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Thursday, 18 October 2012
NeoStem redeems outstanding 7% Series E Preferred Stock
NeoStem (MKT:NBS) said Wednesday that it would redeem all outstanding shares of its Series E 7% Senior Convertible Preferred Stock.
Last week, the company gave notice to its Series E Preferred stockholders that it is redeeming all of the outstanding shares of Series E Preferred Stock for $3.4 million, $2.5 million of which was funded by money placed into escrow when the Series E Preferred stock was issued in November 2010.
NeoStem is focused on accelerating the development of proprietary cellular therapies and becoming a single source for collection, storage, manufacturing, therapeutic development and transportation of cells for cell based medicine and regenerative science globally.
"We are pleased that we have been able to redeem this $10 million investment in full over a two year period. Equal to our focus on cell therapy product development and expanding our PCT contract development and manufacturing operations, we are committed to improving our balance sheet," NeoStemchairman and CEO Dr. Robin Smith.
"Through the redemption of the Series E Preferred Stock, we will remove a significant overhang and simplify NeoStem's capital structure. The redemption of the Series E Preferred Stock is another example of a step taken by us to improve Common Stockholder value.
"We look forward to continued execution on our near term business strategy, including the forthcoming closing of the divestiture of our Erye China pharmaceutical subsidiary."
A recent study published by the International Scholarly Research Network provides "further evidence" that NeoStem's lead cell therapy candidate AMR-001 "appears capable" of preserving heart muscle function.
The publication by Dr. Sabha Bhatti and colleagues, including NeoStem’s chief medical officer Dr. Andrew Pecora, examinesNeoStem's AMR-001, which showed in a phase 1 trial that it preserved heart muscle function when a therapeutic dose of cells was administered.
Owned through its subsidiary, Amorcyte, AMR-001 is a cell therapy developed to preserve heart muscle and prevent major adverse cardiac events following acute myocardial infarction (AMI), or a heart attack.
The treatment consists of a patient's own bone marrow cells, which are processed to create pharmaceutical-grade cells that are then re-injected through coronary arteries into damaged areas of the heart, six to 11 days after a patient experiences a heart attack.
Because the treatment is autologous, meaning cells are taken from the same individual that they're transplanted into, it has no risk of rejection and can provide support for an extended period of time, the company said.
NeoStem said that no patient experienced deterioration in heart muscle function who received 10 million cells or more, whereas 30 to 40 per cent of patients not receiving a therapeutic dose did.
The new study shows that cardiac muscle function sparing effects are evident even earlier after treatment than previously shown.