Slide 1: NeoStem, Inc. Investor Presentation August 2010
NEOSTEM, INC. (“NBS”) Investor Presentation August 2010
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 w
Slide 3: Company Overview
Company Overview NeoStem, Inc. (NYSE Amex: NBS) Suzhou Erye- Pharmaceuticals Sty Siu Gals 51% interest acquired 100% 100% October 30, 2009 Summary Profile Ticker NBS (AMEX) 2010 Trading Range $1.26 - $3.50 Market Cap * $118.33 million Corporate Headquarters nyc Pharmaceutical Subsidiary Suzhou Erye
Slide 4: Investment Highlights
Investment Highlights « Majority ownership interest in profitable and growing pharma business = $61 million in revenues for full year 2009 (unaudited) =» 7 new products in pipeline (2 approved and pending launch) and several others under in-licensing negotiation » Relocation will increase capacity b
Slide 5: Pharmaceuticals - China
Pharmaceuticals - China
Slide 6: Large Chinese Pharmaceutical Opportunity
Large Chinese Pharmaceutical Opportunity = China announced $124 billion budget to improve healthcare system in 2009-11 = Provide universal medical service to China’s 1.3 billion population = New Rural & Urban Cooperative Medical Insurance System — at least 90% of population will be covered by 2011 =
Slide 7: Suzhou Erye — Profitable & Growing
Suzhou Erye — Profitable & Growing = Vertically-integrated manufacturer of generic antibiotic Rx products and APIs «= 8cGMP-certified production lines = Extensive distribution network throughout PRC « No significant customer concentration « 60% of current drug portfolio covered by insurance (expecte
Slide 8: Diversified Product Portfolio
Diversified Product Portfolio No singl in r >10% of sal Drugs % of Sales Acetylspiramycin 75% Oxacillin Sodium 7.2% Mezlocillin Sodium for injection 6.9% Amoxicillin Sodium & Sulbactam Sodium for injection 6.5% Cefoperazone Sodium & Sulbactam Sodium for injection 5.2% Amoxicillin & Potassium Clavula
Slide 9: Operational cGMP lines 2010
= Operational cGMP lines 2010 = Penicillin sterile API facility for solvent crystallization and freeze dried raw material = Penicillin powder for injection facility = Cephalosporin powder for injection facility = 2010/ 2011 targets = Oral API facility = Freeze dried powder for injection facility = C
Slide 10: Platform to Drive Sustainable Growth
Platform to Drive Sustainable Growth . Current pipeline of 7 Rx drugs = Two pending launch, two pending approval, three in active development « External growth strategy = Enhance R & D activities in China and the U.S. -ense drugs with proven track record that leverages new fat « Expand indications b
Slide 11: Stem Cell Business
Stem Cell Business
Slide 12: What is Regeneration?
What is Regeneration? + Self Renewing + Primitive and unspecialized + Can differentiate to cells with specific function The reactivation of developmental processes to restore missing or damaged tissues While regenerative medicine is increasingly recognized as an emerging core component of modern pra
Slide 13: Stem Cell Background
Stem Cell Background Two main of stem cells = Adult Stem Cells - isolated from adult tissues = Actas tissue repair and maintenance system = Multipotent = Reduces risk of immune rejection = Successful use in human therapies (i.e. bone marrow transplant) for 40 years = Embryonic Stem Cells - isolated
Slide 14: Adult Stem Cells
Adult Stem Cells ‘Adult Stem Cells - Act as tissue repair and maintenance systems - Multipotent - Reduces risk of immune rejection - Successful use in human therapies (i.e. bone marrow transplant) for 40 years Adult Stem Cell Sources: 9 > Bone Marrow — Autologous or Allogeneic —— OU > Cord blood — A
Slide 15: NeoStem Core Competency
NeoStem Core Competency Leading operator of commercial autologous adult stem cell bank + Pioneering pre-disease collection, processing and long-term storage of stem cells from adult donors for their own future medical treatment Growing network in major metropolitan areas in the US Safe and convenien
Slide 16: Expansive Adult Stem Cell Therapies
Expansive Adult Stem Cell Therapies Collection Process Pct usta . eacincint| skin wound = Low-dose, short course, = Identification, isolation, and stem cells and GCSF induction of stem use of very small embryonic- fibrin like stem cells (VSEL) = Collection of adult stem 5 TeMnicioeecouith e 7) os ce
Slide 17: Leverage platform to begin launching stem cell therapies in China in 2010
= Leverage platform to begin launching stem cell therapies in China in 2010 = Quicker clinical/regulatory pathway vs. U.S. = Ministry of Health instead of SFDA = More receptive of advanced therapeutics such as stem cell therapy = Broader consumer acceptance of non-traditional therapies Favorable med
Slide 18: China Stem Cells — 2010 Operational Targets
China Stem Cells — 2010 Operational Targets = Launched first stem cell therapeutic procedure in orthopedics in PRC = Wendeng launched operations in 1Q and began charging patients in June 2010 = Open first anti-aging & cosmetic treatment center in Taiwan = Enhance launched adult stem cell collection
Slide 19: US Stem Cell Initiatives
US Stem Cell Initiatives
Slide 20: Adult stem cell banking
adult stem cell bankin = Recurring revenue stream imally invasive procedure (“apheresis”) = Growing network in major metropolitan areas + Expand to ten centers by end of 2010 East and West Coast processing locations through PCT The collection and banking platform can be viewed as long-term “option”
Slide 21: VSELs: Critical Attributes
VSELs: Critical Attributes Pluripotency, without need to destroy fetus Autologous availability No risk of rejection No risk of infectious disease No risk of GVHD No risk of not finding match stem cells as needed VSELs can be mobilized from the bone marrow and collected from peripheral blood Can be c
Slide 22: NIH Grant
NIH Grant Ni tute of Arthritis QANIAMS (eiicctcttit and sn Denner National institutes of Health, Department of Health and Human October 1, 2009 NeoStem Inc Awarded a $108,746 Grand Opportunities(GO) grant under the American Recovery and Reinvestment Act (RRA)of 2009 from the NATIONAL INSTITUTE OF AR
Slide 23: Department of Defense Award
Department of Defense Award 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 $700,000 contract from the U.S. Army Medical Research and Materiel Command, Telemedicine and Advanced Technology Resear
Slide 24: NeoStem and Vatican's Pontifical Council
NeoStem and Vatican’s Pontifical Council Planned Joint Initiatives Launch International Conference at the Vatican in 2011 = Adult Stem Cell research, including VSEL™ Technology, with thought leaders from all over the world Derive potential financial resources from multiple sources to support VSEL™ T
Slide 25: What's Next for NeoStem - Opportunities
What’s Next for NeoStem - Opportunities License new stem cell technologies and pharmaceuticals = Stem cell — therapies, cells types, technologies = Pharmaceutical — generic drugs, biologics, brand or novel R&D drugs Grow API and intermediary business in pharmaceuticals Bolster intellectual property
Slide 26: Financials
Financials
Slide 27: Key Financial Metrics
{Sin 00's) Revenue Pharmaceuticals Stem cell and others, Total revenues Gross profit R&D expenses Net cash used in operations Cash & equivalents Current assets Total assets Current liabilities, Total liabilities Total equity (3) Key Financial Metrics “) NeoStem, Inc. ‘As Reported Three Months Ended
Slide 28: Equity Data (as of 7/26/10)
Equity Data (as of 7/26/10) Capitalization (Common Share Equivalent in 000s) Shares Outstanding | _% Outstanding Convertible Redeemable Series B & C Preferred stock 10 NM Common Stock 56,825 65.0% Total Warrants; Average Exercise Price $2.73 18,027 20.6% Total Options; Average Exercise Price $1.93 1
Slide 29: Management and Boards
Management and Boards
Slide 30: Key Executives
Key Executives Robin Smith, MD MBA MD - Yale; MBA —_Wharton (CEO & Chairman of the + Formerly President & CEO IP2M (HC. EVP & CMO ip (radiology Board + Trustee of NYU Medical Center; Chairman of the Board of NYU Hospital for Joint Diseases (through November 2008) ‘and Stem for Life Foundation Jian Z
Slide 31: Board of Directors
Robin Smith, MD, MBA CEO and Chairman See Key Executives Eric Wei = BS Mathematics & Economics — Amherst College; MBA — Wharton Managing Partner, + Experience — Founder/Managing Partner of RimAsia Capital Partners (private equity); RimAsia Capital Partners Peregrine Capital, Prudential Securities, L
Slide 32: Advisory Board Members
‘Wayne Marasco, MD, PhD (Chairman) = Associate P Haweré Megat Scho! Advisory Board Members 550r, Dept of Cancer and Immunology & Leading NeoStem's independent research efforts and collaborations Douglas Losordo, MD (ACC, ADA, ASGCT) Direcor ofthe Feinberg Cardiovascular Research Institute at Northwe
Slide 33: Contact Information
Contact Information NeoStem, Inc. Robin Smith, MD, MBA Chairman & CEO Phone: (212) 584-4174 Email: rsmith@neostem.com http:/Avww.neostem.com
Slide 34: NeoStem, Inc. ("NBS")
NEOSTEM, INC. (“NBS”) Investor Presentation