Cynata Therapeutics (ASX:CYP) has gained in value on news its stem cells are showing promise as a treatment for pneumonia-induced blood poisoning.

The Cymerus mesenchymal stem cells (MSC) are showing promise as a treatment for the troubling problem of sepsis.

Cynata gained up to 10 per cent in morning trade today after reporting efficacy data from Royal College of Surgeons in Ireland anaesthesia and critical care department chairman Professor Gerard Curley’s work in the clinic.


The Victorian biotech’s development partner found the MSC treatment had a number of statistically significant good effects on severe pneumonia-induced sepsis in a preclinical model clinic.

These included increasing blood oxygen levels and improving the ability of Cynata model lungs to stretch and expand.

The stem cells also decreased lung injury-inducing alveolar neutrophil infiltration and harmful protein-invading barrier permeability and inflammation.

Cynata also reported its partner saw “positive trends” in the clinic with the MSCs in a mild pneumonia-induced sepsis model.

The cells also enhanced the way white blood cells ingested and removed bacteria and other harmful agents, directly and indirectly.

Professor Curley acknowledged there was a “critical need for new therapies to treat sepsis”.

“(Sepsis) is a devastating condition that can affect people at any stage of life without warning,” he said.

“These exciting results give us grounds for optimism that Cymerus MSCs could provide a new treatment option for these patients.”

Cynata chief operating officer Dr Kilian Kelly also acknowledged the unmet need, saying the company believes the intensive care consultant’s results could support a jump to a clinical trial in sepsis patients.

“These latest results build on our broad preclinical database across a range of commercial opportunities, including asthma, heart disease and diabetes complications, in addition to our very successful clinical trial in GvHD,” Dr Kelly said.

Cynata plans to take product candidates based on its MSCs into phase II clinical trails for GvHD, critical limb ischemia and bone-pain related to OA.

In other ASX small cap biotech news today:

Bank of New York (BNY) has taken its custodian holding in Kazia Therapeutics (KZA) to 24.08 per cent from the 22.97 per cent stake it held on November 4, 2019.  BNY is the custodian for Kazia’s US ADR program and with Kazia’s ADRs trading higher than their ASX counterpart, investors are taking advantage of an arbitrage opportunity by buying Kazia ASX shares and converting them to ADRs.

Zelda Therapeutics (ASX:ZLD) shareholders voted in favour of a proposed name change to the Zelira Therapeutics moniker. The name change acknowledges a widening of the medicinal cannabis biotech’s global business after a reverse takeover by US-based Ilera Therapeutics, which is commercialising the HOPE treatment for autism spectrum disorder.