MEDIA RELEASE PR36874
NeoStem Acquires China Biopharmaceuticals Holdings, Inc.; Obtains Controlling
Interest in Profitable Leading Chinese Pharmaceutical Company
NEW YORK, Oct. 30 /PRNewswire-AsiaNet/ --
NeoStem, Inc. (NYSE Amex: NBS), announced today that the Company has completed
the acquisition of China Biopharmaceuticals Holdings, Inc. (OTC Bulletin Board:
CHBP), a leading Chinese pharmaceutical company.
The acquisition was completed following the approval of shareholders that was
obtained at a Special Meeting of Shareholders held yesterday at 11:00 am. The
shareholders of China Biopharmaceuticals approved the acquisition at a meeting of its
stockholders held yesterday at 9:00 am.
Robin Smith, MD, CEO of NeoStem commented, "This acquisition has been eagerly
anticipated by supporters of both NeoStem and CHBP. At NeoStem, we are very excited
to complete this transaction and begin our collaboration with Suzhou Erye
Pharmaceutical Co. Ltd., CHBP's primary operating subsidiary. This milestone adds in
a significant way to NeoStem's existing business and intellectual property platform
and assists in opening international access for the Company and its clientele to
advanced stem cell technologies, preeminent physicians, and innovative therapies for
a growing number of conditions. We are grateful to the leaders of CHBP who have
shared this vision with us, and to numerous supporters in the United States and China
who have helped make this possible. We believe strongly that the combination of our
two companies provides investors with a compelling growth story, that enjoys a
portfolio of valuable intellectual property that enables enhanced revenue generation
opportunities today and into the future."
The Company believes that the acquisition will add in a significant way to
NeoStem's current and future growth prospects :
a. A 51% ownership interest in Suzhou Erye Pharmaceutical Co. Ltd. ("Erye"),
located in Suzhou, China which based on year to date performance is on track to
generate for 2009 gross revenues of approximately $60 million (US) and net income of
approximately $12 million.
b. A robust portfolio of over 100 drugs on seven cGMP lines (current Good
Manufacturing Practices).
c. Strong customer relationships and established respected business; has been in
business for more than 50 years and is respected for its quality, service and
reliability.
d. Opens international access for the company and enables the combined entity to
source drugs and treatments from each others pipeline.
e. Company's presence in China provides access to one of the fastest growing
medical treatment markets in the world.
f. World class production and manufacturing capabilities with expansion capacity
with SFDA approved products and cGMP certified manufacturing facilities.
g. Enhanced balance sheet with total assets of approximately $52.8 million.
Madame Zhang, General Manager of Erye, said, "This Merger will allow us to expand
the business potential of Eyre's substantial lines of drugs, especially our
proprietary small molecule drugs, and distribute them throughout China, realizing
what we anticipate will be tremendous market potential. We look forward to a long and
fruitful relationship with NeoStem and believe it will benefit from the large and
growing China pharmaceutical market, which is expected to become the third largest
drug market in the world (behind the US and Japan), and forecast to triple in size by
2013. We are excited at the opportunity to become part of a listed publicly traded
company and believe that this combination will prove beneficial to shareholders."
About NeoStem, Inc.
NeoStem is engaged in the business of developing stem cell therapies, pursuing
anti-aging initiatives and 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 is also the licensor of various stem cell
technologies, including a worldwide exclusive license to VSEL(TM) Technology which
uses very small embryonic-like stem cells, shown to have several physical
characteristics that are generally found in embryonic stem cells, and is pursuing the
licensing of other technologies for therapeutic use. For more information, please
About China Biopharmaceuticals, Inc.
The acquisition will expand the capabilities and worldwide reach of NeoStem,
while providing immediate access to the largest and fastest growing healthcare
treatment market in the world. China Biopharmaceutical's primary asset is a 51%
ownership interest in Suzhou Erye Pharmaceutical Co. Ltd. ("Erye"), located in
Suzhou, China which in 2008 generated gross revenues of approximately $50 million
(US) and operating income of approximately $8,000,000 (US). NeoStem's 51% controlling
interest in Erye will enable it to benefit from the over 100 drugs on seven GMP
lines, including small molecule drugs being manufactured by Erye. Erye has been in
business for more than 50 years and is respected for its quality, service and
reliability. Erye has begun its three year expansion and relocation program which is
anticipated to enhance revenues, profits, and manufacturing capabilities in one of
the fastest growing medical markets, the Peoples Republic of China.
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 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 Registration Statement on Form S-4/A filed with the
Commission on October 6, 2009 as well as periodic filings made 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
Email: rsmith@neostem.com
SOURCE: NeoStem, Inc.
CONTACT: NeoStem, Inc.:
Robin Smith,
Chief Executive Officer,
+1-212-584-4180,
rsmith@neostem.com
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