Seeking Alpha

RedChip's  Instablog

RedChip
Send Message
RedChip's long history of success includes the first to issue independent research coverage on Starbucks in 1992. Other names RedChip discovered as they were on the cusp of becoming Blue-Chip stocks were: Nike™, MarketWatch.com™, Daktronics™. Over the years, RedChip has evolved into a... More
My company:
RedChip Companies, Inc.
My blog:
Smallcap Ideas
  • NeoStem: Catalysts In Place To Move Shares Higher 0 comments
    Dec 18, 2012 3:19 PM | about stocks: NBS

    NeoStem, Inc. (NYSE MKT: NBS) topped Deloitte's 2012 Technology Fast 500 for the Tri-State region in New York in November. Nationally, NBS was ranked number seven on the list. Deloitte's Technology Fast 500 ranks the 500 fastest growing technology, media, telecommunications, life sciences and clean tech companies in North America.

    Cell therapy represents a paradigm shift in medicine and is expected to have major impact in the fight against chronic disease, lessening the burden that these diseases pose to modern society. NBS is an emerging leader in this fast growing industry.

    "NeoStem as a company is leading the way in an innovating space that is breaking barriers and producing results," stated Brian Nichols, a Seeking Alpha Certified contributor. "In the last year alone, the company has sold its generic pharmacy business in China, announced very strong and encouraging data for its lead product AMR-001, showed clinical data for a study on its very promising VSEL Technology, and has seen a significant rise in the revenue of its manufacturing segment with a growing clientele."

    NBS's most clinically advanced therapeutic, AMR-001, is being developed at its Amorcyte subsidiary, which was acquired by the Company in October 2011. AMR-001 is an autologous adult stem cell therapy for the prevention of heart muscle deterioration following heart attacks. Initial data readouts from the Phase 2 trial of AMR-001 are expected in 2013. This is a potential $1 billion product that should result in good upside in upcoming quarters.

    Underlying this potential blockbuster is a strong growth in the Company's manufacturing business, PCT Cell Therapy Services ("PCT"). The addition of clients such as SOTIO, currently in Phase 3 trials, drove year-over-year sales growth to nearly 100% in the third quarter. Together with other late stage, large trail customers, NBS should be able to maintain continued growth at PCT in 2013.

    Another strong catalyst for share price improvement in 2013 is the recent divestiture of the Company's generic pharmacy in China. NBS received $12 million in cash and eliminated more than $30 million in debt with the transaction. Adding in the strong cash position from the most recent quarter end, this places NBS on solid financial footing, removing the need for financing for the foreseeable future.

    Tying all of these catalysts together is an impressive management team and advisory board led by the chairman and CEO, Dr. Robin Smith, who has guided the Company through six acquisitions and completed more than $100 million in capital raises since joining the Company in 2006. Dr. Smith is also president and director of The Stem for Life Foundation, where in collaboration with The Vatican's Pontifical Council she co-authored "The Healing Cell: How the Greatest Revolution in Medical History Is Changing Your Life."

    To learn more about this dynamic organization and its goal of becoming a top-tier biopharmaceutical company, view a presentation by Dr. Smith from RedChip's December virtual conference.

    Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

    Themes: Stem cells Stocks: NBS
Back To RedChip's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.