NeuroScientific sinks on trial hitch

Shares in Clough family-backed NeuroScientific Biopharmaceuticals have plunged after a planned clinical trial for its budding Alzheimer’s treatment was rejected by the Human Research Ethics Committee. 

NeuroScientific said it was unexpected that lead drug candidate, EmtinB, had been knocked back by the Australian HREC and it was seeking clarification on the decision.

EmtinB is Neuroscientific’s peptide-based pharmaceutical product aimed at treating a range of neurodegenerative conditions, including Alzheimer’s disease and multiple sclerosis.

The Cottesloe-based company had submitted the drug to the HREC to progress to the human clinical trials stage, having received approval to start early-phase clinical trials earlier this calendar year.

The rejection was also a surprise to investors, seemingly, with NeuroScientific shares losing half their value on the back of the news.

According to NeuroScientific, the HREC deemed that the company’s supporting documents ‘did not sufficiently address the risk-benefit profile’ to justify conducting a phase one clinical trial.

“The HREC decision to not approve the phase one clinical trial was unexpected and the company is seeking clarification on the rationale for the decision to determine what steps can be taken to proceed with the ... trial,” a statement from NeuroScientific read.

"The market will be updated when more information is available."

McRae Investments, a family-owned investment and private equity company created by the late Australian businessman Harold Clough and his wife, Margaret, owns a 4.3 per cent stake in NeuroScientific. McRae Technology owns 13.3 per cent.

Stephen Quantrill is executive chairman of McRae Investments and a non-executive director of NeuroScientific.

Shares in NeuroScientific were down 61.8 per cent to trade at 8.2 cents.