NeoStem Announces Licensing Agreement and Plans to Begin Phase 2 Hepatocellular Carcinoma Trial in China

NeoStem Announces Licensing Agreement and Plans to Begin Phase 2
Hepatocellular Carcinoma Trial in China

Up to $30 Million of License Fees Could Be Received by the Company Over the
Life of the Agreement

NEW YORK, May 13, 2014 (GLOBE NEWSWIRE) -- NeoStem, Inc. (Nasdaq:NBS)
("NeoStem" or the "Company"), a leader in the emerging cellular therapy
industry, announced today that the Company has signed an exclusive license
agreement with China-based Cellular Biomedicine Group (OTCQB:CBMG) ("CBMG") to
begin a Phase 2 clinical trial in patients with late stage liver cancer. The
trial, to be conducted in China in accordance with international standards,
will investigate the use of the Company's developmentalpatient-specific
cancer immunotherapy known as "DC-TC", in patients with hepatocellular
carcinoma ("HCC").

Pursuant to the terms of the license agreement, the cost of the Phase 2 trial
will be borne by CBMG, and CBMG will also be responsible for all clinical,
marketing, and, should a product be approved, commercialization activities in
China. NeoStem will be responsible for all regulatory filings and will
directly control and manage all manufacturing processes and procedures
relating to the development of its DC-TC product. NeoStem could receive up to
$30 million in licensing milestone fees over the life of the agreement, with
$1 million payable upon enrollment of the first patient in the currently
planned Phase 2 trial. Royalties and sublicense fees may also be payable.

The Company's DC-TC therapy involves growing cancer initiating (stem) cells
that have been isolated from a patient's resected tumor sample, and then
enriching and inactivating them. This newly created cancer initiating (stem)
cell line is then combined with dendritic cells, a type of antigen-presenting
immune cell that is derived from the same patient's blood. The product is then
reintroduced to the patient via a series of subcutaneous injections.

The planned study follows a Phase 1 trial which demonstrated safety in HCC
patients. There were no serious adverse events related to the treatment in
patients who co-presented with active hepatitis B and underlying cirrhosis,
commonly associated with liver cancer in China, and patients were not charged
for treatment. "We were very pleased to have concluded a Phase 1 trial with
positive safety outcomes and look forward to continuing to work to develop
this treatment in a country where so many people are greatly affected by this
disease," said Dr. Hans Keirstead, President of NeoStem Oncology, LLC, the
Company's wholly-owned subsidiary developing targeted immunotherapies for
cancer treatment. "Patients with this stage of disease are not eligible for
curative resection or transplantation."

"The planned Phase 2 study in China is seeking to assess the efficacy and
safety of our new DC-TC platform technology in treating hepatocellular
carcinoma, and we look forward to working with CBMG to develop this indication
in Asia," said Dr. Robin L. Smith, Chairman and CEO of NeoStem. "China holds
more than 45% of the world's HCC patients, being responsible for 395,000, or
roughly 50%, of new cases in 2012."

The Company has also recently reached agreement with the U.S. Food and Drug
Administration to begin a Phase 3 clinical trial for its lead product
candidate, Melapuldencel- T, in metastatic melanoma, expected to begin in
2014. Melapuldencel-T's Phase 3 protocol has been granted Special Protocol
Assessment ("SPA") and the product candidate has received Fast Track
designation for metastatic melanoma, as well as Orphan Drug designation. Five
year survival data from the Phase 2 clinical trial in metastatic melanoma has
been accepted for a poster presentation at The American Society of Clinical
Oncology's 2014 annual meeting in June.

About the DC-TC Treatment

The Company's DC-TC treatment is based on recent clinical findings that the
rapid proliferation and subsequent spreading of cancer throughout a patient's
body may be fueled by a small number of cancer initiating (stem) cells.
Through proprietary processes, our researchers have refined isolation and
expansion of these cancer initiating (stem) cells to clinically useful
numbers, which are then combined with autologous dendritic cells, and
reintroduced into the patient with the intention of training and bolstering
the patient's immune system to target the cancer stem cells that have the
ability to metastasize and create new tumors.

About NeoStem

NeoStem is a leader in the emerging cellular therapy industry, pursuing the
preservation and enhancement of human health globally through the development
of cell based therapeutics that prevent, treat or cure disease by repairing
and replacing damaged or aged tissue, cells and organs and restoring their
normal function. The business includes the development of novel proprietary
cell therapy products as well as a revenue-generating contract development and
manufacturing service business. This combination has created an organization
with unique capabilities for cost effective in-house product development and
immediate revenue and cash flow generation. www.neostem.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements reflect management's current expectations, as of the date of this
press release, and involve certain risks and uncertainties. Forward-looking
statements include statements herein with respect to the successful execution
of the Company's business strategy, including with respect to the Company's
ability to consummate the CSC acquisition and the Company's ability to develop
and grow its business, the successful development of cellular therapies
(including in hepatocellular carcinoma) with respect to the Company's research
and development and clinical evaluation efforts in connection with the
Company's Targeted Immunotherapy Program, CD34 Cell Program and T Regulatory
Cell Program and other cell therapies, the future of the regenerative medicine
industry and the role of stem cells and cellular therapy in that industry and
the performance and planned expansion of the Company's contract development
and manufacturing business. The Company's actual results could differ
materially from those anticipated in these forward-looking statements as a
result of various factors. Factors that could cause future results to
materially differ from the recent results or those projected in
forward-looking statements include the "Risk Factors" described in the
Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission ("SEC") on March 13, 2014, the Company's Current Report on Form 8-K
filed with the SEC on May 8, 2014 and in the Company's other periodic filings
with the SEC. The Company's further development is highly dependent on future
medical and research developments and market acceptance, which is outside its
control.

CONTACT: Investor Contact:
         LifeSci Advisors, LLC
         Michael Rice
         Founding Partner
         Phone: +1-646-597-6979
         Email: mrice@lifesciadvisors.com
        
         Media Contact:
         NeoStem, Inc.
         Eric Powers
         Manager of Communications and Marketing
         Phone: +1-212-584-4173
         Email: epowers@neostem.com

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