Investor Relations (IR) Questions: Neostem Inc $NBS
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Answers received: February 2013
NeoStem has the potential to radically change the face of how diseases are treated, leading to longer and, more importantly, higher quality lives. We do this by taking part in the paradigm shift we believe is underway toward cell therapy – a shift away from treating disease with drugs and towards treating disease with our own cells; a shift away from treating symptoms and toward cures for the illnesses that cause the most suffering; a shift away from chemical drug development and toward looking inside ourselves to understand and then amplify our body’s natural repair mechanisms. NeoStem is not the only company on this track (analysts estimate that the worldwide regenerative medicine market will grow from approximately $50 billion to over $100 billion by 2020) and we are uniquely positioned to capture the value of this market and become a leading player.
The opportunity for existing and new NeoStem shareholders is substantial. In the midst of global economic uncertainty, NeoStem has assembled a multifaceted business plan that can drive top revenue growth through its PCT CDMO business while investing in dynamic cell therapy development programs. The Company's service business and pipeline of proprietary cell therapy products work synergistically, giving NeoStem a competitive advantage that is unique in the biotechnology and pharmaceutical industries. Supported by an experienced scientific and business management team and a dynamic patent and patent pending intellectual property portfolio, NeoStem is well-positioned for future success. Company management will continue to seek business opportunities that will strengthen the Company and looks forward to achieving success for its investors with the goal of achieving the level of one of the world's top tier biopharmaceutical companies.
1) When is the last time NBS raised cash through an offering (diluted)?
In March 2012, NBS raised 6.8m dollars from a RD. Since then money has been raised through warrant exercises and small pipe transactions
2) How much cash (not cash equivalents) does NBS have?
As of Nov 13th $7.9 plus 12.3 m from sale of Erye
3) What and approximately when is the next known catalyst?
a. Half way point of the Phase 2 STEMI trial enrollment
b. Growth in the PCT business
i. New clients
ii. Renewal and/or expansion of services with current clients
iii. Expansion into Europe
c. Progress in VSEL™ technology
i. Publications
ii. Grants
d. Strategic acquisitions
e. Business development transactions
4) What is NBS's quarterly cash burn? As of Sept 2012 the quarterly cash loss was $5.2m (pre sale of china)
9 Month Net Loss from Continuing Operations Excluding Non-Cash Charges
$ 15,644,124
5) Does NBS have an existing line of credit and if so how much can they draw against it?
NBS has a $20m Aspire equity Line
Net loss from continuing operations attributable to NeoStem common shareholder interests for the three and nine months ended September 30, 2012 was $8.5 million and $23.5 million, respectively, or $0.06 and $0.18 per share, compared to $6.5 million and $26.7 million, or $0.07 and $0.32 per share for the three and nine months ended September 30, 2011. The Company's loss from continuing operations for the nine months ended September 30, 2012, excluding non-cash charges, was $15.6 million (see reconciliation below). Management believes the Erye divestiture should reduce legal and financial reporting cost going forward.
GAAP to Non-GAAP Reconciliations
Nine Months Net Loss from Continuing Operations Excluding Non-Cash Charges Reconciliation
Loss from continuing operations
$ (23,765,160)
Common stock, stock options and warrants issued
5,471,166
Depreciation and amortization
1,160,596
Amortization of preferred stock discount and issuance cost
1,195,217
Changes in fair value of derivative liability
(46,910)
Loss on disposal of assets
12,964
Bad debt expense
328,003
Net Loss from Continuing Operations Excluding Non-Cash Charges
$ (15,644,124)
Cash as of September 30, 2012 Reconciliation
Cash and cash equivalents
$ 5,390,611
Cash held in escrow as security for the Series E 7% Convertible Preferred Stock
2,500,000
Cash as of September 30, 2012
$ 7,890,611
NeoStem has the potential to radically change the face of how diseases are treated, leading to longer and, more importantly, higher quality lives. We do this by taking part in the paradigm shift we believe is underway toward cell therapy – a shift away from treating disease with drugs and towards treating disease with our own cells; a shift away from treating symptoms and toward cures for the illnesses that cause the most suffering; a shift away from chemical drug development and toward looking inside ourselves to understand and then amplify our body’s natural repair mechanisms. NeoStem is not the only company on this track (analysts estimate that the worldwide regenerative medicine market will grow from approximately $50 billion to over $100 billion by 2020) and we are uniquely positioned to capture the value of this market and become a leading player.
The opportunity for existing and new NeoStem shareholders is substantial. In the midst of global economic uncertainty, NeoStem has assembled a multifaceted business plan that can drive top revenue growth through its PCT CDMO business while investing in dynamic cell therapy development programs. The Company's service business and pipeline of proprietary cell therapy products work synergistically, giving NeoStem a competitive advantage that is unique in the biotechnology and pharmaceutical industries. Supported by an experienced scientific and business management team and a dynamic patent and patent pending intellectual property portfolio, NeoStem is well-positioned for future success. Company management will continue to seek business opportunities that will strengthen the Company and looks forward to achieving success for its investors with the goal of achieving the level of one of the world's top tier biopharmaceutical companies.
1) When is the last time NBS raised cash through an offering (diluted)?
In March 2012, NBS raised 6.8m dollars from a RD. Since then money has been raised through warrant exercises and small pipe transactions
2) How much cash (not cash equivalents) does NBS have?
As of Nov 13th $7.9 plus 12.3 m from sale of Erye
3) What and approximately when is the next known catalyst?
a. Half way point of the Phase 2 STEMI trial enrollment
b. Growth in the PCT business
i. New clients
ii. Renewal and/or expansion of services with current clients
iii. Expansion into Europe
c. Progress in VSEL™ technology
i. Publications
ii. Grants
d. Strategic acquisitions
e. Business development transactions
4) What is NBS's quarterly cash burn? As of Sept 2012 the quarterly cash loss was $5.2m (pre sale of china)
9 Month Net Loss from Continuing Operations Excluding Non-Cash Charges
$ 15,644,124
5) Does NBS have an existing line of credit and if so how much can they draw against it?
NBS has a $20m Aspire equity Line
Net loss from continuing operations attributable to NeoStem common shareholder interests for the three and nine months ended September 30, 2012 was $8.5 million and $23.5 million, respectively, or $0.06 and $0.18 per share, compared to $6.5 million and $26.7 million, or $0.07 and $0.32 per share for the three and nine months ended September 30, 2011. The Company's loss from continuing operations for the nine months ended September 30, 2012, excluding non-cash charges, was $15.6 million (see reconciliation below). Management believes the Erye divestiture should reduce legal and financial reporting cost going forward.
GAAP to Non-GAAP Reconciliations
Nine Months Net Loss from Continuing Operations Excluding Non-Cash Charges Reconciliation
Loss from continuing operations
$ (23,765,160)
Common stock, stock options and warrants issued
5,471,166
Depreciation and amortization
1,160,596
Amortization of preferred stock discount and issuance cost
1,195,217
Changes in fair value of derivative liability
(46,910)
Loss on disposal of assets
12,964
Bad debt expense
328,003
Net Loss from Continuing Operations Excluding Non-Cash Charges
$ (15,644,124)
Cash as of September 30, 2012 Reconciliation
Cash and cash equivalents
$ 5,390,611
Cash held in escrow as security for the Series E 7% Convertible Preferred Stock
2,500,000
Cash as of September 30, 2012
$ 7,890,611
