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The strategic investor consists of principals of Erye Pharmaceutical Co.Ltd ("Erye"), a more than 50-year old pharmaceutical company located inSuzhou, China. Erye currently manufactures over 100 drugs on seven GoodManufacturing Practices (GMP) lines, including small molecule drugs. Erye hasbegun its three year expansion and relocation program which is anticipated toenhance revenues, profits, and manufacturing capabilities in one of thefastest growing medical markets, the Peoples Republic of China. "We believeNeoStem and its management can guide us in identifying therapeutics and assistus in bringing them to the PRC market in an effort to enhance our drugpipeline," said Madame Zhang Jian, General Manager of Erye.
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"We are extremely pleased by the vote of confidence this above marketequity purchase demonstrates by our future partner in drug development inChina," said Robin Smith, MD, MBA, Chairman and Chief Executive Officer ofNeoStem.
"In November 2008, NeoStem agreed to acquire CHBP(OTC Bulletin Board: CHBP), which will give NeoStem a 51% controlling interestin Erye and should help to ultimately provide a stable balance sheet forgrowth. NeoStem will not only have an interest in traditional therapies inChina through the Erye acquisition, but will be able to expand its therapeuticreach through a second acquisition in China, Shandong New Medicine ResearchInstitute, which currently administers a multitude of treatments and is aleading provider of regenerative medical therapies in China. In the meantime,we are wasting no time in moving forward the development of our VSELtechnology and launching our adult stem cell collection network in theimportant New York City market. We believe one day VSELs could be the basisfor individualized stem cell based therapies that could be rolled out in acountry such as China that has been more rapidly advancing the use of suchtherapies," added Dr. Smith.
The funds from the financing will be utilized in support of the furtherdevelopment of the VSEL technology, the launch of the NeoStem network adultstem cell collection center in New York City as well as general corporatepurposes.
The securities sold in the private placement were sold withoutregistration under the Securities Act of 1933, as amended and may not beresold unless subsequently registered under the Act or pursuant to anexemption from registration under the Act.
About NeoStem, Inc.
NeoStem is developing a network of adult stem cell collection centers thatare focused on enabling people to donate and store their own (autologous) stemcells when they are young and healthy for their personal use in times offuture medical need. The Company has also entered into research anddevelopment through the acquisition of a worldwide exclusive license totechnology to identify and isolate VSELs (very small embryonic-like stemcells), which have been shown to have several physical characteristics thatare generally found in embryonic stem cells.
Forward-Looking Statements
This press release contains forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995. Forward-lookingstatements reflect management's current expectations, as of the date of thispress release, and involve certain risks and uncertainties. The Company'sactual results could differ materially from those anticipated in theseforward-looking statements as a result of various factors. Factors that couldcause future results to materially differ from the recent results or thoseprojected in forward-looking statements include whether the closing conditionsfor the Company's two acquisition transactions in China are met and theacquisitions successfully close, whether the VSEL technology leads tomarketable therapeutic products, whether the New York City collection centerbecomes a successful collection facility and those set forth under "RiskFactors" described in the Company's periodic filings with the Securities andExchange Commission.Contact: NeoStem, Inc. Robin Smith, Chief Executive Officer T: 212-584-4180 E: [email protected] www.neostem.com
SOURCE NeoStem, Inc.
