This ASX biotech share is up 20% today

A positive preliminary study helped send this ASX biotech share surging 50% before it edged back to a more modest rise of 20%

| More on:
illustration of half brain half lightbulb

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The Neuroscientific Biopharmaceuticals Ltd (ASX: NSB) share price is up 20% today on the back of an ASX announcement about its lead compound EmtinB. In a preclinical study, the compound demonstrated positive preliminary results in a Multiple Sclerosis (MS) model. In this study, EmtinB was assessed against the leading therapeutic treatment for MS, Copaxone. 

Copaxone generated peak sales of approximately US$4 billion in revenue in a market approximately worth in excess of US$20 billion. 2.3 million patients are suffering from MS globally.

What is Multiple Sclerosis?

According to healthline, "MS is a chronic illness involving your central nervous system. The immune system attacks myelin, which is a protective layer around nerve fibres. This causes inflammation and scar tissue, or lesions. This can make it hard for your brain to send signals to the rest of your body". 

What did the study find?

An extension of the concluded study results announced on 18 March 2020 demonstrated that EmtinB had a highly significant positive effect on the proliferation and differentiation of the myelin-forming cells of the central nervous system.  

Additionally, in the current study, EmtinB significantly increased myelin formation by greater than 30% at 150 ug/ml concentration. In comparison, the leading marketed drug, Copaxone, demonstrated myelin formation greater than 25% at 120 ug/ml.

Neuroscientific Biopharmaceuticals CEO and Managing Director, Matthew Liddelow, commented "These results represent a potential breakthrough in the treatment of MS as there are currently no approved therapeutic drugs available to patients that have demonstrated the ability to regenerate myelin in the central nervous system".

The company's full report of the study is expected to be available before the end of July.

About Neuroscientific

According to its website, the company's vision is to transform how the pharmaceutical industry approaches the understanding and treatment of neurodegenerative disease. It believes no other disease area holds as much need or as much promise for medical breakthroughs as neuroscience. 

Prior to today's announcement, the Neuroscientific share price had fallen roughly 23% in the last year. However, the positive result has sent the price soaring today to as high as 30 cents per share at one point. At the time of writing, the company's share price had edged back to 24 cents, giving the group a market capitalisation of $18.81 million. 

It will be interesting to see the full report of the study that is expected to be released at the end of July. 

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

An oil worker assesses productivity at an oil rig as ASX 200 energy shares continue to rise.
Share Market News

ASX 200 energy shares lead for the second week as world awaits US decision on Iran

ASX energy shares lifted 5.31% while the ASX 200 fell 0.49% amid the US President contemplating strikes.

Read more »

Two brokers analysing stocks.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A young well-dressed couple at a luxury resort celebrate successful life choices.
Broker Notes

These ASX 200 shares could rise 40% to 50%

Analysts at Macquarie see potential for these shares to deliver the goods for investors.

Read more »

A young man wearing glasses writes down his stock picks in his living room.
Opinions

2 amazing ASX shares I wish I'd bought earlier

I think these stocks are performing incredibly well.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Share Market News

$20,000 invested in CBA and these ASX 200 shares 5 years ago is worth

Did these shares deliver the goods for investors? Let's find out.

Read more »

a business person checks his mobile phone outside a Wall Street office with an American flag and other business people in the background.
Share Market News

Is the 'sell America' trade back?

Institutional investors appear to be at odds with retail investors.

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to a disappointing week for investors this Friday.

Read more »

Six smiling office colleagues stand in a row and look at the camera.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »