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: Koji Murota) as general partner, has decided to invest in Qualipse Co. (Head office: Chuo-ku, Tokyo; President: Naoko Iino), a venture company that utilizes research results from Kyoto University.

Outline of this investment
Qualipse is a regenerative medicine venture established based on the research results of Professor Yoshiki Sawa of the Department of Cardiovascular Surgery, Osaka University Graduate School of Medicine, and is working on the practical application of cardiac muscle sheets produced from induced pluripotent stem cells (iPS cells). Currently, the only effective treatments for severe heart failure are heart transplantation or the use of an artificial heart, but transplanting iPS cell-derived cardiac muscle sheets into a patient's heart is expected to improve symptoms.

Qualipse is conducting research and development based on the Joint Research Chair in Advanced Regenerative Medicine ("Joint Research Chair") established at Osaka University, and in October last year signed a joint research and development agreement with Daiichi Sankyo Company, Limited. Currently, we are studying ways to improve and finalize the production method of iPS cell-derived cardiomyocyte sheets required for the clinical trial led by Osaka University. In addition, we have started activities to establish a system for supplying products for clinical trials and to materialize a concept for a cell manufacturing facility.

Kyoto University and Qualipse plan to conclude a license agreement for basic patents related to iPS cells. In addition, Qualipse will supply high-quality iPS cells to be used as raw materials for cardiomyocyte sheets from the "iPS cell stock" established by the Center for iPS Cell Research and Application (CiRA) of Kyoto University. CiRA is also conducting joint research with Osaka University on iPS cell-derived cardiac muscle sheets.

Kyoto iCAP, together with Daiichi Sankyo Company, Limited, Terumo Corporation, and others, decided to underwrite a third-party allotment of new shares by Qualipse, highly evaluating the social significance of the challenge of developing a new treatment technology for severe heart failure, an intractable disease, and the contribution to promoting the practical use of iPS cells, a Kyoto University invention. Ltd. and Terumo Corporation. The KYOTO-iCAP No. 1 Fund will invest 210 million yen out of the total capital increase of approximately 1 billion yen. We will continue to support Qualipse in cooperation with other shareholders for the earliest possible launch of iPS cell-derived cardiomyocyte sheets and the earliest possible listing of Qualipse.

Outline of CUORiPS Inc.

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