NBS $3 TARGET BY JMP SECURITIES !!! Broadening p

[b]NBS >> $3 TARGET BY JMP SECURITIES !!![/b]

Broadening patent represents an incremental positive for Neostem

*   This morning, Neostem announced further progress with the intellectual
property protection of AMR-001, both in the U.S. and Japan.
*   We view this news as an incremental positive, adding to the broad IP
protection that continues to be built around the company's novel cellular therapy
candidate.
*   The company is progressing enrollment in a Phase II trial for AMR-001 in
patients following heart attack.
*   We look to updates on enrollment progress in 4Q12 and 1H13 and still
anticipate top-line results in 2H13.

USPTO expands AMR-001 patent claims

*   Neostem announced that it has received a Notice of Allowance from the USPTO
that expands the "scope and protection" of AMR-001.
*   The allowed claims "protect the use of CD34+ cells acquired from blood or bone
marrow, to impart a therapeutic benefit to tissue sustaining an ischemic injury".
*   We note that Neostem has already secured a composition of matter patent for
AMR-011 (U.S. 7,794,705), issued in September 2010.
*   A second patent (U.S. 8,088,370) was issued in January 2012 that broadly
covers CD34+/CXCR4+ cells and their use to treat or repair vascular injury.

Global patent portfolio extends to Japan

*   In addition to the progress in the U.S., Neostem announced the granr of a
patent for AMR-001 in Japan.
*   The patent is entitled "Compositions and Methods of Vascular Injury Repair".
*   As in the U.S., cardiovascular disease is a leading cause of morbidity and
mortality in Japan, representing an attractive commercial market for AMR-001.

Our $3 price target is derived through a sum-of-the-parts analysis including AMR-001
and service revenue from PCT.

Biotechnology Equity Research
JMP Securities, LLC