NeoStem (AMEX:NBS) announced Tuesday that Chinese generic pharma company Suzhou Erye, in which it owns a 51% majority stake, has won two awards at the 2011 Chempharm Brand Summit, having been recognized for achievement in the industry.
During the Summit held in Chengdu City, China, Suzhou received the Top 10 Anti-Infection Drug Award and the Top 100 Brand Names Award.
The positive news comes as Suzhou Erye is transitioning to its new 53,000 square metre manufacturing facility this year, which is expected to double capacity. Two additional production line approvals at the new plant are anticipated by year end.
Suzhou Erye also has five other products in its pipeline as NeoStem and the Chinese company look to in-license or acquire new drug opportunities to further expand the business.
"We are proud of Erye's many accomplishments to-date and believe the business is ideally positioned to capture the growth we see ahead," said NeoStem CEO Robin Smith.
New York-based NeoStem, with operations in both the US and China, is set to benefit from the growth of Suzhou Erye, as well as its own stem cell business.
Since starting out as a provider of adult stem cell collection and storage services, NeoStem has since branched out into cell therapeutics, focused on using stem cells to help cure disease.
In January, to enhance its portfolio of services, the company acquired Progenitor Cell Therapy, which has cell therapy manufacturing facilities, as well as processing and storage facilities for stem cells collected from the umbilical cord at birth, on the east and west coast of the US.
As a result of the acquisition, NeoStem can now develop stem cell therapies in-house, placing it in a solid position for future growth in the field.
In addition to its US and Chinese pharma business, NeoStem has also formed two lucrative partnerships with hospitals in China for its stem cell therapies for orthopedic indications.
The company has received a host of recent bullish analyst coverage, including a report issued this morning by equity research firm LifeTech Capital, which gave NeoStem a "strong buy" rating and a price target of $4.00. NeoStem was trading at $1.92 as of 3:00pm EST on Tuesday.
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