NeoStem Reports First Quarter 2012 Results and Provides Business Update May 11 2012
New York, May 11, 2012 -- NeoStem, Inc. (NYSE Amex:NBS) ("NeoStem" or the "Company"), an international biopharmaceutical company focused on cell based therapies, today announced first quarter 2012 results and provided an update on its business.
Consolidated revenues for the three months ended March 31, 2012 were $22.1 million, compared to $19.6 million for the same period in 2011. The Company's consolidated net loss for the three months ended March 31, 2012 was $9.2 million, compared to $9.7 million for the same period in 2011. The Company's consolidated net loss for 2012, excluding non-cash charges, was $2.7 million (see reconciliation below). Net loss attributable to NeoStem common shareholder interests for the three months ended March 31, 2012 was $9.5 million, or $0.08 per share.
As of March 31, 2012, the Company had between its U.S. and China operations consolidated cash and cash equivalents of $21.8 million, and an additional $2.5 million in cash held in escrow (classified in Other Assets).
NeoStem's management remains focused on its key objectives of expanding its stem cell therapeutic contract manufacturing business (PCT), enrolling patients in the PreSERVE AMR-001 Phase 2 clinical trial for preserving heart function after a heart attack, and monetizing its China pharmaceutical subsidiary through divestiture to bring maximum value to the shareholders. While continuing to develop and build on its core capabilities in cell therapy to capitalize on the paradigm shift that is occurring in medicine, the Company will continue to focus on its key initiatives and has discontinued or will discontinue operations that do not have a regulatory pathway consistent with traditional drug development.
|GAAP to Non-GAAP Reconciliations for the three months ended March 31, 2012|
|Consolidated Net Loss Excluding Non-Cash Charges Reconciliation|
|Consolidated Net Loss||$ (9,206,868)|
|Non-cash charge adjustments per Cash Flow Statement:|
|Common stock, stock options and warrants issued||2,476,666|
|Depreciation and amortization||2,170,111|
|Amortization of preferred stock discount and issuance cost||471,934|
|Changes in fair value of derivative liability||(87,291)|
|Loss on exit of segment||1,138,006|
|Non-cash interest expense||335,107|
|Bad debt expense||347,927|
|Deferred income taxes||(325,905)|
|Consolidated Net Loss Excluding Non-Cash Charges||$ (2,680,313)|
About NeoStem, Inc.
NeoStem, Inc. ("we," "NeoStem" or the "Company") continues to develop and build on its core capabilities in cell therapy to capitalize on the paradigm shift that we see occurring in medicine. In particular, we anticipate that cell therapy will have a large role in the fight against chronic disease and in lessening the economic burden that these diseases pose to modern society. Our January 2011 acquisition of Progenitor Cell Therapy, LLC ("PCT") provides NeoStem with a foundation in both manufacturing and regulatory affairs expertise. We believe this expertise, coupled with our existing research capabilities and collaborations, will allow us to achieve our mission of becoming a premier cell therapy company. Our PCT subsidiary's manufacturing base is one of the few current Good Manufacturing Practices ("cGMP") facilities available for contracting in the burgeoning cell therapy industry. Amorcyte, LLC ("Amorcyte"), which we acquired in October 2011, is developing a cell therapy for the treatment of cardiovascular disease. Amorcyte's lead compound, AMR-001, represents NeoStem's most clinically advanced therapeutic and is enrolling a Phase 2 trial to investigate AMR-001's efficacy in preserving heart function after a heart attack. We also expect to begin a Phase 1 clinical trial by 2013 to investigate AMR-001's utility in arresting the progression of congestive heart failure and the associated comorbidities of that disease. Athelos Corporation ("Athelos"), which is approximately 80%-owned by our subsidiary, PCT, is engaged in collaboration with Becton-Dickinson that is exploring the earlier stage clinical development of a T-cell therapy for autoimmune conditions. In addition, our pre-clinical assets include our VSELTM Technology platform as well as our MSC (mesenchymal stem cells) product candidate for regenerative medicine.
For more information on NeoStem, please visit 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 successful execution of the Company's business and medical strategy, including with respect to the development of AMR-001 and other cell therapies and its divestiture of its interest in Suzhou Erye Pharmaceutical Co., Ltd. about which no assurance 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 20, 2012 and in the Company's 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.