|NeoStem Set To Make Accretive Acquisition of Progenitor Cell Therapy|
|By Staff and Wire Reports|
|Thursday, 23 September 2010 08:51|
Despite arranging for a press conference in New York this afternoon, Neostem Inc. (AMEX:NBS) has told Wall Street this morning that it has signed a definitive merger agreement to acquire Progenitor Cell Therapy, a privately held cell therapy company with a healthy revenue generating business that serves the cell therapy industry and played an instrumental role in manufacturing Provenge, Dendreon Corporation's autologous cellular immunotherapy through its clinical trials to FDA approval.
NeoStem, which was spending money with PCT as a client, will now be able to cut some of those costs and use the company for their own growing adult stem cell operations. In addition, this gives NeoStem their own "in-house" manufacturing facilities for cell therapy products for clinical use. In addition, it is expected that the move will increase the acquiring company's earnings per share (EPS).
Since its inception in 1999, PCT has served over 100 clients from around the world and is experienced with more than 20 different cell based therapeutics. PCT has performed over 30,000 cell therapy procedures in its cell therapy manufacturing facilities and processed and stored over 18,000 cell therapy products (including approximately 7,000 umbilical cord blood units, 10,000 blood and marrow derived stem cells and 1,000 dendritic cells) and arranged the logistics and transportation for over 14,000 cell therapy products for over 5,000 patients.
Dr. Robin Smith, CEO of NeoStem said, "We are excited to have reached this agreement with PCT and believe this combination is beneficial to the stakeholders of both companies. The acquisition is a significant step in NeoStem's efforts to develop a 'one-stop-shop' global network of cell therapy core competencies by adding cell therapy manufacturing and storage facilities as well as integrated regulatory compliant distribution capacity for the evolving cell therapy industry. PCT's global reach and reputation will accelerate the combined companies' reach into this exciting market."
The acquisition is being viewed as favorable for NeoStem's since the price paid is lower than the boost the new acquisition should provide to their EPS. In addition, the money the company will save as a (former) client of PCT should eventually pay for the transaction itself.
Company officials will be appearing at the NASDAQ MarketSite in New York City at 1:00 p.m. EDT to discuss more.
CLICK HERE to watch the event online.