NeuroScientific Biopharmaceuticals reported a $1.85 million loss for FY25, driven by reduced R&D incentives and increased development costs following its acquisition of StemSmart™ technology. The company is advancing clinical programs, including a Special Access Scheme for Crohn’s disease.
- Net loss of $1.85 million for FY25, reversing prior year profit
- Acquisition of Isopogen WA Ltd completed, adding StemSmart™ platform
- Initiation of Special Access Scheme for fistulising Crohn’s disease patients
- Strong cash position of $7.27 million supports ongoing R&D activities
- Significant board and management changes during the year
Financial Results and Operational Overview
NeuroScientific Biopharmaceuticals Limited (ASX, NSB) has reported a net loss of $1.85 million for the financial year ended 30 June 2025, a sharp reversal from the prior year’s $324,000 profit. This downturn reflects a 93% drop in income, primarily due to a significant reduction in research and development (R&D) tax incentives, alongside increased expenditure as the company advances its clinical programs.
Despite the loss, NeuroScientific maintains a robust cash balance of $7.27 million, bolstered by capital raises and the strategic acquisition of Isopogen WA Ltd. The company remains pre-revenue, focusing on the clinical development of its lead drug candidate EmtinB™ and the newly acquired StemSmart™ technology platform.
Strategic Acquisition of StemSmart™ Technology
In June 2025, NeuroScientific completed the acquisition of Isopogen WA Ltd, securing exclusive rights to the StemSmart™ patented stem cell technology. This acquisition was accounted for as an asset acquisition rather than a business combination, with a total consideration valued at approximately $9.2 million, comprising cash, shares, and performance shares contingent on clinical milestones.
The StemSmart™ platform is positioned to expand NeuroScientific’s pipeline, particularly in regenerative medicine applications. The company has already initiated a Special Access Scheme (SAS) program in collaboration with gastroenterologists to treat patients with fistulising Crohn’s disease under compassionate use provisions, marking a significant step toward clinical validation.
Governance and Leadership Transitions
The year saw notable changes in NeuroScientific’s board and executive team. Robert McKenzie and Paul Fry were appointed as non-executive directors in June 2025, with McKenzie assuming the chairmanship. Concurrently, former executives Christopher Ntoumenopoulos and Tony Keating resigned. The company also strengthened its scientific and medical leadership with the appointments of Marian Sturm as Chief Scientific Officer, Dr Catherine Cole as Chief Medical Officer, and Nathan Smith as Chief Executive Officer.
Risks and Future Outlook
NeuroScientific’s forward path remains subject to the inherent risks of clinical development, regulatory approvals, and competitive pressures in the biotechnology sector. The company disclosed a 50% probability estimate for achieving the milestone tied to the conversion of performance shares related to the Isopogen acquisition, underscoring the uncertainty typical of early-stage biopharmaceutical ventures.
Nevertheless, the company’s strong cash position and strategic asset acquisition provide a solid foundation to progress its clinical programs. Investors will be watching closely for clinical trial outcomes and regulatory developments that could unlock value and validate the StemSmart™ technology’s therapeutic potential.
Bottom Line?
NeuroScientific’s FY25 results reflect the growing pains of clinical development and strategic expansion, setting the stage for critical milestones ahead.
Questions in the middle?
- What are the timelines and expected outcomes for the Special Access Scheme in Crohn’s disease?
- How will NeuroScientific finance ongoing R&D beyond its current cash reserves?
- What are the key regulatory hurdles for StemSmart™ and EmtinB™ commercialization?