NeoStem Closes Acquisition of Progenitor Cell Therapy
Company expects deal to bolster its presence in the stem cell industry and Asia.
NeoStem and Progenitor Cell Therapy (PCT) have closed their merger transaction. PCT’s revenue-generating business is expected to complement NeoStem’s growing adult stem cell operations.
NeoStem is a biopharmaceutical company with a 51% ownership interest in a profitable Chinese generic pharmaceutical manufacturing company and stem cell operations in the U.S. and China. PCT is a privately held cell therapy company with operations on the east and west coast of the U.S., cGMP cell therapy manufacturing facilities, and processing and storage facilities for stem cells collected from the umbilical cord at birth.
Since its inception in 1999, PCT has reportedly served over 100 clients from around the world and has experience with more than 20 different cell-based therapeutics. It says that it has performed over 30,000 cell therapy procedures in its cell therapy manufacturing facilities and processed and stored over 18,000 cell therapy products. This includes approximately 7,000 umbilical cord blood units, 10,000 blood- and marrow-derived stem cell units, and 1,000 dendritic cell units. PCT has also arranged the logistics and transportation for over 14,000 cell therapy products for clinical use by over 5,000 patients, according to the company.
“The merger with PCT is a significant step toward NeoStem’s goal of becoming a leader in the fast-growing stem cell industry, generating revenues, and developing and licensing therapies to be used in the United States and abroad,” says Robin Smith, M.D., CEO of NeoStem. “We have purchased revenues and expertise and reduced NeoStem’s prior expense line, as PCT was a vendor to NeoStem.
“We are developing 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.
“The addition of PCT will allow NeoStem to focus on growing the cord blood and adult stem cell banking, cellular manufacturing, and therapeutic business, as well as expanding our businesses in Asia and other countries while continuing to develop our intellectual property and acquire new technology.”