NeoStem, Inc. (NYSE:NBS) said in a letter to shareholders that 2011 was a transformative year for the company as it looks to actively pursue strategic partnerships with major drug and biotech companies that will move the company forward in 2012 and beyond.
On October 17, 2011, NeoStem wrapped up its merger with Amorcyte. The deal called for the issuance of 5.8 million shares of NeoStem common stock and warrants and as well as the issuance of another 4 million shares given certain milestones are met.
NeoStem also completed its acquisition of Progenitor Cell Therapy. Under that deal, NeoStem acquired a 51 percent interest in the Chinese generic drug maker which has operations on the east and west coast of the U.S. and state of the art cell therapy, processing and storage facilities for stem cells collected from umbilical cords at birth.
In 2011, the company raised $16.5 million in gross proceeds which went toward working capital and as well as research and development for its cell therapeutic candidates.
Moreover, the drug maker received awards over $1.7 million in Department of Defense funding for the development to treat osteoporosis, and $245,176 from the National Institutes of Health alongside with Excell Therapeutics to progress its T, or suppressor cell regulatory program in Lupus.
Additionally, the biopharmaceutical company said that it has been marketing its subsidiary Suzhou Erye Pharmaceutical Co. for possible sale.
NeoStem also on Tuesday noted it has positioned its intellectual property portfolio to expand beyond current indicators and provide the company with a strong stance in cell therapy.
The company continues to make headway by integrating information technology systems, legal, finance and marketing to save costs and maximize efficiencies, it added.
Looking ahead, the company noted that it is actively pursuing additional strategic relationships with major drug and biotech companies in 2012.
In addition, the company said its therapeutic product development team is close to enrolling its first patient in its AMR-001 Phase 2 clinical trial for the treatment of AMI as clinical sites start to open. Its goal is to reach 160 subjects in the study over the next year, with results due roughly in mid-2013.
AMR-001 is a stem cell treatment being evaluated to treat acute myocardial infarction, or more commonly known as a heart attack.
NeoStem is developing stem cell-based therapies and anti-aging initiatives. It is building a network of adult stem cell collection centers in the U.S. and China to allow people to donate and store their own stem cells for use in a future medical need.
Shares of the company rose 2.1 cents, or 4.22 percent, climbing to 52.8 cents each today in New York.