Investment Overview

Kyoto University Innovation Capital Co., Ltd. (hereafter referred to as "Kyoto iCAP"), based in Sakyo Ward, Kyoto and led by President Takashi Kusumi, has executed an investment in Regcell Inc. (headquartered in Kyoto Prefecture and managed by CEO Michael McCullar), a venture company focused on harnessing research outcomes from Kyoto University.

About Regcell Inc.

Founded on January 27, 2016, Regcell Inc. aims to develop innovative Treg cell therapies with a focus on autoimmune diseases, which affect approximately 10% of the global population. The company’s lead pipeline product, RegPD-101, falls under the category of antigen-specific Treg therapy (S/F-Epigen Treg) and represents a novel approach to treating autoimmune conditions without broadly suppressing the immune system.

Industry Overview in Japan

The biotechnology sector in Japan has been growing steadily, with various initiatives aimed at translating academic research into commercial applications. Companies like Regcell are at the forefront of this trend, benefiting from Japan's robust academic foundation and government support.

Japan’s healthcare system is highly advanced, emphasizing innovation within pharmaceuticals and biotechnology. The government has implemented reforms to encourage venture capital investments and facilitate the commercialization of scientific research.

Moreover, the Japanese population's aging demographic contributes to an increasing demand for effective treatments for chronic conditions, including autoimmune diseases. This factor, combined with advancements in gene therapy and personalized medicine, positions Japan as a conducive environment for biotech startups.

As Regcell continues to refine its Treg cell therapy, it stands to capitalize on the market’s demand for safer, more targeted treatment options that can improve patient quality of life.

Rationale Behind the Deal

The investment of 150 million yen in Regcell, finalized during the C2 round, reflects Kyoto iCAP's confidence in the potential of S/F-Epigen Treg therapy. This innovative treatment not only has the potential to minimize side effects but also to provide sustained efficacy with fewer doses, addressing current unmet medical needs in the field.

The collaboration draws heavily on the research achievements of Kyoto University and other national universities, highlighting the strong synergies between academic research and commercial applications.

Information About Kyoto iCAP

Kyoto iCAP is a wholly-owned subsidiary of Kyoto University, focusing on investments and support for companies leveraging research outcomes from national universities. With a total fund size of 16 billion yen through the KYOTO-iCAP1 Fund (established in January 2016) and 18.1 billion yen through the KYOTO-iCAP2 Fund (established in January 2021), Kyoto iCAP fosters long-term support for practical applications of research.

The fund structures allow for a maximum term of 20 years for the first fund and 17 years for the second fund, ensuring robust backing for innovations emerging from Kyoto University and beyond, including ventures from other national universities.

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The investment in Regcell presents a promising opportunity in the burgeoning field of Treg cell therapy. Given the company's unique approach to treating autoimmune diseases, there is a substantial market potential, especially as more patients seek alternatives to traditional therapies that often come with significant side effects.

Moreover, by leveraging established academic research, Regcell is well-positioned to navigate regulatory frameworks and accelerate its product development process. This factor, combined with strong support from investors like Kyoto iCAP, enhances the likelihood of successful market entry.

However, it is vital to monitor the competitive landscape closely. The biotech industry is dynamic, and continued innovation is crucial to maintain a competitive edge. Regcell’s ability to adapt and evolve its therapies will be essential in addressing future challenges.

Overall, this investment appears to be a sound strategic move for Kyoto iCAP and reflects a forward-thinking approach to capitalizing on innovative medical advancements through strong university partnerships.

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京都大学イノベーションキャピタル株式会社

invested in

レグセル株式会社

in 2021

in a Other deal

Disclosed details

Transaction Size: $1M

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