Early success in battling Crohn’s Disease has sent this ASX biotech’s shares soaring

Shares in Neuroscientific Biopharmaceuticals Ltd (ASX: NSB) have rocketed more than 50% higher after the company announced positive clinical trial results for a treatment for Crohn’s Disease.

The biotechnology company, which focuses on finding treatments for immune-mediated inflammatory diseases, reported that three of four patients treated with its StemSmart treatment demonstrated a successful clinical response after receiving the mesenchymal stem cell (MSC) therapy.

And the fourth patient demonstrated a partial response, the company said.

It went on to say:

This is a remarkable result for patients who are living with debilitating complications of inflammatory bowel disease, which is often resistant to currently available approved therapies.

Few treatment options

The patients were approved for treatment under the special access scheme run by the Therapeutic Goods Administration, which allows for the use of new treatment options where no conventional therapies exist.

NSB Chief Executive Officer Nathan Smith said it was great news for the company.

He went on to say:

These treatment results provide critical validation of the StemSmart MSC platform in presenting a potential therapeutic solution to patients with debilitating fistulising Crohn’s disease that have limited effective treatment options. This data, along with our previous clinical trial results in refractory Crohn’s disease, provides a strong foundation for our commercialisation plans for StemSmart moving forward. Together, these early outcomes allow us to advance the development of a novel therapeutic in a responsible, informed, and patient-centred fashion as it supports and accelerates our progress toward clinical trial work later this year.

The company’s Chief Medical Officer, Dr Cathy Cole, said the response rate shown by the patients was “exceptional, given the serious, debilitating and long-standing adverse nature of their condition”.

She added:

If you consider that for these fistula patients treated with StemSmart, there were limited treatment options available, then the response to treatment is truly outstanding and offers hope for clinical recovery when there was previously little.

The StemSmart product is derived from adult human donor bone marrow-sourced MSC and is produced using a patented manufacturing process.

The company said in its ASX release that fistulising Crohn’s Disease was one of the most severe and debilitating complications of inflammatory bowel disease and was often resistant to the currently available therapies.  

NSB shares hit an early high of 17.5 cents, up 52.1% before settling back to be 34.8% higher at 15.5 cents.

The company was valued at $38.2 million at the close of trade on Monday.

The post Early success in battling Crohn’s Disease has sent this ASX biotech’s shares soaring appeared first on The Motley Fool Australia.

More reading

• As CBA shares struggle, is BHP set to retake the biggest ASX stock crown?
• Own VAS ETF? Here’s how your investment performed in 2025
• Why EOS, Elevra, Lynas, and New Murchison Gold shares are pushing higher today
• CBA vs. Westpac: Which is the better ASX bank stock for 2026?
• Which ASX defence ETF performed best in 2025?

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.