NEW YORK, Nov. 12, 2010 /PRNewswire via COMTEX/ -- NeoStem, Inc. (NYSE Amex: NBS) ("NeoStem" or the "Company"), an international biopharmaceutical company with product and service revenues, global research and development capabilities and operations in three distinct business units, U.S. adult stem cells, China adult stem cells, and China pharmaceuticals, is today providing results of its third quarter 2010.
Third Quarter Results Revenues for the nine months ended September 30, 2010 were $51.7 million, compared to $157,700 for the comparable period of 2009. Revenues for the three months ended September 30, 2010 were $16.5 million compared to $85,100 for the same period in 2009.
For the nine months ended September 30, 2010 revenues increased 14% over the 2009 pro forma revenue of $45 million.
Net cash used in operating activities for the nine months ended September 30, 2010 was $3.2 million compared to $9.5 million for the comparable period in 2009.
During the first nine months of 2010, the Company invested $12.5 million in capital expenditures primarily related to our continuing expansion into China.
In early 2010, Erye began relocating its operations to its new state-of-the-art manufacturing facility. While the facility is not yet operating at peak efficiency, it has already begun to see increased production from the two cGMP approved lines for the manufacturing of penicillin and cephalosporin powder for injection that have historically accounted for over 70% of Erye's revenues. At its peak, the new facility is expected to provide an increase in production capacity of more than 50% over the old facility.
Additionally, the Company has begun to generate revenues from its pipeline of licensed stem cell-based regenerative medicine therapies; a key element of NeoStem's growth strategy in both the United States and China. Recently, the local authority in charge of pricing for public medical services in China approved pricing and eligibility for patients to receive reimbursement for up to 80% of the cost of an orthopedic procedure under the new technology category being administered at a leading specialist orthopedic hospital in China. This approval is a significant milestone that the Company believes will fuel its revenues from such activities and facilitate the execution of similar arrangements with other specialist hospitals in China in the near future.
Full financial information for the third quarter can be found in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 which may be found at www.sec.gov.
About NeoStem, Inc.
NeoStem, Inc. is engaged in the development of stem cell-based therapies, pursuit of anti-aging initiatives and building of a network of adult stem cell collection centers in the U.S. and China that are focused on enabling people to donate and store their own (autologous) stem cells for their personal use in times of future medical need. The Company also has licensed various stem cell technologies, including a worldwide exclusive license to VSEL(TM) Technology which uses very small embryonic-like stem cells, shown to have several physical characteristics that are generally found in embryonic stem cells, and is pursuing the licensing of other technologies for therapeutic use. NeoStem's majority-controlled Chinese pharmaceutical operation, Suzhou Erye, manufactures and distributes generic antibiotics in China. For more information, please visit: http://www.neostem.com .
Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward looking statements include statements herein with respect to the successful execution of the Company's strategy, accelerating Erye's sales growth in 2010 and successful transfer of Erye's production lines to the new facility, growth in revenues from the Company's China operations, as well as other advances in the Company's business, about which no assurances can be given. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2010 as well as other periodic filings made with the Securities and Exchange Commission. The Company's further development is highly dependent on future medical and research developments and market acceptance, which is outside its control.
For more information, please contact: NeoStem, Inc.
Robin Smith, CEO Phone: +1-212-584-4174 Email: rsmith@neostem.com Web: http://www.neostem.com SOURCE NeoStem, Inc.
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