Evaluating bone defect repairs using human stem cells: NeoStem, University of Michigan enter into SRA

NeoStem, Inc. (NYSE Amex: NBS) ("NeoStem" or the "Company"), an international biopharmaceutical company with operations in the U.S. and China, announced today that it has entered into a sponsored research agreement (SRA) with the University of Michigan to evaluate bone defect repairs using human stem cells. The one-year project, beginning in March, will be funded through the proceeds of a $108,746 grant from the National Institutes of Health (NIH) under the Small Business Innovative Research Program (SBIR). Under terms of the SRA, NeoStem will have the first option to license discoveries stemming from the project.

Funding from this grant will support the study of the potential of very small embryonic-like stem cells to form bone in an animal model and regenerate a critical sized bone defect using NeoStem's proprietary VSEL(TM) Technology. Very small embryonic-like stem cells are a heterogeneous population of stem cells found in adult bone marrow that have properties similar to those of embryonic stem cells. These cells have the potential to achieve the positive benefits associated with embryonic stem cells without the ethical or moral dilemmas or certain of the potential negative effects associated with embryonic stem cells. The effort at the University of Michigan will be led by principal investigator Dr. Russell Taichman, Professor of Dentistry, Department of Periodontics and Oral Medicine at the University of Michigan School of Dentistry. "My team and I are excited about the partnership with NeoStem," said Dr. Taichman. "The early evidence that very small embryonic- like stem cells can differentiate into mesenchymal cells and then regenerate bone tissue lays the foundation for the study of these cells as autologous therapeutic agents, with the potential to treat conditions such as wound healing, burns and fractures, orthopedic disorders and bone diseases such as osteoporosis."

"We are grateful to the NIH for this grant to fund research using our VSEL(TM) Technology to develop potential therapy for bone diseases," said Robin Smith, M.D., Chairman and CEO of NeoStem. "Our research team is looking forward to leveraging our adult stem cell expertise to advance the understanding and development of autologous adult stem cell therapies for osteoporosis and other regenerative diseases. We are excited to partner with Dr. Russell Taichman and his team in this important pursuit."

SOURCE NeoStem, Inc.