NeuroScientific Secures StemSmart Tech, Targets Crohn’s Disease Breakthrough

Acquisition Completes, New Leadership Steps In

NeuroScientific Biopharmaceuticals Ltd (ASX, NSB) has officially completed its acquisition of Isopogen WA, securing 100% ownership of the patented StemSmart stem cell technology. This move marks a significant milestone for the Perth-based biopharmaceutical company, which now holds exclusive rights to a proprietary process that enhances the clinical efficacy of mesenchymal stem cells derived from adult human bone marrow.

Alongside the acquisition, NSB has bolstered its leadership team with the appointment of Robert McKenzie as non-executive chairman and Paul Fry as a non-executive director. Marian Sturm will also join as Chief Scientific Officer, signaling a strategic emphasis on advancing the company’s scientific and clinical programs. The company raised approximately $7.5 million through a placement to institutional and sophisticated investors, providing a solid financial foundation for upcoming initiatives.

Focus on Crohn’s Disease and Clinical Progress

The immediate priority for NeuroScientific is the Special Access Program (SAS) targeting fistulising Crohn’s disease, a challenging condition with limited effective treatment options. Early data from a Phase 2 trial involving 18 patients with refractory Crohn’s disease showed that the StemSmart mesenchymal stem cell therapy was not only safe but also demonstrated promising efficacy, with many patients experiencing clinical improvement or remission.

This clinical progress is particularly noteworthy given the significant unmet medical need in Crohn’s disease, where current therapies often fall short or carry substantial side effects. The SAS program aims to provide patients with access to this innovative treatment while gathering further data to support regulatory approval efforts.

Broader Market Potential and Future Outlook

Beyond Crohn’s disease, StemSmart technology has potential applications across several large and growing markets, including kidney transplant immunosuppressants, lung disorders, and graft-versus-host disease (GvHD). Previous Phase 1 trials and compassionate use cases in steroid-refractory GvHD patients have shown encouraging responses, suggesting a broad therapeutic scope for the technology.

With global markets for these indications projected to reach billions of dollars in the coming decade, NeuroScientific’s acquisition positions it well to capitalize on multiple high-value opportunities. The company’s leadership changes and fresh capital injection underscore its commitment to advancing StemSmart through clinical development and towards regulatory milestones.

Incoming Chairman Robert McKenzie expressed optimism about the path ahead, emphasizing the company’s dedication to delivering new treatment options for vulnerable patients. He also acknowledged the contributions of outgoing directors, signaling a new chapter for NSB as it navigates this critical growth phase.