NeoStem, Inc. (AMEX: NBS) is an international biopharmaceutical company with operations in U.S. and China. Yesterday, it announced that it was added to the broad-market Russell 3000 Index with Russell Investment’s reconstitution of its comprehensive set of U.S. and global equity indexes effective June 25, according to a list of additions posted on www.russell.com. This occurrence represented an important milestone in NeoStem’s history. As part of the Russell indices, the company will have the opportunity to increase the company’s visibility within the investment community and further diversify its shareholder base.
NeoStem's majority-controlled Chinese pharmaceutical operation, Suzhou Erye, manufactures and distributes generic antibiotics in China. It announced today that on June 15, 2010 its 51% owned Suzhou Erye pharmaceutical subsidiary passed the government inspection by the State Food and Drug Administration in China to manufacture penicillin and cephalosporin powder for injection at its new manufacturing facility. These two cGMP lines were responsible for $45,000,000 of Erye's sales in 2009. The new facility now has received government certification and is fully operational and manufacturing products on these two production lines.
NeoStem's Chairman and CEO, Robin Smith, commented, "Erye's relocation of these two additional production lines to the new facility will increase capacity in the near term by more than 50%, bringing Erye another step closer to its goal of becoming one of the largest antibiotic producers in Eastern China."
To view this article at World Market Media click on the link below: http://www.worldmarketmedia.com/779/section.aspx/1971/post/neostem-inc-amex-nbs-102m-marketcap
The new facility will provide an increase in production capacity of more than 50% over the old facility. Coupled with the approval of the lines earlier in 2010, Erye has relocated over 90% of its 2009 sales to the new facility, placing the process significantly ahead of the original 2011 goal. NeoStem is currently trading at $1.95, up $0.07 or 3.72%.
Disclosure: no positions