Mesoblast Ltd (ASX: MSB) shares have been on fire over the past 12 months.

During this time, the biotechnology company's shares have rallied around 700%.

To put that into context, a $5,000 investment in its shares a year ago would now be worth approximately $40,000.

But if you thought those gains were over, think again!

That's because analysts at Bell Potter see scope for Mesoblast's shares to almost double in value again from current levels.

Though, it warns that it is a high risk investment, which means it wouldn't be suitable for the average investor.

Mesoblast shares tipped to rocket

According to a note out of Bell Potter, its analysts have retained their speculative buy rating and lifted their price target to $4.30 (from $3.90).

Based on the current Mesoblast share price of $2.37, this implies potential upside of 81% for investors over the next 12 months.

Bell Potter highlights that the company is on course to start generating revenue from its Ryoncil product in a matter of weeks. It said:

Following FDA approval last December the company has moved with purpose to make this life saving therapy available to patients. The list price (wholesale acquisition cost) for Ryoncil has been established at US$194K per infusion equating to US$1.55m per patient in paediatric cases. The realised price will likely be a discount to the list price, nevertheless, the list price is not unreasonable compared to other therapies for rare paediatric disease in the US and considering the lifetime benefit. This indicative pricing is 2x our previous estimate.

The forecast assumes Ryoncil will be available for the June quarter, and we estimate approximately 20 patients (in 4Q25). There is ample product available to meet demand and we regard this period as a meaningful early indicator both for physician demand and payers' willingness to pay. The efficacy data is a slam dunk in our view, and we believe payers will be compelled to reimburse.

'Potential to vastly expand earnings'

The broker points out that the company may not stop at GvHD. It is just one of a number of inflammatory diseases that Mesoblast could target.

All in all, this could mean there is significant potential to grow its earnings in the coming years. It adds:

GvHD is the first indication at the head of a long list of inflammatory diseases which the company will investigate in the years ahead i.e. the therapy has applications wider than GvHD to other life threatening diseases where the immune system "goes haywire." Should the label expand to these indications, MSB has the potential to vastly expand earnings.

All in all, after many years of disappointment, Mesoblast finally looks well-positioned to save lives and help build shareholder wealth.