In a major boost for Australian medical innovation, Perth-based NeuroScientific Biopharmaceuticals has seen its share price rocket following promising real-world results for its experimental stem cell treatment targeting a severe bowel condition.
Market Responds to Groundbreaking Patient Data
The company's stock jumped by as much as 52 per cent to 17.5 cents on Tuesday, 13 January 2026, marking its highest trading turnover in over six months. This surge was a direct reaction to new data demonstrating that NeuroScientific's StemSmart cell therapy is delivering meaningful improvements for individuals suffering from fistulising Crohn's disease, a debilitating and often treatment-resistant form of inflammatory bowel disease.
The results stem from a real-world application under Australia's Special Access Scheme, which allows patients who have exhausted conventional options to access unapproved therapies. Four patients with advanced fistulising Crohn's were treated with the StemSmart therapy after being put forward by their clinicians.
Striking Clinical Outcomes in a Tough Setting
The outcomes were notably positive. Three of the four patients achieved a successful clinical response, a significant result in a condition known for its severity. The fourth patient recorded a partial response with signs of ongoing improvement.
In this challenging context, a clinical response is stringently defined as the closure of at least half of existing fistula openings or a reduction in discharge by 50 per cent or more. For patients enduring chronic pain, infection, and repeated surgeries, achieving this benchmark can be life-altering.
NeuroScientific's Chief Medical Officer, Dr Cathy Cole, emphasised the importance of the results, stating the response rate seen in this real-world setting is exceptional and offers hope where there was previously little.
The Science Behind the StemSmart Platform
The therapy utilises a specialised class of mesenchymal stem cells (MSCs) harvested from adult donor bone marrow. These cells undergo a patented refinement process designed to enhance their therapeutic potency. A key advantage of MSCs is that they are universal donor cells, requiring no donor-recipient matching. This positions StemSmart as a potential off-the-shelf cell therapy, avoiding lengthy waiting lists.
The successful data also validates NeuroScientific's strategic move in June of last year, when it acquired unlisted Perth stem cell specialist Isopogen and the underlying intellectual property for $5.1 million.
Nathan Smith, NeuroScientific's Chief Executive Officer, said the results provide critical validation of the StemSmart platform and, combined with earlier clinical trial data, create a strong foundation for commercialisation plans.
Pathway to Commercialisation and Broader Potential
Bolstered by this early validation and encouraging Phase II signals in refractory Crohn's disease, the company is now accelerating its next phase of development. NeuroScientific is integrating these real-world insights into the design of its next clinical trials, scheduled for the second half of this year. Work on manufacturing scale-up, regulatory planning, and trial development is progressing in parallel.
While fistulising Crohn's disease represents a global market worth approximately US$13 billion, NeuroScientific believes the StemSmart platform's potential extends far beyond. The company is exploring broader anti-inflammatory and immune-modulating applications, including pathways in organ transplant tolerance, lung inflammatory diseases, and graft-versus-host disease.
For the Australian biotech sector, where promise and proof can be distant cousins, NeuroScientific's real-world results, clear clinical pathway, and versatile platform technology represent a compelling convergence. If the momentum continues into the next round of trials, StemSmart could rapidly evolve from a promising experiment into a major commercial and medical success story.
