Innovation Kyoto 2016 Investment Limited Partnership ("KYOTO-icap No.1 Fund"), with Kyoto University Innovation Capital Corporation ("Kyoto iCAP") (Head Office: Sakyo-ku, Kyoto; President: Kusumi Kimi) as unlimited liability partner, has decided to make an additional investment in Qualipse Inc. (headquartered in Chuo-ku, Tokyo; Takayuki Kusanagi, President & CEO), a venture company that utilizes research results from Kyoto University.

Outline of ○Investment
Qualipse is a regenerative medicine venture originating from the Department of Cardiovascular Surgery, Osaka University School of Medicine, and is working on the practical application of cardiac muscle sheets produced from induced pluripotent stem cells (iPS cells). Currently, there are only limited effective treatments for severe heart failure, such as artificial hearts, and transplanting iPS cell-derived cardiac muscle sheets into patients' hearts is expected to be effective in improving symptoms.

While the heart is a highly competitive field in regenerative medicine, Prof. Sawa and his research group are ahead of competing projects for practical use, including the world's first transplantation of iPS cell-derived cardiac muscle sheets (investigator-initiated clinical trial) in January of this year. Meanwhile, Qualipse completed construction of a commercial cell culture and processing facility this summer, and has already established a manufacturing and supply system for its products. Through joint research and development with Osaka University, the company aims to obtain regulatory approval in 2023.

Qualipse plans to conclude a license agreement with Kyoto University for basic patents related to iPS cells. In addition, Qualipse will receive a supply of high-quality iPS cells as raw materials from the "iPS cell stock" established by the Center for iPS Cell Research and Application (CiRA) of Kyoto University.

Kyoto iCAP highly evaluated the steady progress of research and development for the practical use of iPS cell-derived cardiac muscle sheets since the initial investment (July 2018) and the contribution to the promotion of the practical use of Kyoto University's invention, iPS cells, and decided to underwrite 300 million yen of the total of approximately 2 billion yen in private placement of new shares to be conducted by Quaripse. The company has decided to underwrite 300 million yen of the third-party allocation of new shares totaling approximately 2 billion yen to be carried out by Qualipse. Ltd., Asahi Intec Corporation, Stem Cell Laboratories, Inc. and Daidan Corporation will also participate in this fundraising.

Outline of Qualipse Corporation

Establishment	March 2017
Business	Development of iPS cell derived myocardium sheet
Head Office Location	Chuo-ku, Tokyo
President & CEO	Takayuki Kusanagi