QHP Capital Acquires Applied StemCell | Applied StemCell

Strategic Financial Sponsor to Support Continued Growth and Market Expansion

RALEIGH, NC and MILPITAS, CA, October 9, 2023 – QHP Capital (“QHP”), today announced its acquisition of Applied Stem Cell, Inc. (“ASC” or the “Company”), a leading cell and gene therapy CDMO focused on supporting the research community and biotechnology industry in developing and manufacturing cell and gene products.

With over 15 years of gene-editing and stem cell expertise, ASC offers comprehensive and customized cell and gene CRO/CDMO solutions. ASC’s unique platform of GMP-grade allogeneic induced pluripotent stem cells (iPSC) and its proprietary TARGATT^TM gene editing technology provides its clients with several advantages, including shorter manufacturing timelines, non-viral gene editing, and genomic stability and safety.   

“Applied StemCell is dedicated to supporting the biopharmaceutical and research sectors in the pursuit of delivering transformative regenerative medicine treatments”, said Dr. Ruby Chen-Tsai, CEO of Applied StemCell. “We are delighted to have the partnership with QHP Capital.  ASC’s technology and capabilities combined with QHP’s strategic network and deep industry knowledge will help us accelerate our vision to enable the future regenerative medicine market by creating iPSCs that present the highest efficacy, greatest safety, and the most accelerated and scalable manufacturing.”

The reprogramming of somatic cells into iPSCs offers tremendous potential for cell therapy, primary research, disease modeling, and drug development. Human iPSCs can be generated in culture, expanded, and then used to manufacture clinical-grade cells of almost any cell type.  Future applications of iPSCs are expected to evolve beyond their use as life science tools, ranging from personalized drugs to regenerative cell therapies.

“Accelerating pre-clinical research and enabling manufacturing economies of scale are some of the biggest challenges facing the future of the regenerative medicine market”, said Matt Jenkins and Jeff Edwards, Partners at QHP Capital.  “Applied StemCell fits with QHP’s investment focus of providing strategic capital and support to firms with established offerings that are positioned to scale to meet the needs of the industry.  We look forward to working with ASC as they scale their commercial organization and broaden their market presence.”  

About Applied StemCell:

Applied StemCell (ASC) is a CRO/CDMO based in the California Bay Area that specializes in cell and gene therapy. With its high-impact TARGATT™ Genome Editing and iPSC (GMP grade) platform, the company seeks to support research, pre-clinical development, and clinical manufacturing for its clients that are developing novel therapeutics.  ASC has successfully developed two cGMP iPSC lines that comply with FDA and EMA regulations for cell therapy product development. Applied StemCell has a Drug Manufacturing License from the California Department of Public Health, Food and Drug Branch (FDB).

About TARGATT:

TARGATT™ technology revolutionizes gene editing with fast and precise integration of large DNA fragments (up to 20 kb) into a specific safe harbor locus. This method ensures stable integration at an active site with high efficiency. By utilizing an "attP" landing pad and an "attB" donor plasmid, single-copy gene insertion is achieved. ASC’s proprietary TARGATT™ platform offers versatility for various applications, including the development of cell lines with large fragment knock-ins, bioproduction, and library construction. It overcomes challenges associated with random integration, such as position effect, gene silencing, and instability from multiple transgene copies.

About QHP Capital:

QHP Capital, L.P. invests in lower middle market healthcare companies primarily in North America, with a focus on services and technology companies where a strategic partner and operating resources can accelerate growth. Targeting companies in healthcare and pharmaceutical services industries, QHP invests in the form of buyouts, growth equity, and recapitalizations. For more information, please visit www.qhpcapital.com.

For further information about Applied Stem Cell, please contact:

Media Contact:

Maki Ogawa

Marketing Director, Applied StemCell, Inc.

408-773-8007

maki.ogawa@appliedstemcell.com

For media inquiries, please contact:

Jeremy Milner, BackBay Communications

(401) 862-9422, jeremy.milner@backbaycommunications.com