Mesoblast (ASX:MSB) completed a global private placement to existing US, UK, and Australian shareholders, raising AU$260 million at AU$2.50 per share, according to a Tuesday filing with the Australian bourse.

The proceeds will fund the US commercial launch of Ryoncil for pediatric steroid-refractory acute graft-versus-host disease, accelerate the second phase three study in inflammatory chronic low back pain, expand commercial manufacturing activities, and fund working capital and general corporate purposes, the filing said.

The company's shares fell almost 7% in recent Tuesday trade.