Slide 1: NeoStem, Inc. Investor Presentation June 2011
NEOSTEM, INC. (“NBS”) Investor Presentation June 2011
Slide 2: Forward-looking statements
Included in this presentation are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as well as historical information. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual re
Slide 3: About NeoStem
2 About NeoStem NeoStem is becoming a leader in the cell therapy space. The acquisition of Progenitor Cell Therapy (PCT) provides NeoStem core expertise in all elements of cell manufacturing and positions the company to transition to a developer of therapeutics. These efforts are supported by a cord
Slide 4: Positioned to be a leader in the paradigm shift to cell-based therapeutics
About NeoStem NeoStem is Positioned to be a leader in the Paradigm Shift to Cell-Based Therapeutics
Slide 5: Cell-based Therapy Is Considered The Next Frontier
Cell-based Therapy Is Considered The Next Frontier & ... Is Happening Now! Catch the Paradigm Shift! * Cell-based therapy approaching an inflection point, with establishment of proof-of-concept + Follow the number of cell therapeutics within the regulatory pathway (phase 1-3) + From the origins of b
Slide 6: Progenitor Cell Therapy: An Enabling Transaction
2 Progenitor Cell Therapy: An Enabling Transaction In January 2011, NeoStem completed the equity-based acquisition of Progenitor Cell Therapy (PCT) Which Added Manufacturing, Regulatory Expertise and a Therapeutics Pipeline 10 years of e PCT is a World Class Cell Based Berenice Manufacturing Operati
Slide 7: NeoStem: Positioning the Company as a Cell Leader
2 NeoStem: Positioning the Company as a Cell Leader A Strategic combination of R Jes with Manufacturing and a Global Reach: NeoStem Mission is to develop cell therapies that leverage our Expertise. ° e Focus: Acquire assets that are Phase II ready, Prégenitor’ that are cell based that leverage PCT’s
Slide 8: Dendreon: Provenge for Prostate Cancer
Dendreon: Provenge for Prostate Cancer +Leukapheresis, enrichment of monocytes, NK, B and T cells *Cells incubated with antigen delivery cassette (PAP-GMCSF fusion protein) +Potency determined by measuring surface expression of CD54/ICAM-1 *Cells re-infused into patients (minimum 50 million CD34+ ce
Slide 9: Athelos: A T-reg Cell Strategy
2 Athelos : A “T-reg” Cell Strategy e Athelos is an 80% owned subsidiary of NeoStem (through PCT). Athelos is developing an autologous T regulatory cells (T-reg) therapeutic. e Athelos' T-reg therapy represents a novel approach for restoring immune balance by enhancing T-reg cell number and function
Slide 10: VSEL Technology: In Search of the Holy Grail
2 VSEL™ Technology: In Search of the Holy Grail VSEL™ technology is NeoStem’s proprietary adult stem cell technology with exclusive worldwide license from the University of Louisville which is based on very small embryonic-like (VSEL) stem cells. According to scientific literature, VSEL™s appear to
Slide 11: VSEL Technology is NeoStem's proprietary adult stem cell technology
VSEL™ Technology is NeoStem’s proprietary adult stem cell technology with exclusive worldwide license from the University of Louisville Isolated from a patients own bone marrow, peripheral blood, or cord blood Demonstrates pluripotency and somatic imprinting Small volume of very small embryonic-like
Slide 12: Industry, Governmental, Academic and Religious Partners
Industry e Participation in Therapeutics with industry leaders Governmental e NeoStem to receive $700,000 from the U.S. Army's Medical Research and Materiel Command to advance adult stem cell therapies in treating traumatic wounds e NeoStem to receive $1.7 million from U.S. Army’s Medical Research a
Slide 13: Patent & Patent Applications
Patent & Patent Applications NeoStem is aggressively seeking international patent protection for its own technologies. Additionally, NeoStem sponsors research activities at various academic institutions pursuant to which it is given the right to license exclusively certain inventions resulting from
Slide 14: Progressive Stem Cell Environment in China
2 Progressive Stem Cell Environment in China * Favorable clinical and regulatory environment — Greater receptivity toward advanced therapeutics such as stem cell therapy - Actively seeking innovative technologies and therapies from the U.S. * Large and rapidly growing Chinese health care market goin
Slide 15: Commercialization in China
Commercialization in China Goal: Developing cellular therapy platform in China to generate revenues today and serve as a stepping stone for expansion in the future. Cells Used Currently Potentia Cosmetic/Skin Rejuvenation Orthopedics MSCs VSEL™ Technology Wound MSCs VSEL™ Technology MSCs VSEL™ Techn
Slide 16: Network of hospitals delivering adult stem cell technology
1.) Network of F jitals delivering 's Asia li Adult Stem Cell technology for Orthopedics using MSCs 1.) Wendeng Hospital - Launched June 2010 2.) Shijianzhuag - Third Hospital signed December 2010 3.) A third hospital in Tianjin signed in May 2011 2.) Building in Beijing - Laboratory Facility for pr
Slide 17: Suzhou Erye — Profitable & Growing
Suzhou Erye — Profitable & Growing Acquired 51% of Chinese generic therapeutics company, Suzhou Erye“) Location Suzhou China Suzhou Erye tegrated manufacturer of generic roducts and APIs with extensive distribution throughout China — Multiple cGMP-certified production lines — Extensive distribution
Slide 18: Summary of NeoStem Business Strategy
Summary of NeoStem Business Strategy Integrated Components Create the Foundations for Therapeutics ¢ PCT is an Industry Leader in Cell Based Manufacturing - Pioneered the Manufacturing of Dendreon’s Provenge = Working with other Industry Leaders - Currently break even business poised to leverage vol
Slide 19: NeoStem is Diversified with Multiple Platforms
¢ NeoStem is Diversified with Multiple Platforms Positioned to Capture the Paradigm Shift to Cell based Medicine - Differentiated Cell Therapeutics Platform Company - Core Expertise in a wide range of cell based therapeutics from dendritic Vaccines to Autologous Stem Cell therapies - Financial Lever
Slide 20: Management Team
Robin Smith, MD MBA. CEO & Chairman of the Board Bian Zhe al Manager, Suzhou Ene Pioriecaisene co Tan Zhang, PhD MBA President and Managing Director NeoStem (China), Inc Larry May Chiet Financial Officer Catherine Vaczy, Es Vp and General Counsel Alan Harris, MD PhD FACP FRC rp, Regenerative Medicin
Slide 21: Board of Directors
Board of Directors Robin Smith, MD, MBA CEO & Chairman of the Board Eric Wei Managing Partner, RimAsia —* Capital Partners Mingsheng Shi 2 Chairman of the Board of . Suzhou Erye Pharmaceutical» Steven Myers (Independent) . Drew Bernstein, CPA . (Independent) . ichard Berman . (Independent) Edward Ge
Slide 22: Financial Metrics
7 Financial Metrics Historical Income Statement ($ 000’s) Balance Sheet ($ 000’s) As Quarter Ended of 3/31/2011 3/31/2011 Revenue Cash & equivalents $ 9,412 Pharmaceuticals** $ 18,141 Ginnie $ 50,438 Stem cell and others 1,499 Total assets oTeE Total revenues $19,641 Current liabilities $ 40,949 Gro
Slide 23: Capitalization Table
Capitalization Table NeoStem Capitalization Table Capitalization (Common Share Equivalent in 000s) Shares Outstanding % Outstanding Common Stock 80,815 62.4% Total Preferred Shares (common share equivalents) 4,790 3.7% Total Warrants (average exercise price $2.86) 24,901 19.2% Total Options (average
Slide 24: Catalysts Ahead ...
Catalysts Ahead ... Seeking partnerships, licensing agreements or acquisition of Phase 2 ready assets Anticipate growth on cord and adult stem cell collections and storage business units. Anticipate growth in cell contract manufacturing revenues to grow as existing clients products move to the next
Slide 25: Contact Information
Contact Information NeoStem, Inc. Robin Smith, MD, MBA Chairman & CEO Phone: (212) 584-4174 Email: rsmith@neostem.com http://www.neostem.com