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.
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)
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