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NBS Cell Therapy Focus Offers More Upside Potential For NeoStem

|Includes:Caladrius Biosciences, Inc. (CLBS)

ProActive Capital Resources Group has received compensation from NeoStem, to provide research and investor relations coverage for a period of time.

NeoStem (NBS) is an emerging market leader in the rapidly growing global market for cell-based therapies. The Company employs a multi-faceted strategy that combines cutting-edge contract development &manufacturing organization (CDMO) along with a cell therapy product development pipeline, providing both near and long-term growth potential.

The Company is currently conducting a Phase 2 (PreSERVE)clinical trial in the US for AMR-001 (a patient-derived bone marrow cell therapy product candidate) for the treatment of acute heart attacks (aka acute myocardial infarction or AMI). NeoStem expects to complete patient enrollment in the trial next year with initial six-month results around year-end 2013. In addition, the Company plans to begin Phase 1 clinical trials of AMR-001 for heart failure by early next year.

AMR-001 has blockbuster ($1 billion) annual sales potential using conservative estimates within the appropriate patient population suffering heart attacks in the US alone each year. According the CDC statistics, about 1.25 million people in the US experience a heart attack each year so there is a significant unmet medical need for safe and effective treatments to address the condition. The compound is protected by two issued and multiple pending US and global patents.

In mid-June, NeoStem announced a definitive agreement to divest in China pharmaceutical manufacturing operations (Erye) to become acell-therapy focused company with a stock price increase exceeding 50% since that time, resulting in a current market cap that is over $100 million as oft he market close on 10-August. The Company expects to receive $12.3 million in cash while cleaning up the balance sheet through the remove of $35 million in debt obligations through the divestiture of Erye.

NeoStem has received 50% of the cash with closing of the deal expected to occur over the next 6-10 weeks. In addition, the Company has raised $17.6 million in capital through both warrant exercises and equity sales during 2012 along with streamlining operations to further reduce ongoing cash use ($9.9 million loss from continuing operations during 1H12 vs. $20.2 million during 1H11. The Company's revenue from continuing operations has nearly doubled (+95) during the first six months of 2012 compared to the year-ago period ($7.1 million during 1H12 compared to $3.7 million during 1H11) due to success of the Company's Progenitor Cell Therapy (PCT) division.

As of 2Q12 end on 6/30/12, NeoStem reported cash and equivalents of $2.1 million, but has successfully raised an additional $7million through warrant exercises and private placements of restricted securities over the past six weeks in addition to $12.3 million in cash inflows that is expected upon closing of the Erye divestiture-representing significant sources of cash without the need for further dilution during 2H12.

Stocks: CLBS