CEO Interview: NeoStem, Inc. - Dr. Robin L. Smith

• On 2:03 pm EST, Monday November 2, 2009

67 WALL STREET, New York - November 2, 2009 - The Wall Street Transcript has just published its Pharmaceuticals Report offering a timely review of the sector to serious investors and industry executives. This 76-page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Small-Cap Specialty Pharma - Patent Expiration - Pending Health Care Reform - Cultivating And Expanding R&D Pipelines - Chinese Drug Manufacturers - Brisk M&A Activity - Indian Pharma VS. U.S. Pharma - Competition From Generics - FDA Approval Process - Clinical Research Outsourcing Market - Stem Cell-Based Technology - Cancer Radiation Therapy - Expansion Into Asian Markets - Traditional Chinese Medicine VS. Western Medicine In Chinese Pharma

Companies include: Aeolus Pharmaceuticals (AOLS.OB); Nutra Pharma (NPHC.OB); Quick-Med Technologies (QMDT.OB); Abbott Labs (ABT); Alexza Pharmaceuticals (ALXA); AmexDrug Corporation (AXRX.OB); Aurobindo Pharma (AUROBINDOP.BO); BioClinica (BIOC); BioPharm Asia (BFAR.OB); Biocon (BIOCON.BO); Cephalon (CEPH); China Sky One Medical, Inc. (CSKI); Claris Lifesciences (CLARICH.BO); Cortex Pharmaceuticals (COR); Daiichi Sankyo (DSKYF.PK); Dr.Reddy's (RDY); Elan (Elan); Eli Lilly (LLY); Forest (FRX); GeoPharma (GORX); Glaxo (GSK); Glenmark (GLENMARK.BO); Johnson & Johnson (JNJ); Lupin (LUPINSL.BO); Mannatech (MTEX); Matrix Laboratories (ATRIXLAB.BO); Medical Nutrition (MDNU); Merck KGaA (MKGAY.PK); Mylan (MYL); NeoStem (NBS); Novartis (NVS); Pfizer (PFE); Piramal Healthcare (PIRAMALHE.BO); Provectus Pharmaceuticals (PVCT.OB); Ranbaxy (RANBAXY.BO); Salix Pharmaceuticals (SLXP); Shire (SHPGY); Telik (TELK); Winston Pharmaceuticals (WPHM.OB).

In the following brief excerpt from the 76-page report, Dr. Robin L. Smith, CEO of NeoStem, Inc., discusses the outlook for the sector and for investors.

DR. ROBIN L. SMITH joined NeoStem as Chairman of its advisory board in September 2005, later becoming the Chief Executive Officer and Chairman of the board on June 2, 2006 Dr. Smith, who received a medical degree from Yale University in 1992 and a master's degree in business administration from the Wharton School in 1997, brings to the company extensive experience in medical enterprises and business development. From 2000 to 2003, Dr. Smith served as President and Chief Executive Officer of IP2M, a multi-platform media company that specializes in health care. During her term the company was selected as being one of the 10 fastest-growing technology companies in Houston. IP2M was sold to a publicly traded company in February 2003. Dr. Smith served on the board of directors of two privately held companies, Talon Air and Biomega, and also served on the Chemotherapy Foundation Board of Trustees and The New York Theatre Ballet. She currently serves on the board of trustees of the NYU Medical Center Board, is Chairman of the board of directors for the New York University Hospital for Joint Diseases, where she heads up new development efforts and board member recruitment, and serves on the board of Choose Living. Dr. Smith is the President and serves on the board of directors of The Stem for Life Foundation. She was originally appointed to the board of directors in June 2006 pursuant to the terms of the Securities Purchase Agreement in the June 2006 private placement.

TWST: Would you begin with an introduction to NeoStem and a description of the company, the business and the organization?

Dr. Smith: NeoStem (NBS) is an American Stock Exchange company. The Symbol is NBS. The platform business is in the collection, processing and storage of autologous adult stem cells. That means today you and I can have our stem cells collected and stored for future need. We are also engaged in a broad range of clinical research activities to support the characterization of the adult peripheral stem cells we collect in an effort to isolate specific stem cells for treating different diseases. There are over 2,600 clinical studies in the United States studying the use of stem cells to treat diseases outside of hematologic diseases, such as lupus, cardiac disease, multiple scleroses, fractures, wounds, burns, pulmonary disease, skin rejuvenation, just to name a few. So hopefully in the not too distant future, stem cells collected today can be used for therapies in the future. NeoStem is very focused on regenerative medicine and expanding into China as a part of our strategy for therapeutic development.

TWST: What's the agenda at this point? What are your priorities and what's going to make NeoStem a successful company?

Dr. Smith: The question is how will stem cell treatments affect how we treat disease in the future. Both traditional therapies as well as stem cell-based therapies are the future of NeoStem. We are partnering and expanding into China. We signed a definitive agreement in November of 2008 to acquire 51% ownership in a pharmaceutical company that has about 108 drugs, distributing to 30 provinces throughout China. This company is generating over $50 million in revenue and is very profitable. Part of our strategy is to evolve into a global therapeutic company. We are looking to develop stem cell therapies and treatments for diseases.

TWST: You last spoke to TWST in June. I see that the company has raised additional funds from the Suzhou Erye Pharmaceutical Company, and that these funds are going to be used to support expansion of your activities here as well as in China. Tell us about that. What's gone on since June?

Dr. Smith: Since April we've raised $16 million and signed a definitive agreement to purchase 51% ownership in a Chinese pharmaceutical company. We are so excited about the transaction and the future of the combined companies. The principals of the pharmaceutical company wanted more equity in NeoStem, so they invested in the recent rounds of financing. We will assist them in sourcing new drugs to sell through their distribution channel. As we develop our stem cell-based technologies in the United States, we can bring them into China and work with specialty hospitals to further develop technologies and generate revenue from stem cell-based therapies.

TWST: Would you say China is a bit more hospitable to stem cell research/storage as opposed to the U.S.? Is the regulatory environment more friendly?

Dr. Smith: I think it's just different. They have been doing stem cell therapies for very long time. The United States has regulatory hurdles and it takes longer to get technologies into the mainstream. I think the blending of the two will be very effective in bringing stem cell therapy to market. It's a tremendous area for growth. The Chinese government is very focused on health care reform, bringing new technologies to China. We are very excited to be working together to merge their acceptance and openness for alternative therapies as well as stem cell-based therapy with our need for clinical trials, data management and outcomes date to optimize treatments.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 76-page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

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