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NeoStem's Progenitor extends manufacturing services with two existing clients

|Includes: Caladrius Biosciences, Inc. (CLBS)

NeoStem (NYSE:NBS) announced Monday that its subsidiary, Progenitor Cell Therapy, has extended its relationships with two corporate clients, of which one will move into a final stage development program in oncology.

The deal allows Progenitor to provide commercial manufacturing capacity into a multi-million dollar market, should trials show that the client's target therapy in question helps patients suffering from certain types of cancers, NeoStem said.

Since starting out as a provider of adult stem cell collection and storage services, New York-based NeoStem has since branched out into cell therapeutics, focused on using stem cells to help cure disease.

In January, NeoStem acquired Progenitor in a $20 million deal. The company has cell therapy manufacturing facilities, as well as processing and storage facilities for stem cells collected from the umbilical cord at birth, on the east and west coast of the US.

"We are thrilled to provide support and leverage our expertise and dedicated service, comparable to what [Progenitor] has provided to Dendreon, Inc. in the recent past," said Progenitor president, Robert A. Preti.

Progenitor facilitated the manufacturing and distribution of Dendreon's Provenge, a cell-based therapy for the treatment of prostate cancer, which received FDA approval in 2010.

The Allendale, New Jersey-based company also said a second client has elected to extend a manufacturing agreement. Under the terms, Progenitor will provide additional services for this client's development program, addressing disorders of the immune system.

"Progenitor Cell Therapy and its management continue to receive validation that expertise in manufacturing is one of the critical elements in the development of cell therapies for the fields of regenerative medicine, immunology and oncology," said NeoStem CEO, Dr. Robin Smith.

Progenitor serves the developing cell therapy industry, providing support for the research and development of cell therapies.