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Neostem Inc. (NBS) Adds Yet Another Stem Cell Research and Collection/Storage Facility to its Burgeoning Network

Some investment opportunities are slow to get rolling. In some cases the idea has just not found the right timing, while in other instances government gets in the way. Eventually each opportunity finds its place with those that stuck with it. Stem cell applications are such a market that may have found their time.

Neostem Inc., an adult stem cell development company, offers stem cell collection, storage and application services primarily in the United States and China. Additionally, the company offers prescriptive products in China and is developing a network of stem cell collection centres across the US. The company was formed in 1980 and is based in New York City.

One might not generally consider stem cell companies as candidates for vertical integration. Neostem, however, is very quickly becoming such a structure as it develops a collection system, storage system and applications for use. Once established, it will be able to collect stem cells, store stem cells, manipulate stem cells and reuse stem cells in various ways for the owner.

Currently, the company’s leading application is directed more toward rejuvenation applications although other applications are in development. Perhaps one of the leading development aspects that will help draw the company forward in this respect is the company’s relationship with ImmuneRegen BioSciences Inc. where advanced stem cell work is being accomplished. In many instances, the drive toward a vertical structure such as the one Neostem appears to have in mind are long-term in nature and never seem to appear. This is not the case where Neostem is concerned. April 27, 2010 finds the company opening another 8,000 sq/ft. collection facility, this one in the heart of Cambridge, MA. Here, storage and research will be carried out in the midst of one of the leading stem cell research areas of the world. As the centre establishes itself, plans are in the works to expand collection canters for adult stem cells to be used in rejuvenation applications or other medical procedures as directed.

Stem cell research and commercialization has been an on-going market around the world for some time. Within the US, however, there has been a certain amount of lag as politicians become more up to speed on several issues. Because of this, the company has had to supplement its revenue base through relationships in China and with other leading organizations. In China, the company has allied itself with SuzhouEyre Pharmaceuticals, a company with $61 million in antibiotic product sales, over 100 approved products by SFDA (China’s FDA) and 7 products approved or near approval in its product pipeline. Overall, each of the relationships helps to strengthen the company’s financial position.

Neostem appears to have been one of the first stem cell companies to really commit to the process and does look to be well positioned to take advantage as a new government attitude in the US accepts the advantages that they can offer.

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