NeoStem Makes Good on China Medical Tourism Initiative with Stem Cell Deal

NeoStem, Inc. (NBS), a company built on collection and storage of adult stem cells, signed an exclusive 10-year agreement with Enhance BioMedical Holdings Limited of Shanghai. Using NeoStem developed techniques, Enhance will build a stem cell collection and treatment network. The facilities are targeted for Shanghai, Taiwan, and the provinces of Jiangsu, Zhejiang, Fujian, Anhui and Jiangxi.

Jackson Ling, the CEO of Enhance BioMedical Holdings’ parent company, put $5 million into NeoStem’s recent $11 million private placement. Enhance Holding Corporation is a multinational conglomerate with interests that include healthcare.

In Taipei, Taiwan, Enhance BioMedical operates the Anti-Aging and Prevention Medical Center. It is focused on stem cell research and development and anti-aging therapies. Enhance expects to open a second center in Shanghai in the Spring of 2010, targeting high net worth individuals.

Through Enhance, NeoStem is making good on its medical tourism initiative. NeoStem wants to provide medical therapies, especially stem cell services, in China for people who cannot receive the services in their own countries

In exchange for a six figure technical assistance fee, NeoStem will train Enhance BioMedical staff in its proprietary techniques. NeoStem will also receive a royalty on gross revenues and may receive other fees in connection with helping to launch the network. Specific details of the fee arrangement were not disclosed.

NeoStem's platform provides the infrastructure, methods and systems that allow adults to have their stem cells collected and banked in a minimally invasive process.

In a statement, Jackson Ling, CEO of Enhance, positioned the centers as a service for China’s 100 million wealthy who seek anti-aging services, following the program of the already existing Taiwan center.

NeoStem has recently acquired Shandong New Medicine Research Institute, which provides regenerative medical therapies in China. NeoStem is also developing its VSEL (very small embryonic-like stem cells) technology, which was licensed from the University of Louisville.

Rim Asia was another major participant in NeoStem’s $11 million capital raise, contributing $5 million.

Disclosure: none.

Comments

[User 470851:]

This is very positive. I knew a guy who went to India for Stem cell research and I am not sure of the exact kind of reserarch but he was happy with it.

Aug 13 12:17 AM