NeuroScientific Biopharmaceuticals (ASX:NSB) Takes Bold Step into Stem Cell Therapies
- Noel Ong
- May 27
- 4 min read
Announcement:
NeuroScientific Biopharmaceuticals Ltd (ASX:NSB) has made a decisive move with its proposed acquisition of StemSmart™, a patented mesenchymal stromal cell (MSC) technology. This isn’t just another biotech transaction — it signals a strategic leap into the fast-growing field of regenerative medicine, positioning NSB to capitalise on one of the most promising frontiers in modern healthcare.
StemSmart, developed by Isopogen WA Ltd, has already shown compelling clinical outcomes in patients with refractory Crohn’s disease. The product has demonstrated anti-inflammatory and immunomodulatory effects, making it a potential game-changer across a range of immune-mediated conditions.
“We’re incredibly excited to add mesenchymal stem cell technology to our growing portfolio. This acquisition not only complements our existing pipeline of therapeutic peptides, but also strategically positions us at the forefront of next-generation biologics.”— Dr. Anton Uvarov, Founding Director, NSB
A Snapshot of the Acquisition
NeuroScientific is acquiring 100% of Isopogen WA Ltd. — the company behind StemSmart. As part of the acquisition:
NSB will issue 85.7 million fully paid shares and 57.1 million performance shares, with the latter linked to clinical milestones.
A Special Access Program targeting fistulising Crohn’s disease will kick off post-acquisition, a condition notoriously difficult to treat.
A successful clinical response in at least 4 of 12 trial participants will trigger conversion of the performance shares.
NSB has already secured firm commitments to raise $3.5 million, adding to a projected $7.5 million cash on hand post-transaction.
Why StemSmart™ Stands Out
StemSmart MSCs are bone marrow-derived cells enhanced through a proprietary manufacturing process. Their strength lies in how they modulate the immune system, secreting factors that reduce inflammation and encourage tissue repair.
In an earlier Phase 2 trial, 78% of patients showed clinical improvement, and 44% achieved full remission. These outcomes were achieved without major adverse effects — a rarity in Crohn’s disease treatment.
StemSmart has also been used under compassionate access programs, with encouraging responses in adults and children suffering from graft-versus-host disease (GvHD) and other severe conditions.
The Broader Impact
This acquisition doesn’t just bring in a technology — it extends NSB’s footprint from neurodegenerative drug development into broader immune-inflammatory arenas.
StemSmart’s potential applications span
Crohn’s Disease (US$13.8 billion market by 2026)
Kidney Transplant rejection
Lung disorders (US$33 billion market by 2034)
GvHD and broader autoimmune conditions
Notably, the FDA’s recent approval of an MSC therapy by Mesoblast has reignited global confidence and funding in the MSC space. With regulators like the TGA offering pathways such as the Special Access Scheme, NSB is well-placed to accelerate clinical development in Australia and beyond.
What Comes Next?
NSB will initially target fistulising Crohn’s disease through a Special Access Program. If successful, the program will transition into Phase 1/2 clinical trials, with parallel plans for advancing trials in lung diseases and other inflammatory disorders.
On top of that, NSB will continue to progress its existing asset, EmtinB™, now focused on ophthalmology applications such as glaucoma. Two preclinical studies are slated for the next 12 months, reflecting a dual-pronged development strategy across cell therapies and peptide-based treatments.
Samso’s Concluding Comments
The market is making this announcement feel like a real pivot moment for NeuroScientific. Reading into the research, the acquisition does not appear to be just adding another biotech project to the shelf — it’s making a bold claim to leadership in the regenerative medicine space (Figure 1).
In the same way that early adopters of immuno-oncology or mRNA saw exponential momentum, NSB is now tying itself to the next wave in cell-based therapy.
Figure 1: Share price chart for NeuroScientific Biopharmaceuticals Ltd (ASX:NSB) since 2022. (source: Commsec)
The market perception of NSB has been steady the last 18 months, and it's very clear that this acquisition has excited investors. The last excitement for the share price was in April 2024 (Figure 1 and Figure 2). The fact that the share price at the time of publishing looks like it's holding well is a good sign for the value created. The previous highs did not hang around long enough to create any value other than hot air.
Figure 2: Share price chart for NeuroScientific Biopharmaceuticals Ltd since 2024. (ASX:NSB). (source: Commsec)
According to the company, the partnership with Isopogen WA is also one to watch closely. The clinical data isn’t theoretical — it’s based on real patients, with real outcomes. And in an environment where biotech valuations are climbing, NSB is positioning itself for long-term value creation through validated science and an addressable market worth billions.
The story is far from over, but this chapter is starting strong.
Happy Investing and remember, always DYOR.
To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018.
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints.
Share to Grow: Your Bonus
Samso has just released an eBook: How to Add Value to your Share Portfolio
A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook.
If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au.
Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.