Health & Fitness
Health and Fitness
Health and Fitness
Wed, June 30, 2010
Tue, June 29, 2010 Significance of Neostem's Latest Announcement: More Revenue
LOS ANGELES, CA--(Marketwire - June 29, 2010) - Neostem (
BioMedReports.Com, the news portal which covers Wall Street's biomedical sector and delivers financial and investment intelligence to a community of highly informed investors is reporting that these two products were responsible for over 70% of NBS' Chinese pharmaceutical revenues ($45,000,000 of Erye's sales in 2009) and today's announcement by the company signals that the already impressive revenue stream now appears to have become even bigger.
According to the published report, Neostem's shares have been over-reacting to fear of dilution from a recent financing, but after this morning's news, the upside potential even has some of the company's critics upgrading them.
Investors didn't seem to like the innovative credit line deal that NeoStem struck a few weeks ago, and the latest financing dog's bark appears to be much worse than its bite, according to analysts who follow the sector.
"Most of these finance deals include 100% warrant coverage," writes M.E. Garza. "This one only handed the accredited investors who funded the deal 25% warrant coverage. That's far, far less dilutive than a majority of the deals we see in the sector."
Still, why do this financing now, at these prices?
Robin Smith, the CEO of Neostem, told BioMedReports this morning: "We were offered capital from 2 funds which would allow us to be opportunistic and pursue additional revenue generating activity. We believe that the dilution will be outweighed by the benefits of these future activities."
According to the report, many investors feel that unless the company has a major deal in play and getting ready to be announced, it makes little sense for them to load up with financed funds, regardless of the price or dilution. Given Smith's response, it appears that the company wants that cash for something that's about to make them more even more money.
Investors can find the full report and read details about these developments at BioMedReports.Com
Biotech investors interested in accessing the news portal's complete database of clinical trials and upcoming FDA decisions can access that information here:
[ http://biomedreports.com/fda-calendar/fda-calendar.html ]
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