NeuroScientific Biopharmaceuticals acquires Isopogen to advance stem cell therapy for neurodegenerative disorders

NeuroScientific Biopharmaceuticals (ASX: NSB) has announced it will acquire private company Isopogen WA and its StemSmart patented stem cell technology for the manufacture of mesenchymal stromal cells (MSC).

The company will incorporate the cellular technology into a special access program involving the use of allogeneic bone marrow-derived MSC to treat neurodegenerative conditions where sustained healing using standard therapies has limited success.

Isopogen also plans to initiate a series of clinical trials over the next 24 months to progress the technology for regulatory approval in various inflammatory and immune-based disorders.

Regulatory goal

NeuroScientific founding director Dr Anton Uvarov said the long-term goal was to have MSC therapy achieve regulatory and reimbursement approval and become accessible to patients.

“We are incredibly excited to add MSC technology to our growing portfolio, as it complements our existing pipeline of therapeutic peptides and strategically positions us at the forefront of next-generation biologics,” he said.

“Stem cell therapies are rapidly gaining global recognition as a transformative therapeutic modality and we see this as a powerful opportunity to expand our impact in regenerative medicine and deliver innovative solutions to patients across a range of conditions.”

Isopogen consideration

Under the terms of the acquisition, NeuroScientific will issue 85.7 million shares to Isopogen directors, along with 57.1 million performance shares that will convert into ordinary shares on a one-for-one basis.

NeuroScientific has also agreed to issue 2.85 million shares at $0.035 each to Isopogen’s adviser, Bennett Litigation and Commercial Law, as repayment of an existing debt.

The company will fund the acquisition primarily through a $3.5 million placement at $0.035 per share to professional, sophisticated and qualifying investors.

Dr Uvarov has subscribed for 2.65 million placement shares valued at $92,750.

Biomedical products

NeuroScientific and Isopogen specialise in the research and development of biomedical products for the treatment of neurodegenerative conditions, which are immune-mediated inflammatory disorders.

The company developed the StemSmart technology to manufacture a cell-based therapy targeting these disorders with potent anti-inflammatory and immunomodulatory properties and a multifaceted and complex interaction with the body’s immune system.

These actions result in a dampening of inflammation and the moderation of immune responses, inducing immune tolerance and encouraging tissue repair.

Therapy applications

NeuroScientific plans to apply StemSmart MSC therapy to conditions of unmet clinical need where patients have failed standard-of-care medical treatments or where there are limited effective treatments available.

These include refractory Crohn’s disease, acute renal rejection and steroid-refractory graft-versus-host disease (a complication of bone marrow transplant).

Dr Uvarov said the company had already observed “good clinical responses” in a number of Australian patients who had received the therapy on compassionate grounds for serious and life-threatening conditions.