M GROUP EQUITY RESEARCH INDUSTRY REPORT July 8, 2013 Regenerative Cell Therapy: Autologous versus allogeneic is the wrong question? It's pre-clinical, manufacturing, and clinical data that drive safety. Companies mentioned include: Athersys, Inc. (ATH2O- $1.68 -Buy Baxter (BAX)- $69.88 -NR Capricor (private) Cardio3 Blosciences (phm.) Cytomedtr (CM27)- $0.42-NR Cytori Therapeutics (CYTX) - $2.43 -Buy Dendreon (DNDTO - $4.48 - Sell IntellkellBioScience (S PVC)-$0.05 - Mt Lorna (LONN.VX)- CHF72.30 -1411t Mesoblast Ltd. (MBLTY)- $25.14 - Buy NeoStem, Inc. (MS) — $0.57—M Osiris (OSIR) - $10.40 -RR Pfizer (PPE) - $27.97 -NR Pluristan (PS77) — $2.98 — Hold Ton Pharmaceuticals (TEVA) — $38.94 —Buy °Closing prams (7/05/10)3) Mon clinical Mob are taking place with allogenek cells, which we Mier* is due to a good safely profile, 'off :the shelf' convenience, and lower COGS Soiree. Cirmemmals.rov sod licam dose nessata Jason Kolbert :wee hup .thegreatharn houtinn com "What the eyes see and the ears hear, the mind believes" - Harry Houdini. In the wake of Pluristem's clinical hold, some investors have been asking if there are implications for other allogeneic companies. NeoStem closed its presentation at the Alliance for Regenerative Medicine (ARM) conference in April 2013, with a slide that autologous cells are safe. Well, that depends? Were the autologous cells manipulated, enriched, exposed to media, or expanded? The NeoStem product is "manipulated." In this report, we review the safety data for allogeneic cells and claims from autologous companies like NeoStem that allogeneic cells are less safe or not safe. In fact. we believe this is misdirection on the part of autologous companies. it Manipulation? Generally speaking, both autologous and allogeneic cells are manipulated. The definition of manipulation varies from minimally manipulated to manipulated, but it is a misnomer to claim that no manipulation occurs. r The clinical h