NBS NEWZZZ $12M CASH FROM ERYE CLOSURE // NeoStem Closes

New Post Public Reply Private Reply Replies (0) Message Board

Nov 13, 2012 at 10:26 AM

[b]NBS > NEWZZZ $12M CASH FROM ERYE CLOSURE [/b]// NeoStem Closes Divestiture of Its Ownership Interest in Suzhou Erye

2012-11-13 09:08 ET - News Release

NEW YORK, Nov. 13, 2012 (GLOBE NEWSWIRE) -- NeoStem, Inc. (NYSE:NBS) ("NeoStem" or the "Company"), an emerging market leader in the fast growing cell therapy industry, today announced that the Company has completed the divestiture of its 51% ownership interest in Suzhou Erye Pharmaceutical Co. Ltd. ("Erye"), a China-based generic pharmaceutical company. The divestiture provides NeoStem with $12,280,000 in cash and removes from the Company's balance sheet over $30 million in short and long-term debt obligations. Erye also returns 1,040,000 shares representing approximately 0.7% of the Company's outstanding common stock, 1,170,000 stock options representing approximately 5.1% of the Company's outstanding options and 640,000 warrants to purchase common stock held by Erye representing approximately 1.1% of the Company's outstanding warrants.

"We are very pleased to have reached this significant milestone in our business," said Dr. Robin Smith, Chairman and CEO of NeoStem. "The Erye divestiture brings non-dilutive capital that bolsters our cash position in the United States, reduces legal and financial reporting expenditures, simplifies our financial statements and focuses our efforts exclusively on the rapidly growing cell therapy industry. The divestiture also paves the way for the Company to qualify for new funding through the National Institutes of Health (NIH) Small Business Innovation Research (SBIR) program which would support our pre-clinical development of VSELTM Technology. NeoStem will also be able to invest more resources into its cell therapy development and contract manufacturing activities."

About NeoStem, Inc.

NeoStem, Inc. continues to develop and build on its core capabilities in cell therapy, capitalizing on the paradigm shift that we see occurring in medicine. In particular, we anticipate that cell therapy will have a significant role in the fight against chronic disease and in lessening the economic burden that these diseases pose to modern society. We are emerging as a technology and market leading company in this fast developing cell therapy industry. Our multi-faceted business strategy combines a state-of-the-art contract development and manufacturing subsidiary, Progenitor Cell Therapy, LLC ("PCT"), with a medically important cell therapy product development program, enabling near and long-term revenue growth opportunities. We believe this expertise and existing research capabilities and collaborations will enable us to achieve our mission of becoming a premier cell therapy company.

Our contract development and manufacturing service business supports the development of proprietary cell therapy products. NeoStem's most clinically advanced therapeutic product candidate, AMR-001, is being developed at Amorcyte, LLC ("Amorcyte"), which we acquired in October 2011. Amorcyte is developing a cell therapy for the treatment of cardiovascular disease and is enrolling patients in a Phase 2 trial to investigate AMR-001's efficacy in preserving heart function after a heart attack. Athelos Corporation ("Athelos"), which is approximately 80%-owned by our subsidiary, PCT, is collaborating with Becton-Dickinson in the early clinical exploration of a T-cell therapy for autoimmune conditions. In addition, pre-clinical assets include our VSEL TM Technology platform as well as our mesenchymal stem cell product candidate for regenerative medicine. Our service business and pipeline of proprietary cell therapy products work in concert, giving us a competitive advantage that we believe is unique to the biotechnology and pharmaceutical industries. Supported by an experienced scientific and business management team and a substantial intellectual property estate, we believe we are well positioned to succeed.

For more information on NeoStem, 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. Forward-looking statements include statements herein with respect to the successful execution of the Company's business strategy, including with respect to the Company's or its partners' successful development of AMR-001 and other cell therapeutics, the size of the market for such products, its competitive position in such markets, the Company's ability to successfully penetrate such markets and the market for its contract development and manufacturing ("CDMO") business, and the efficacy of protection from its patent portfolio, as well as the future of the cell therapeutics industry in general, including the rate at which such industry may grow. The Company's actual results could differ materially from those anticipated in these forward- looking statements as a result of various factors, including but not limited to matters described under the "Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2012 and in the Company's other periodic filings with the Securities and Exchange Commission, all of which are available on its website. The Company does not undertake to update its forward-looking statements. The Company's further development is highly dependent on future medical and research developments and market acceptance, which is outside its control.

CONTACT: For more information, please contact:
Trout Group
Gitanjali Jain Ogawa, Vice President
Phone: +1-646-378-2949
Email: gogawa@troutgroup.com

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

King Risk Partners Expands Mid-Atlantic Presence Boldly

King Risk Partners Grows with New Jersey Acquisition You don't get far in the insurance game without making some bold moves, and King Risk Partners just made a big one—sweeping into New Jersey. They've snagged Conover Beyer Associates Insurance, a firm that's been around longer than some European countries. It's not every day you buy a piece of history, but that's...

Innovative SOV Launches for Offshore Wind Revolution

A New Era for Offshore Wind Operations Mark my words, folks, this launch ain't just some minor milestone swaying gently on the industry seas. ZPMC's 'Wind of Ocean' is about to kickstart a whole new game in Europe's offshore wind space. Built with brains and brawn, this vessel embodies the future of sustainable and efficient offshore operations. The announcement from...

TCL's Energy Vision Unveiled at IFA 2026

TCL's Forward-Thinking Approach at IFA 2026 IFA 2026 in Berlin got a jolt when TCL Industries and TCL Technology rolled out their ambitious plans under the banner "Inspiration Habitat." By blending cutting-edge smart devices with clean energy advancements, TCL is frantically waving red flags for anyone with an eye on future living trends. The Heartbeat of Inspiration...

UGREEN's MagFlow Series: A Game-Changer in Charging

UGREEN Unveils a Cool Revolution in Charging Out in Foxborough, UGREEN is shaking things up at its Smart Living Launch Event. The big reveal? The MagFlow Series, their flagship wireless charging lineup, which promises faster and cooler charging than ever before. UGREEN's taking wireless charging to new heights, and that's got my attention. What Makes MagFlow Stand Out...

LG Electronics Unveils Smart Home Innovations at IFA

Alright, let's dive into this world of shiny new gadgets that LG Electronics has trotted out at the IFA 2026. As European homes get cozier, folks aren't just after any appliance—they're seeking ones that blend smarts, efficiency, and style. So, LG's rolling out seven of their latest and supposedly greatest home appliances, hoping they'll hit the mark with the modern...

Charity's Bold Move: Acquiring Wayfinder for K-12 Impact

Public Charity Expands Into Education Well, here's something that's bound to turn a few heads: a fast-growing public charity has just made its first acquisition in the K-12 sphere by snapping up Wayfinder. The stakes are getting interesting. When a charity starts playing in the acquisition space, you're looking at a change in strategy that deserves close attention. Why...

Armed Security: Balancing Safety with Cost in Rochester

The Decision to Arm: When Business Risks Demand It You know, deciding whether to hire armed security isn't as clear-cut as some folks make it seem. It ain't just about slapping a guard at your door. There's a whole set of chess moves behind it, especially in good ol' Rochester. When you're juggling high-risk operations, like handling valuable inventory or dealing with...

Curaleaf Expands in Florida Amid Rising Cannabis Demand

Curaleaf's Bold Moves in Florida's Ganja Gold Rush Fresh out of the gate, Curaleaf is saddling up for a wild ride into Florida's cannabis frontier. They've just thrown open the doors of their latest dispensary in Riverview, cranking their statewide count up to 77. Now, isn’t that something? If you're tracking these folks, you know that bringing their nationwide total to...

IVD Study Success: Hybrid Monitoring Boosts Oversight

New Strategies for IVD Clinical Studies It's high time we addressed the tangled web of managing in vitro diagnostic (IVD) clinical studies. We're talking about walking a tightrope where sponsors have to juggle regulatory scrutiny, data integrity, and operational efficiency—all while pushing innovation. Simply put, the old ways of doing things just aren't cutting it...

Flex Acquires EPC Power in a $4.4 Billion Deal

An Acquisition with Enormous Implications Folks, if you haven't been paying attention, you're missing out on a seismic shift. EPC Power's sale to Flex for a hefty $4.4 billion isn't just another transaction; it's a clear signal of where the future's headed, especially if you're plugged into the energy or tech sectors. With the way AI is guzzling power like a thirsty...