NeoStem, Inc. (NeoStem), incorporated in September 1980, is engaged in a platform business of operating a commercial autologous (donor and recipient are the same) adult stem cell bank and in pre-disease collection, processing and long-term storage of stem cells from adult donors that they can access for their own future medical treatment. The Company manages a network of adult stem cell collection centers throughout the United States. It also entered the research and development arenas, through the acquisition of a worldwide license to an early-stage technology to identify and isolate rare stem cells from adult human bone marrow, called VSEL (very small embryonic-like) stem cells. VSELs have many physical characteristics typically found in embryonic stem cells, including the ability to differentiate into specialized cells found in substantially all the different types of cells and tissue that make up the body.
NeoStem generates revenues through upfront and annual fees from the collection centers in its network; patient collection fees; processing center collection fees; and storage fees. NeoStem provides adult stem cell processing, collection and banking services. NeoStem has been processing and storing the adult stem cells collected with its processes at its California facility. NeoStem provides the infrastructure, methods and systems that allow adults to have their stem cells collected and banked for future therapeutic use as needed in the treatment of such life-threatening diseases as diabetes, heart disease and radiation sickness that may result from a bioterrorist attack or nuclear accident.
During the year ended December 31, 2008, NeoStem focused on establishing a network of collection centers and participating physicians in certain metropolitan areas of the United States. Initial participants in the collection center network have been single physician practices who opened collection centers in California, Pennsylvania and Nevada. NeoStem provides adult stem cell processing and storage services, as well as management, expertise and other services to the collection center.
The Company processes and stores adult stem cells collected with its processes at its California facility that has a biologics license from the State of California. California requires a laboratory to be in full compliance with the American Association of Blood Banks (AABB) in order to be licensed. The Company had received two provisional licenses from the State of New York for its California facility. The first license permits the Company’s California facility to collect, process and store hematopoietic progenitor cells (HPCs) collected from New York residents. The second license permits solicitation in New York relating to the collection of HPCs. A third provisional license received in January 2008, permits the California facility to collect, process, store and use for medical research HPCs collected from New York residents
$1.7 (06/29/09)
