News focus on NeoStem, Cel-Sci and Vion Pharmaceuticals

Written by M.E.Garza

Monday, 25 January 2010 08:55

This morning's news release by NeoStem (Amex:NBS) is a peek into the metamorphosis we learned would be taking place at the company last week.

During our exclusive interview with Robin L. Smith M.D., Chairman of the Board and Chief Executive Officer of NeoStem Inc. (AMEX:NBS) last week, she shared a few promising glimpses about the company's future, but some of the revelations we found after digging through some of the company's recent filings really start to put things into focus more clearly after today's announcement.

This morning it was announced that NeoStem's newly acquired Suzhou Erye Pharmaceutical subsidiary received approval from the State Food and Drug Administration in China to manufacture and sell omeprazole 20mg capsules. Omeprazole, a proton pump inhibitor, is the generic form of one of the most widely-prescribed drugs in the world for the treatment of peptic ulcer disease and gastroesophageal reflux disease.

Just like that, the company gets a piece of the lucrative drug product that has annual sales of around $362.0 million in the USA alone (based on IRI sales data as of July 13, 2008). In China, it is estimated that a 5% incidence of GERD exists among their general population of 1.3 bln people. Omeprazole is on China's National Medical Reimbursement Insurance List as being eligible for reimbursement by the government's healthcare programs. So this news represents, by modest accounts a $20+ million influx of revenues for a company that generated less than $80K in revenue last year. This is on top of the already announced tens of millions of dollars in revenue that they are entitled to as part of the purchase of Suzhou Erye.

Based on our research through public filings, it is safe to assume that the company has several other drugs in the State Food and Drug Administration in China approval pipeline already. Drugs usually take 12-18 months to get approval in that country, but don't be surprised to see a steady stream of these types of news items in the coming weeks and months ahead. NeoStem appears ready to leverage the distribution and sales capabilities of their new pharma subsidiary in order to produce and sell more drugs in that country. Already Suzhou Erye is one of the largest distributors of antibiotics in that country, but they are very actively looking to expand their drug product lines.

Also, let's not forget that the NeoStem is actively exploring more research opportunities and partnerships in the favorable regulatory environment which exists for stem cell research in China.

Full speed ahead.

Crystal Research Associates, LLC announced today that it has issued an Executive Informational Overview on CEL-SCI Corp. (AMEX:CVM). The full 64-page report can be found at www.crystalra.com.

CEL-SCI's L.E.A.P.S. technology was just featured in a Fox Business televised special about H1N1 which was produced by news veteran Dan Rather. If you haven't seen it, it's worth checking out as it provides the first public view of CVM's new state of the art lab.

CEL-SCI plans to begin the Phase III trial of Multikine at multiple centers in North America, the European Union (EU), South America, and Asia in the summer of 2010. The Company believes that a positive Phase III outcome could enable Multikine to be routinely included as part of the standard of care for all advanced primary head and neck cancer patients.

Vion Pharmaceuticals (OTC:VIONQ.OB) has issued a management statement related to the continuing trading volume in the Company's common stock.

Management informed investors that it had noticed continuing high trading volume in the Company's common stock after the Company's filing for bankruptcy and of its belief that there will be no value for the common stockholders in the Company's bankruptcy liquidation process, even under the most optimistic of scenarios. Stockholders of a company in Chapter 11 generally receive value only if all claims of the company's creditors are fully satisfied. In this case, Company management believes all such claims will not be fully satisfied, leading to its conclusion that Vion common stock will have no value.

On December 17, 2009, Vion filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court in the District of Delaware.

In other words.. Stop trading!

Disclosure: Long: CVM, NBS

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