NeoStem is an international biopharmaceutical company with operation in the U.S. and China, but with a major advantage over its developmental-stage brethren – the company has been generating profits through a pharmaceutical drug manufacturing subsidiary called Suzhou Erye NeoStem acquired last year.
Erye came with plans to construct a new plant for its penicillin and cephalosporin injection powder manufacturing operations that could provide a greater than 50% capacity over the existing plant. The two products generated over 70% of Erye’s sales in 2009 and the new plant would be a suitable relocation for ramping up pipeline products as well. In early 2010, approval came for Erye’s solvent crystallization sterile penicillin and freeze dried raw sterile penicillin to begin commencement in manufacturing these product lines, adding to 2010 and beyond sales. The plant had originally been expected to open in 2011.
NeoStem's Chairman and CEO, Robin Smith, commented, "Erye's relocation to the new facility is ahead of schedule and we are extremely excited about the increased manufacturing capabilities it will provide. Once fully certified and operational, these production lines will bring Erye another step closer to its goal of becoming one of the largest antibiotic producers in Eastern China."
Shares of NeoStem Inc. are currently trading flat at $2.36 a share.
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