NeoStem, an international biopharmaceutical company with product and service revenues, global research and development capabilities and operations in three distinct business units – U.S. adult stem cells, China adult stem cells, and China pharmaceuticals, has announced that its Suzhou Erye Pharmaceutical subsidiary has received approval from the State Food and Drug Administration (SFDA) in China for its sixth major production line which is responsible for the production of over 20 finished pharmaceutical products, 80 percent of which are on the National Insurance Drug List. The combined production lines now certified by the SFDA are six of eight planned and are responsible for approximately 99 percent of Erye’s 2010 revenues. In 2010, Erye reported full year sales of close to $70 million, generating approximately $10 million in earnings.

Erye reported sales of over $18 million for Q1-2011.  This represents an increase of 15 percent versus the same period a year ago and 43 percent versus the same period two years ago. More importantly, the capacity constraints associated with Erye operating out of its former facility have been removed.

NeoStem's chairman and CEO, Dr Robin Smith, commented, "The Chinese pharmaceutical market, which is the third largest in the world, has estimated sales of over $50 billion for 2011, and is expected to double in the next five years. This significant forecasted growth was an important consideration in our agreeing to reinvest our dividends into the company to support the relocation so that Suzhou Erye can be positioned to capture this growth and maximize the value of NeoStem’s 51 percent  interest in Suzhou Erye." Based on the capacity of the new facility, and anticipated volume growth, Erye’s top line revenues should see solid growth in the years ahead and NeoStem’s management will consider our multiple options to realizing the benefits of this increasingly valuable asset.”