Coolmore Stud reports St Nicholas Abbey has had his best week since his first operation in July.
The Aidan O'Brien-trained six-time Group One winner had to be retired after fracturing a pastern on the gallops at Ballydoyle.
A few days after surgery the six-year-old contracted colic and he had a further setback last week when it was discovered a steel weight-bearing pin in a cannon bone had broken.
"While still having a guarded prognosis, St Nicholas Abbey has had his best week since his initial surgery," a Coolmore statement said.
"Since the pin removal his weight bearing on the injured leg has improved gradually and he is walking as well as can be expected with a cast.
"St Nicholas Abbey seems more content, lying down several times a night to rest and his appetite is excellent so he is starting to thrive.
"His temperature has stabilised and blood work has normalised.
"Surgeons Dr Kelly & Dr O'Brien are more upbeat on his prognosis however there are many weeks to go before St Nicholas Abbey is out of danger."