Apr 8, 2015
CBMG Responds to False Statements and Allegations Made by Short Seller
Cellular Biomedicine Group Responds to False Statements and Allegations Made by Short Seller
SHANGHAI, China and PALO ALTO, Calif., April 8, 2015 /GlobeNewswire/ -- Cellular Biomedicine Group Inc. (NASDAQ: CBMG) (“CBMG” or the “Company”), a biomedicine firm engaged in the development of effective treatments for degenerative and cancerous diseases, today responded to false statements and allegations made by Pump Stopper on April 7, 2015. The Company fully respects the right of any third party to express its opinion but reminds investors that facts are facts.
The posting compiles false and misleading selective information in a manner to maliciously advance, we believe, a “short agenda’ for personal gain to the detriment of the shareholders of the Company.
Here are the facts:
The Company welcomes investors and potential strategic partners to attend the Open House at CBMG’s facilities on April 17, 2015 for a half day of management presentations, question and answer sessions, a facility tour and senior executive briefings (please register to attend the event with firstname.lastname@example.org). The Company is fully committed to the highest standard of corporate governance as well as transparency and fair and timely disclosure in full compliance with applicable law and SEC regulations.
Like other young, early stage companies CBMG engaged with a smaller auditing firm prior to listing on NASDAQ. Shortly after the Company became a publicly reporting company, it underwent a diligent selection process and engaged BDO, a top five accounting firm before the up-listing to NASDAQ.
Adverse Effects of Clinical Trials:
CBMG employed strict protocols in patient selection for its CAR-T Phase I clinical trials (targeting CD19, CD20, CD30, and EGFR1). The results of CD20 were published and those of CD19 were accepted in peer-reviewed scientific journals . According to comparable trials conducted by the Company’s global peers, the adverse effects detected in these trial participants are on par with similar studies and, the efficacy (overall response rate), if reviewed carefully, is promising. Furthermore, it is unrealistic to expect a 100% survival rate during cancer drug clinical trials, especially considering that the admitted participants in the trials are advanced, relapsed, and refractory candidates.
Code of Ethics and Conduct:
CBMG’s management abides by a strict code of ethics and conduct as set forth in the Company’s charter. As such, CBMG neither has nor had any investment or business relationship with the named individual who was indicted as indicated by the report.
Investor Relations is a critical and important fiduciary duty of management and is differentiated from “stock promoting”. The Company employs the highest standards of full disclosure as evidenced by regular and frequent dissemination of news through press releases, conferences and media. In addition, the Company’s research analyst possesses years of covering the stem cell and immune cell therapy sectors. CBMG retained this analyst as a strategic consultant for two months between October and November 2014 for drug pipeline, operational review, and technology recommendations. His research coverage is completely independent of this engagement.
“The Company prides itself on corporate governance and public company management and has made meaningful strides over the last five quarters. We will continue to focus our efforts on building a world-class biotechnology company focused on providing solutions to large unmet medical needs and improving patient quality of life while delivering shareholder value“ commented Dr. William (Wei) Cao, Chief Executive Officer of the Company.
The company intends to publish a more detailed response to the false and misleading allegations made by Pump Stopper on the Company’s website.
About Cellular Biomedicine Group
Cellular Biomedicine Group, Inc. develops proprietary cell therapies for the treatment of certain degenerative diseases and cancers. Our developmental stem cell, progenitor cell, and immune cell projects are the result of research and development by scientists and doctors from China and the United States. Our flagship GMP facility in China, consisting of eight independent cell production lines, is designed, certified and managed according to U.S. standards. To learn more about CBMG, please visit: www.cellbiomedgroup.com
Statements in this press release relating to plans, strategies, trends, specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "expects," "plans," "intends," "estimates," "potential," or "continue," or similar terms or the negative of these terms. Although CBMG believes the expectations reflected in the forward-looking statements are reasonable, they cannot guarantee that future results, levels of activity, performance or achievements will be obtained. CBMG does not have any obligation to update these forward-looking statements other than as required by law.
Director of Corporate Communications, CBMG
+1 650 566-5064