian dollars)

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))