Innovation Kyoto 2021 Investment Limited Partnership (hereinafter referred to as "KYOTO-iCAP No. 2 Fund"), whose general partner is Kyoto University Innovation Capital Corporation (hereinafter referred to as "Kyoto iCAP") (Head Office: Sakyo-ku, Kyoto; Representative Director: Kimi Kusumi), has recently made a new investment in Arktus Therapeutics Inc. (Head office: Sakyo-ku, Kyoto; Representative Director: Tomohiro Oiwa), which is engaged in the practical application of regenerative medicine technology using iPS cell-derived cartilage.

    Arktus is a startup whose founding researchers are Associate Professor Makoto Ikeya of the Division of Clinical Application Research at the Center for iPS Cell Research and Application (CiRA), Kyoto University, and Professor Koichi Nakayama of the Research Center for Regenerative Medicine, Saga University School of Medicine. Associate Professor Ikeya and Professor Nakayama have so far conducted joint research and development on "a new treatment method for the creation of artificial joint-type implants using only cells.

　In this project, Associate Professor Ikeya is in charge of developing a technology to produce high-quality mesenchymal stem cells (MSCs) from iPS cells. Professor Nakayama is in charge of developing technology to differentiate MSCs (iMSCs) from iPS cells into chondrocytes with physical properties equivalent to those of natural cartilage, and to fabricate large-area chondrocyte implants with a 3D printer that can be freely designed and shaped.

　Arktus will first commercialize a new treatment technology for knee osteoarthritis (OA), a condition in which the cartilage in the knee wears away due to various causes, and as the condition progresses, it becomes difficult to walk due to severe pain. In Japan alone, there are an estimated 8 million patients with OA, and Arktus' technology is expected to provide a fundamental cure for OA by creating and implanting a chondrocyte implant tailored to each patient's specific area of damage.

　Kyoto iCAP has been working with Associate Professor Ikeya and Professor Nakayama for several years toward the establishment of the startup, and has provided various support, including the introduction of Mr. Oiwa, who became the representative director of Arktus, as a potential manager. In addition, Kyoto University provided support for animal experiments using large animals for two years through its incubation program, an intramural grant system, and the startup was realized as a result of these efforts.

　Arktus' chondrocyte implant fabrication technology can be applied not only to OA, but also to meniscus and ligament injuries, as well as to cartilage outside of the knee. Kyoto iCAP highly evaluates the novelty and growth potential of the product line that Arktus aims to commercialize, and has invested in the company in the establishment round together with QB Capital LLC, QB No. 2 Investment Limited Partnership jointly managed by NCB Venture Capital Inc. and one other company. In conjunction with this investment, Kyoto iCAP will dispatch one of its outside directors to Arktus to begin providing hands-on management support.

Arktus Therapeutics co., ltd.　summary
Establishment July 2023
Business Development of artificial joints using iPS cell-derived cartilage
Head office located at 36-1, Yoshida Honmachi, Sakyo-ku, Kyoto, Japan
Tomohiro Oiwa, Representative Director

Kyoto University Innovation Capital Co., Ltd.(Kyoto-iCAP)About
　As a wholly-owned subsidiary of Kyoto University, Kyoto-iCAP provides investment and other business support to companies that utilize research results generated by Kyoto University and other national universities. We currently operate the Innovation Kyoto 2016 Investment Limited Partnership ("Kyoto-iCAP 1 Fund") (established in January 2016) with a total value of 16 billion yen and the Kyoto-iCAP 2 Fund (established in January 2021) with a total value of 18.1 billion yen. The Kyoto-iCAP No. 1 Fund has a maturity of up to 20 years, and the Kyoto-iCAP No. 2 Fund has a maturity of up to 17 years, making it possible to provide long-term support for the practical application of research results from Kyoto University, which has strengths in basic research. The Kyoto-iCAP 2 Fund has a maximum maturity of 17 years. In addition, Kyoto-iCAP No. 2 Fund will invest a portion of the funds in ventures originating from national universities other than Kyoto University.

Contact information for inquiries
Kyoto University Innovation Capital Co., Ltd.
36-1 Yoshida Honmachi, Sakyo-ku, Kyoto 606-8317, Japan
Osami Kono, Senior Officer, Business Development Department
TEL: 075-753-7588 FAX: 075-753-7592
E-mail: info@kyoto-unicap.co.jp