MEDIA RELEASE PR35046
NeoStem Signs Agreement with Shanghai Corporation to Develop A Stem Cell Collection and
Treatment Network in Shanghai, Taiwan and Other Targeted China Provinces
NEW YORK, June 15 /PRNewswire-AsiaNet/ --
NeoStem, Inc. (NYSE Amex: NBS), which is pioneering the pre-disease
collection, processing and long-term storage of adult stem cells for future
medical need, announced today it has signed an exclusive 10-year agreement
with Enhance BioMedical Holdings Limited, a Shanghai corporation, to develop
a Stem Cell Collection and Treatment Network using NeoStem's proprietary
adult stem cell technologies in Shanghai, Taiwan as well as the Chinese
provinces of Jiangsu, Zhejiang, Fujian, Anhui and Jiangxi.
Enhance BioMedical Holdings is a subsidiary of Enhance Holding
Corporation, a multinational conglomerate with successful businesses in
various market sectors including healthcare. The conglomerate's CEO, Jackson
Ling, recently invested $5 million in an $11-million private placement
financing for NeoStem. Enhance BioMedical has healthcare provider
relationships with numerous hospitals and doctors in Taiwan and Shanghai, as
well as in the five provinces in China to which the Network Agreement
relates. Enhance BioMedical operates the Anti-Aging and Prevention Medical
Center in Taipei, Taiwan, with facilities focused on stem cell research and
development and anti-aging therapies. It expects to open an additional
healthcare center in Shanghai in the Spring of 2010, targeting high net worth
individuals.
The Network Agreement expands NeoStem's China-related activities, which
are focused on moving forward regenerative medical therapies and medical
tourism for people seeking high-quality treatments not available in their own
countries. Under the Network Agreement, Enhance BioMedical is given the
exclusive rights to utilize NeoStem's proprietary adult stem cell
technologies identified by NeoStem from time to time to provide adult stem
cell services and therapies in the Asian territory. NeoStem will train
Enhance BioMedical staff in the proprietary knowledge, technology and
operating procedures to provide Enhance clients with these services. In
return, NeoStem is entitled to a six figure technical assistance fee. NeoStem
also will be entitled to a stated royalty on gross revenues generated by
Enhance from providing the NeoStem stem cell services for the duration of the
renewable 10 year Network Agreement and also may receive other fees in
connection with assisting in the launching of the network.
Robin Smith, M.D., MBA, NeoStem's Chief Executive Officer, said, "We are
very pleased to form this alliance with Enhance Biomedical Holdings. It
advances our strategy of collaboration with China-centered enterprises and
will expand internationally our network of adult stem cell collection centers
in key metropolitan areas in the United States. We believe our overall
international strategy will create strong commercial, financial and
scientific opportunities for NeoStem, enabling us to accelerate our stem cell
therapy, research and development activities and create intellectual property
positions in environments that are accepting of stem cell science and
therapies while maintaining the rigorous standards adhered to in the United
States for new technologies."
NeoStem's platform business provides the infrastructure, methods and
systems that allow adults to have their stem cells safely collected and
conveniently banked through safe, minimally invasive processes that can take
place in a doctor's office, clinic, academic medical center or hospital that
is part of a developing nationwide network of NeoStem Collection Centers.
Jackson Ling, CEO of Enhance Holding Corporation, said, "We are very
excited to form this alliance with NeoStem, Inc. I have been greatly
impressed with the forward thinking of this company's leadership and with the
commercial potential for NeoStem technologies and services in Taiwan and
China. China has a population of 1.3 billion people, and although the GDP is
low, it still has more than 100 million wealthy people who care very much
about their health. NeoStem's stem cell technologies fit our requirements for
new leading-edge health centers focused on anti-aging and prevention. We
passed the anti-aging program using stem cell treatment information on to our
club members one month ago and already have 1,000 people on a wait list for
such services. We are pleased to begin what we expect to be a long-term
collaboration."
About NeoStem, Inc.
NeoStem is developing a network of adult stem cell collection centers
that are focused on enabling people to donate and store their own
(autologous) stem cells when they are young and healthy for their personal
use in times of future medical need. The Company has also entered into
research and development through the acquisition of a worldwide exclusive
license to technology to identify and isolate VSELs (very small
embryonic-like stem cells), which have been shown to have several physical
characteristics that are generally found in embryonic stem cells and is
pursuing other technologies to advance its position in the field of stem cell
tissue regeneration.
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. The Company's
actual results, including the realization of the financial and other benefits
from the establishment of the network agreement with respect to its adult
stem cell technologies 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 for the fiscal year
ended December 31, 2008 and the Company's other periodic filings 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.
CONTACT:
NeoStem, Inc.
Robin Smith, Chief Executive Officer
T: 212-584-4180
E: rsmith@neostem.com
SOURCE: NeoStem, Inc.
CONTACT: Robin Smith,
Chief Executive Officer,
NeoStem, Inc.,
+1-212-584-4180,
rsmith@neostem.com
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