ALLENDALE, N.J., and NEW YORK, May 3, 2011 /PRNewswire/ -- Progenitor Cell Therapy, LLC (PCT), an internationally recognized cell therapy services and development company and a wholly-owned subsidiary of NeoStem, Inc (NYSE Amex: NBS), an international biopharmaceutical company with operations in the U.S. and China, has expanded its business through new contract and contract extensions. NeoStem believes its strategic acquisition of PCT earlier this year is being validated each time the company acquires a new client and sees existing clients expand their clinical needs.
"PCT has unique insight into the growth of the cell therapy industry as we help our clients advance their product candidates from early stage to late stage clinical trials. We continue to see PCT as an enabling transaction that provides NeoStem with core expertise in cell-based manufacturing, enhanced regulatory affairs capabilities and clinical development," said Dr. Robin Smith, CEO of NeoStem. As such, the stage is set for NeoStem to begin the next phase of its transformation to a cell-based therapeutics company. Management believes that the PCT acquisition has been a critical and vital step for NeoStem in executing on the Company's strategy to become a world leader in cell therapeutics.
NeoStem today is working with PCT on the development of our VSEL platform and on the Athelos Corporation's T-Reg cell therapy in immunology. NeoStem owns 80% of Athelos through PCT. In addition, PCT's expertise is playing an increasingly larger role in NeoStem's evaluation of the vast number of strategic opportunities that we believe have been created in the financial crisis by valuable assets being left stranded without resources. With a diversified revenue base, strategic manufacturing, an expanding who's who list of clients and regulatory capabilities, NeoStem finds itself in the right place, at precisely the right time.
"It is my strong belief that NeoStem will become a major provider of cell-based medicines in the future and we will continue to plan for growth in this area and position ourselves to fund such activities through a variety of means that could include the calling of our outstanding warrants, divestiture of assets or acquisition related or other financing," said Dr. Smith. "I fully stand behind the future of this Company, so much so that I have opted to currently receive my salary in shares of NeoStem's common stock."
PCT serves the developing cell therapy industry that includes biotechnology, pharmaceutical and medical products companies, health care providers and academic investigators from licensed, state-of-the-art cell therapy manufacturing facilities in Allendale, New Jersey and Mountain View, California. PCT supports the research of leading academic investigators designed to expedite the broad clinical application of cell therapy. PCT's core strategy is to provide an international network of cell therapy manufacturing and storage facilities and an integrated and regulatory compliant distribution capacity for the evolving cell therapy industry to meet international commercial demands and support the needs of parent NeoStem as the company transitions to a therapeutics cell based company.
For more information, please visit us at http://www.progenitorcelltherapy.com.
About NeoStem, Inc.
NeoStem, Inc. is engaged in the development and manufacturing of cell-based therapies in the U.S. Its January 2011 acquisition of Progenitor Cell Therapy, LLC ("PCT") is central to the Company's strategic mission of capturing the paradigm shift to cell therapy. The acquisition of PCT gives NeoStem not only access to a world class contract manufacturing cell therapy company but provides a platform and expertise around the evaluation, development and regulatory requirements to develop autologous, allogeneic, immunomodulatory and vaccine-based therapeutics. NeoStem also holds the 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 owns 80% of Athelos Corporation, a company developing a T-cell therapeutic with potential in a range of auto-immune conditions such as graft versus host disease, asthma and diabetes. Furthermore, NeoStem is building its Chinese presence by establishing an operations lab for cell-based manufacturing in Beijing as well as commercializing cellular therapies in China through the establishment of a network of hospitals. NeoStem also owns a majority-interest in Suzhou Erye Pharmaceutical Company Limited, a world class manufacturing and distribution operation of generic antibiotics in China.
For more information, please visit: http://www.neostem.com.
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 ability of PCT's business to complement NeoStem's adult stem cell operations and successful execution of the Company's strategy, 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, its Form S-4/A filed with the Securities and Exchange Commission on December 3, 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. NeoStem may experience difficulties in integrating PCT's business and could fail to realize potential benefits of the merger. Acquisitions may entail numerous risks for NeoStem, including difficulties in assimilating acquired operations, technologies or products, including the loss of key employees from acquired businesses.
SOURCE NeoStem, Inc.