NeoStem Announces the Receipt of Over $1,700,000 in DOD Funding for its VSEL™ Technology Being Developed to Treat Osteoporosis
Aug 8 2011
NEW YORK, Aug. 8, 2011 -- NeoStem, Inc. (NYSE Amex: NBS) ("NeoStem" or the "Company"), an international biopharmaceutical company with a focus on cell based therapeutics development, today announced that the Department of Defense (DOD) Peer Reviewed Medical Research Program (PRMRP) of the Office of the Congressionally Directed Medical Research Programs (CDMRP) has awarded NeoStem $1,780,049 to be applied towards funding the Company's VSEL™ Technology. This award will support an investigation of a unique stem cell population, Very Small Embryonic-Like (VSEL) stem cells, for its bone building and regenerative effects in the treatment of osteoporosis. The award is being made under the Company's FY2010 Technology/Therapeutic Development Award application number PR101055.
Robin Smith, M.D., MBA, NeoStem's Chairman and CEO commented, "The receipt of this grant award validates our research efforts and the promise of VSEL™ Technology in multiple clinical applications. We are thrilled that the Department of Defense has selected NeoStem and shares our excitement and vision regarding the clinical regenerative potential of our VSEL™ Technology. Awards such as these provide both non-dilutive capital and offer external peer-reviewed validation of the value of our research platform. We believe VSEL™ Technology holds great potential, beyond bone marrow derived mesenchymal stem cell approaches as these cells hold the promise of natural pluripotency i.e. to differentiate into all three germ layers. As such, these cells have the potential to move the regenerative medical field beyond the classic paracrine mechanisms (neoangiogenesis and down-regulation of inflammation) toward tissue and bone repair and regeneration."
"This research effort has the potential to dramatically change the way in which osteoporosis and bone fracture is treated in the military and in the general population," said Dr. Russell Taichman, Professor of Dentistry, Department of Periodontics and Oral Medicine at the University of Michigan's School of Dentistry who will work with the Company on the study.
Dr. Taichman added, "Osteoporosis is a major medical condition affecting 75 million people worldwide and causing significant morbidity and mortality in the aging population and the increased incidence of fractures is the major cause of death from osteoporosis. In 2005, the estimated cost burden of fractures due to osteoporosis was $19 billion and that is expected to rise to over $25 billion by the year 2025. In addition to being a major concern for the general healthcare community, osteoporosis and related bone fractures have become a concern for the military with significant loss of duty time across all branches of the military due to related stress fractures."
Dr. Denis Rodgerson, NeoStem's Director of Stem Cell Science and Principal Investigator for the study commented, "We are honored to receive this award as it enables us, together with Dr. Taichman as co-Principal Investigator and his colleague Dr. Laurie K. McCauley, Chair, Department of Periodontics and Oral Medicine at the University of Michigan's School of Dentistry and Professor of Pathology at the University of Michigan Medical School, to explore the significant therapeutic regenerative potential for VSEL™ Technology in autologous, cell-based therapies for the treatment of osteoporosis and other diseases of the bone."
NeoStem has a worldwide exclusive license to VSEL™ Technology which uses very small stem cells found in adult bone marrow that have several physical characteristics that are generally found in embryonic stem cells. NeoStem has shown that these cells can be mobilized into the peripheral blood, enabling a minimally invasive means for collecting what NeoStem believes to be a population of stem cells that the potential to achieve the positive benefits associated with embryonic stem cells without the ethical or moral dilemmas or the potential negative biological effects associated with embryonic stem cells.
About NeoStem, Inc.
NeoStem, Inc. ("NeoStem") is engaged in the development and manufacturing of cell-based therapies in the U.S.. Its January, 2011 acquisition of Progenitor Cell Therapy ("PCT"), and its July 14, 2011 announcement of the signing of a merger agreement to acquire Amorcyte, Inc. ("Amorcyte"), position NeoStem to achieve its mission of capturing the paradigm shift to cell therapy.
PCT gives NeoStem not only access to a world class contract manufacturing cell therapy company but provides NeoStem 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™ 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. NeoStem's acquisition of Amorcyte, once the transaction is completed, will give the Company a Phase 2 asset for the treatment of Acute Myocardial Infarctions and a Phase 1 asset for Congestive Heart Failure. NeoStem will own 100% of the worldwide rights to the Amorcyte programs.
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 relationships with 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, with reported revenues of $69 million in 2010.
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 Company's successful development of its VSEL™ Technology or any other of its technologies 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 April 6, 2011, its Form 8-K filed on July 14, 2011 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.
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