NeoStem Signs Adult Stem Cell Agreement in China

TradingMarkets.com, June 15, 2009

The U.S. company Neostem, which operates a number of adult stem cell collection centers, has signed an exclusive 10-year-long contract with Enhance Biomedical Holdings Limited (EBHL), the China-based subsidiary of Enhance Holding Corporation. The new agreement allows both companies to collaborate in the development of a network of adult stem cell collection and treatment centers in Taiwan and throughout a number of provinces in China.

According to the terms of the agreement, NeoStem will train EBHL staff in the proper implementation of the proprietary adult stem cell technology developed by NeoStem, for which EBHL has been granted the exclusive rights to utilize throughout Asia. In return, NeoStem will receive from EBHL a six-figure technical assistance fee, in addition to royalties on gross revenues and other associated fees over the 10-year period. The 10-year contract is renewable upon its completion.

As stated on their website, "NeoStem is the first company to provide adult stem cell collection and banking services to the general adult population. NeoStem's medically proven process is a minimally invasive, painless and safe way to collect your own adult stem cells."

Since the U.S. FDA (Food and Drug Administration) has outlawed the use of autologous adult stem cell therapies in the U.S., an increasing number of U.S. adult stem cell companies are forced to take their business overseas. Only in the U.S. are each person's own adult stem cells considered to be a "drug", according to the U.S. FDA, and as such, each person's own adult stem cells are therefore subject to the same outdated and lethargic laws that regulate the pharmaceutical giants and other industrial manufacturers of medication. Consequently, people can obtain adult stem cell therapies just about anywhere at all in the world, except in the United States, which is especially ironic since most of the adult stem cell therapies that exist throughout the world were pioneered either in the United States or by U.S. researchers who have been forced to conduct their research outside of the United States. But now, U.S. citizens will be pleased to know that soon they will be able to add an entire new network of adult stem cell treatment centers throughout China to the growing list of foreign countries where adult stem cell therapies may be legally obtained.