NeoStem (AMEX: NBS) finalizes Amorcyte Acquisition
Amorcyte is a clinical stage Cardiovascular Disease Cell Therapy Company
AMEX: NBS closed their merger transaction of Amorcyte, following approval by the shareholders, and intends to initiate a P2 clinical trial for Amorcyte’s lead product candidate, AMR-001 by Q1/12 for the treatment of acute myocardial infarction (AMI).
- AMR-001 is an autologous, bone marrow-derived, pharmaceutical grade cell-based product that uses a cell population enriched for CD34+CXCR4+ cells;
- Studies have shown that these cells act as a natural repair mechanism, releasing from bone marrow and traveling to the damaged region of the heart following an AMI;
- Treatment with AMR-001 involves infusion of an active population of these cells directly into a patient’s heart via an intra-coronary catheter 6 to 11 days after an AMI (i.e., after the “hot” or inflammatory phase) and as such complements the body’s natural rescue mechanism for those cells that face hypoxic stress (oxygen deprivation) as a result of an increased workload.
The Bottom Line: Pursuant to the terms of the Merger Agreement, NBS issued 5,843,483 shares as the base stock consideration; will issue up to 4,092,768 shares of common stock upon the achievement of certain specified business milestones; issued warrants to purchase 1,881,008 shares of common stock exercisable over a 7 year period at a price of $1.466 per share upon the successful commercialization of AMR-001 and will pay certain earn out payments on sales. The shares of common stock issued and underlying the warrants are subject to certain transfer restrictions. NBS was encouraged by the P1 results and believes that AMR-001 will bridge the gap between cell therapy’s roots in bone marrow transplantation and cell therapies of the future.
Acute Myocardial Infarction (AMI): Approximately 800,000 Americans suffer an AMI each year, approximately 20%, or 160,000 patients, remain at risk for progressive deterioration in heart muscle function and, as a consequence, increased risk for future major adverse cardiac events.
