MEDIA RELEASE PR40835
NeoStem Provides Second Quarter Update
NEW YORK, Aug. 16 /PRNewswire-AsiaNet/ --
NeoStem, Inc. (NYSE Amex: NBS) ("NeoStem" or the "Company") an international
biopharmaceutical company with product and service revenues, global research and
development capabilities and operations in three distinct business units, U.S. adult
stem cells, China adult stem cells, and China pharmaceuticals is today providing
results of its second quarter 2010.
Second Quarter Results
-- Quarterly revenues were $19.4 million, up 26% compared to the pro
forma results from the same period in 2009, and 23% higher than the
first quarter of 2010. The Company experienced a 25% increase in
revenue in the first half of 2010 compared to the pro forma revenue
results from the first half of 2009.
-- The Company had cash and cash equivalents of approximately $11 million
at June 30, 2010.
-- Net cash used in operating activities for the second quarter was
$842,000.
-- During the first half of 2010, the Company invested $8.6 million in
capital expenditures related to our continuing expansion into China.
Erye began relocation of its operations to its new state-of-the-art manufacturing
facility in early 2010 with the first of the State Food and Drug Administration (SFDA)
approvals of four production lines at the new plant. These production lines account
for the manufacture of the materials for approximately 90% of last year's revenues.
The expanded facility should enable Erye to increase its production capacity to
respond to forecasted rising demand in China's growing pharmaceutical market with the
expectation of stronger sales as 2010 unfolds. Erye's development pipeline continues
to advance, including SFDA approval to manufacture the sterile active pharmaceutical
ingredient of the anti-infective cloxacillin sodium and proton pump inhibitor
omeprazole announced earlier this year for which commercialization is anticipated to
begin by the end of 2010. Erye has an additional five products in its pipeline and is
working with NeoStem to evaluate opportunities to in-license or acquire new drug
opportunities to enhance the long-term growth potential.
The Company believes it is well positioned to recognize both near- and long-term
revenue opportunities through stem cell therapeutics. Adult stem cell collection and
storage as well as orthopedic treatment has commenced through NeoStem's collaborators
in China and Taiwan. In the United States, NeoStem continues to work with thought
leaders to deploy and advance an innovative group of stem cell technologies including
the VSEL(TM) Technology in an effort to develop treatment for a wide range of
diseases.
Recent Milestones
-- Exclusive collaboration with the Vatican's Pontifical Council for
Culture to expand adult stem cell research and raise awareness of the
importance of adult stem cell research and therapies and the
Pontifical Council has undertaken to commit $1 million to seed the
joint initiatives;
-- $700,000 contract from the U.S. Army Medical Research and Materiel
Command, Telemedicine and Advanced Technology Research Center
(USAMRMC-TATRC) to advance adult stem cell therapies in treating
traumatic wounds [Army Medical Research Acquisition Activity contract
number: (W81XWH-10-2-0039)] by evaluating the use of topically
applied bone marrow-derived adult mesenchymal stem cells (MSCs) for
rapid wound healing and preliminary assessment of VSEL(TM) Technology;
-- Sponsored research agreement (SRA) with the Schepens Eye Research
Institute, an affiliate of Harvard Medical School, to study the
development of therapies for both age-related macular degeneration
(AMD) and Glaucoma using NeoStem's proprietary VSEL(TM) Technology.
About NeoStem, Inc.
NeoStem, Inc. is engaged in the development of stem cell-based therapies, pursuit
of anti-aging initiatives and building of a network of adult stem cell collection
centers in the U.S. and China that are focused on enabling people to donate and store
their own (autologous) stem cells for their personal use in times of future medical
need. The Company also has licensed 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. NeoStem's majority-controlled Chinese pharmaceutical operation,
Suzhou Erye, manufactures and distributes generic antibiotics in China. For more
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. Forward looking statements include statements herein
with respect to the successful execution of the Company's strategy, accelerating
Erye's sales growth in 2010 and successful transfer of Erye's production lines to the
new facility, growth in revenues from the Company's China operations, as well as other
advances in the Company's business, about which no assurances can be given. 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
Annual Report on Form 10-K filed with the Securities and Exchange Commission on March
31, 2010 and Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on May 17, 2010, as well as other 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.
For more information, please contact:
NeoStem, Inc.
Robin Smith, CEO
Phone: +1-212-584-4174
Email: rsmith@neostem.com
SOURCE: NeoStem, Inc.
CONTACT: Robin Smith
CEO, NeoStem, Inc.
+1-212-584-4174
rsmith@neostem.com
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