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AXcess News: Neostem Cleared for China Manufacturing, Stock Upgraded

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^{Published in Health and Fitness on Tuesday, June 29th 2010 at 13:00 GMT by Market Wire}  

NEW YORK, NY--(Marketwire - June 29, 2010) - Neostem (NYSE Amex: [ NBS ]) was cleared for manufacturing penicillin and cephalosporin powder for injection at its new manufacturing facility by China's State Food and Drug Administration. The news helped convince WBB Securities to upgrade the company from 'sell' to 'hold'.

WBB Securities initially extended coverage on Neostem on June 3, 2010 with a 'sell' recommendation, however, it should be noted that the investment banking firm [ began touting ] four other stem cell companies in late April. The fact that Neostem [ raised $5 million in cash ] through a placement in late June had no bearing on the investment banker's outlook, however, after the Chinese State Food and Drug Administration cleared the way to begin selling drugs manufactured at Neostem's new, state-of-the-art facility in China, WBB Securities analysts [ had second thoughts ] and upgraded the company's shares.

Neostem [ announced Tuesday morning ] that two of its manufacturing lines were up and running at its China pharmaceutical manufacturing unit which would increase production capacity by more than 50%. With that country's State FDA giving the green light to manufacture penicillin and cephalosporin powder for injection, sales forecasts are expected to show substantial gains.

Based on sales results for 2009 and the new manufacturing plant's increased capacity, sales could increase by more than $20 million.

Neostem founder and CEO, Dr. Robin Smith, noted that Eyre was one step closer to becoming "one of the largest antibiotic producers in Eastern China."

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