NeoStem's heart attack drug advances at faster pace, posts Q2 results

15th Aug 2011, 4:04 pm by Olivia D'Orazio
NeoStem's heart attack drug advances at faster pace, posts Q2 results

NeoStem (AMEX:NBS) announced Monday its AMR-001 drug for the treatment of acute myocardial infarction (AMI), or a heart attack, is progressing faster than anticipated toward phase two clinical trials.

NeoStem said it has chosen to discontinue the sale of certain drug intermediates to pharamceutical companies in order to create capacity within its existing production lines for higher margin products in the future, namely its AMR-001 drug candidate, which it received from its acquisition of Amorcyte in mid-July 2011.

Progressing toward the start of a phase two clinical trial for the treatment of AMI, the drug is an autologous stem cell treatment designed to prevent major adverse cardiac events following an AMI.

"We believe that there are data from several published clinical trials, including ours, demonstrating the potential effectiveness of a cell-based therapy for preserving cardiac function and preventing the adverse clinical events that usually follow a large myocardial infarction," said Amorcyte CSO, Dr. Andrew Pecora.

"Our clinical trial of AMR-001 yielded significant results, forming the basis for the Phase II trial."

The phase two, placebo-controlled, double blind trial is expected to enroll 150 patients earlier than the planned beginning of 2012 start date.

"We are thrilled to see Amorcyte advancing through the FDA's drug development process and moving forward with the Phase II clinical trial," added NeoStem CEO, Dr. Robin Smith.

"We see tremendous potential pharmacoeconomic benefit in this therapy, which we believe could change both the clinical adverse events associated with serious heart attacks and improve a patient's quality of life, all with one therapeutic intervention."

NeoStem's positive outlook prompted its stock on the AMEX Exchange to jump 14.17% today, to trade at $0.725 per share as of 2:31 pm EDT.

In other news, the company, which is focused on developing stem cell therapies, posted a wider loss in its second quarter, largely on the decision to discontinue certain drug intermediates in its pharmaceutical business.

For the three months ending June 30, NeoStem reported a net loss of $10.6 million, or $0.13 loss per share, compared to a $5.4 million loss, or $0.11 loss per share, a year ago.

Revenues slipped to $18.5 million, down 5% from the same period last year, mainly due to a 17% drop in sales from its China-based pharmaceutical operations.

Still, NeoStem's China-based regenerative medicine segment, which deals with obtaining product licenses covering several adult stem cell therapeutics, posted revenues of $98,700, up from nil a year ago.

Revenues from its U.S. cell therapy business, which focuses on the development of cell therapies for oncology, immunology and regenerative medicine, and hosts adult stem cell collection facilities, were $2.2 million, up from $37,800 in the year-ago period.

The company said it is continuing its transition to cell-based therapies, evidenced by its strong sales growth in its U.S.-based business.

NeoStem said that the cell manufacturing capabilities of Progenitor Cell Therapy, which it acquired in January for $20.3 million, are a key advantage in the development of AMR-001, as well as future cell-based therapeutics candidates.

No investment advice

Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".

You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here