Slide 1: NeoStem, Inc. Investor Presentation June 2011
NEOSTEM, INC. (“NBS”) Investor Presentation June 2011 NesSiem WWW.NEOSTEM.COM
Slide 2: Forward-Looking Statements
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 wh
Slide 3: About NeoStem
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 a
Slide 4: NeoStem is 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: An Enabling Transaction
An Enabling Transaction Progenitor Cell Therapy: 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 experience Manufacturing Operati
Slide 7: NeoStem: Positioning the Company as a Cell Leader
NeoStem: Positioning the Company as a Cell Leader A Strategic combination of Revenues with Manufacturing and a Global Reach: NeoStem Mission is to develop cell therapies that leverage our Expertise. ¢ Focus: Acquire assets that are Phase II ready, Prégenitor that are cell based that leverage PCT’s 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+ cell
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
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 ha
Slide 11: VSEL™ Technology is NeoStem's proprietary adult stem cell technology
VSEL™ Technology is NeoStem’s proprietary adult stem cell technolog' 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
Industry Participation in Therapeutics with industry leaders Governmental 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 NeoStem to receive $1.7 million from U.S. Army’s Medical Research and Mat
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 e 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. e 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. Orthopedics | MSCs VSEL™ Technology Wound MSCs VSEL™ Technology Cosmetic/Skin Rejuvenation MSCs VSEL™ Technology Fracture of Tibia Cart
Slide 16: NeoStem's China Affiliated Entities
: 2 NeoStem’s China Affiliated Entities A |S 1.) Network of Hospitals delivering NeoStem’s Asia licensed 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 Ma
Slide 17: Acquired 51% of Chinese generic therapeutics company, Suzhou Erye
Acquired 51% of Chinese generic therapeutics company, Suzhou Erye“) Location Suzhou China Suzhou E! Vertically-integrated manufacturer of generic antibiotic products and APIs with extensive distribution throughout China = Multiple cGMP-certified production lines — Extensive distribution network thro
Slide 18: Integrated Components Create the Foundations for Therapeutics
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 volume . Key, Partnerships in Positions
Slide 19: NeoStem is Diversified with Multiple Platforms
e 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: NeoStem Management
Robin Smith, MD MBA CEO & Chairman of the Board 3ian Zhang General Manager, Suzhou Erye Pharmaceuticals Co., Ltd Tan Zhang, PhD MBA President and Managing Director ‘NeoStem (China), Ine Larry May Ghief Financial Officer Catherine Vaczy, Esq VP and General Counsel ‘Alan Haris, MD Pao FACP FRCP Vp, Re
Slide 21: NeoStem Board Members
NeoStem Board Members Robin Smith, MD, MBA CEO & Chairman of the Board Eric Wei Managing Partner, RimAsia Capital Partners Mingsheng Shi Chairman of the Board of Suzhou Erye Pharmaceutical Steven Myers (Independent) Drew Bernstein, CPA (Independent) Richard Berman (independent) Edward Geehr, MD (Und
Slide 22: Key Financial Metrics
Key Financial Metrics Historical Income Statement ($ 000s) Balance Sheet ($ 000's) ‘Quarter Ended ‘As of 31342014 313172011 Revenue Cash & equivalents $ 9.412 Pharmaceuticals" $18,141 aay $ 50,438 Stem cell and others 1,499 re an Total revenues $19,641 Current liablities $ 40,949 Gross profit 5346 T
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 (a
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 25