Neostem Featured In Business Week; 'promising' Adult Stem Cell Market Discussed In Fortune-cnnmoney.

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23rd June 2009, 12:37am - Views: 341





Community Health NeoStem, Inc. 1 image




MEDIA RELEASE PR35156


NeoStem Featured in Business Week; 'Promising' Adult Stem Cell Market Discussed in Fortune-

CNNMoney.com Article


NEW YORK, June 22 /PRNewswire-AsiaNet/ --


    NeoStem, Inc. (NYSE Amex: NBS), which is pioneering the pre-disease collection, processing and long-

term storage of adult stem cells for future medical need, was featured in Gene Marcial's prominent

Business Week column, "Inside Wall Street," on June 18, 2009. Also, on June 16, 2009, the expanding

investment potential for adult stem cell businesses was assessed in a substantial Fortune Magazine article

distributed by CNNMoney.com.


    In his Business Week column, Mr. Marcial observed, "Big plans by tiny

NeoStem (NBS), which collects and stores adult stem cells for future medical

use, have helped catapult its stock to $2.27 a share from 50 cents on March

9." The columnist went on to cite NeoStem's patent protection filed for in

May for an adult stem cell technology to be used in cosmetic facial

rejuvenation. He also cited the 51% stake NeoStem is taking in Suzhou Erye

Pharmaceutical Co. Ltd., a 50-year-old Chinese drug manufacturer with

approximately $50 million in revenues in 2008. This acquisition is subject to

obtaining the approval of the shareholders of the Company and China

Biopharmaceuticals Holdings, Inc., obtaining appropriate regulatory approvals

and other customary closing conditions. For clarification, separate from the

Company's planned entrance into the pharmaceutical business in China through

the acquisition of Erye, the Company is embarking on its own independent

initiatives to develop stem cell therapies in China. Mr. Marcial also cites

NeoStem's raise of $11 million in April and its exclusive 10-year agreement,

announced June 15, 2009, with Enhance BioMedical Holdings Limited, a Shanghai

corporation, to develop a network of Stem Cell Collection and Treatment

Centers in Shanghai, and the Chinese provinces of Jiangsu, Zhejiang, Fujian,

Anhui and Jiangxi using NeoStem's proprietary technologies.


    To read the "Inside Wall Street" column taking the above into account

please use the following link:


han=magazine+channel_personal+business


    In addition, the expanding investment opportunities for adult stem cell

companies were discussed in depth in a Fortune Magazine article distributed

by CNNMoney.com on June 16, 2009. The article states that Robin Young, a

medical industry analyst from RRY Publications, "estimates that gross sales

of adult cellular therapies will be well over $100 million in the United

States this year. By 2018, he says stem cell therapy revenues could grow to

$8.2 million." The article, which compares prospects for adult stem cells

versus those for embryonic stem cells, also notes that "adult stem cells are

currently the only type of stem cells used in transplants to treat diseases,

such as cancers like Leukemia," and adds, "Furthermore, researchers are far

closer to commercializing drugs based on adult stem cells than any product

based on embryonic stem cells."


    To read the Fortune/CNNMoney.com story, please use the following


ne/?postversion=2009061610


    Robin Smith, M.D., MBA, NeoStem's Chief Executive Officer, said, "We are

very pleased that investors and prominent commentators like Mr. Marcial are

taking note of the driving power of NeoStem's adult stem cell therapeutic

development initiatives. We have achieved numerous milestones in the past few

months that have attracted the attention of investors who believe in the

commercial as well as medical promise of this field. Articles such as that in

Business Week and CNNMoney.com are creating new awareness of the rapid

advances being made in applying adult stem cell technologies. NeoStem is a

pioneer in recognizing these multiple emerging technologies and is taking a

leadership position in their powerful commercial potential."


    Dr. Smith continued, "As the biotechnology industry expands and the

number of diseases showing promise from stem cell therapies grows, astute

institutional investors are buying into businesses that they believe can

serve this projected $20- billion worldwide industry. We believe our

company's recent $11-million above-market financing can be attributed to our

expansion in the therapeutic arena as evidenced by recent licensing of stem

cell intellectual property." Dr. Smith made clear that the Company is not

able to comment on the projected revenues for the Company contained in this

article.


    Eric Wei, a NeoStem investor and the Managing Partner of RimAsia Capital

Partners, a Pan-Asian private equity firm with deep connections across Asia,

declared, "I believe investors are beginning to see that, compared to Osiris

-- which is the largest stem cell company with a market cap of around $425

million -- NBS is dramatically undervalued given its IP portfolio, product

pipeline and time to market, particularly within the vast market of China."


    NeoStem recently licensed certain stem cell technology in the therapeutic

areas of orthopedics, wounds and skin rejuvenation, adding it to its Very

Small Embryonic Like (VSEL) adult stem cell technology licensed in 2007. The

Company believes that VSELs and other adult stem cells found in the human

body are responsible for cellular regeneration and believes it is well

positioned to become an important research and therapeutic company by

identifying, collecting and concentrating these unique cells for delivery

when the person needs them in the future. Compared to embryonic stem cells,

these cells are one's own and are not subject to risk of rejection nor

require immune suppressing drugs and could remove any ethical dilemmas

surrounding embryonic stem cell research or treatment. The Company

anticipates accelerating its revenue growth by acquiring new stem cell

therapeutic technologies and expanding its IP portfolio.


    "We believe clinical application of NeoStem's proprietary technologies,

including its Very Small Embryonic Like (VSEL) adult stem cell technology,

should accelerate dramatically in China over the next several years," said

Jackson Ling, Chairman of Enhance Biomedical Holdings Limited a recent

investor in the Company and strategic partner with which NeoStem recently

entered into a 10-year agreement to develop a Stem Cell Collection and

Treatment Network utilizing NeoStem's proprietary adult stem cell

technologies in certain territories in Asia.


    About NeoStem, Inc.

    NeoStem is developing a network of adult stem cell collection centers

that are focused on enabling people to donate and store their own

(autologous) stem cells when they are young and healthy for their personal

use in times of future medical need. The Company has also entered into

research and development through the acquisition of a worldwide exclusive

license to technology to identify and isolate VSELs (very small

embryonic-like stem cells), which have been shown to have several physical

characteristics that are generally found in embryonic stem cells and is

pursuing other technologies to advance its position in the field of stem cell

tissue regeneration.


Community Health NeoStem, Inc. 2 image

    For more information, please visit: www.neostem.com.


    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning

of the Private Securities Litigation Reform Act of 1995. Forward-looking

statements reflect management's current expectations, as of the date of this

press release, and involve certain risks and uncertainties. The Company's

actual results, including its success, if any, in developing adult stem cell

therapies could differ materially from those anticipated in these

forward-looking statements as a result of various factors. Factors that could

cause future results to materially differ from the recent results or those

projected in forward-looking statements include the "Risk Factors" described

in the Company's Annual Report on Form 10-K for the fiscal year ended

December 31, 2008 and the Company's other periodic filings with the

Securities and Exchange Commission. The Company's further development is

highly dependent on future medical and research developments and market

acceptance, which is outside its control.


    CONTACT:

    NeoStem, Inc.

    Robin Smith, Chief Executive Officer

    T: 212-584-4180

    E: rsmith@neostem.com


    SOURCE NeoStem, Inc.


    CONTACT: Robin Smith, Chief Executive Officer NeoStem, Inc.,

+1-212-584-4180, rsmith@neostem.com

    (NBS)


To view this and other AsiaNet releases please visit http://www.asianetnews.net







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