QHP acquires Applied StemCell to strengthen its cell and gene therapy services for pharma clients

QHP Capital is expanding its portfolio of contract service providers by acquiring Applied StemCell (ASC), a specialized company in cell and gene therapy. ASC, based in California, is renowned for its genome editing platform called Targatt and its capabilities in good manufacturing practice (GMP) induced pluripotent stem cells. Leveraging these platforms, ASC offers a comprehensive range of services encompassing cell and gene therapy research, development, and manufacturing, including GMP-grade production of cells and plasmid DNA.

The demand for services related to cell and gene therapy has experienced substantial growth in recent years, resulting in capacity constraints. To address this, ASC embarked on expanding its GMP facility last year, and this expansion initiative will now receive support from QHP Capital, a private equity firm.

“Accelerating preclinical research and enabling manufacturing economies of scale are some of the biggest challenges facing the future of the regenerative medicine market. We look forward to working with ASC as they expand their commercial organization and broaden their market presence.”

– QHP partners Matt Jenkins and Jeff Edwards 

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QHP Capital, previously known as NovaQuest Private Equity, has carved out a niche in the pharmaceutical services sector in recent years. Since 2018, the firm has invested over $1 billion in ten companies, leading to the formation of a diverse portfolio that includes notable names such as CoreRx (a contract development and manufacturing organization), Catalyst Clinical Research (a contract research organization), and Clinical Ink (an eSource technology provider).

“Applied StemCell is dedicated to supporting the biopharmaceutical and research sectors in the pursuit of delivering transformative regenerative medicine treatments and cell therapy products. 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 cell gene therapy market by creating iPSCs and cell products that present the highest efficacy, greatest safety, and the most accelerated and scalable manufacturing.”

– Dr. Ruby Chen-Tsai, CEO of Applied StemCell

Jenkins and Edwards emphasized that ASC aligns perfectly with QHP’s investment focus, which revolves around providing strategic capital and support to established firms capable of scaling up to meet the industry’s evolving demands. They cited the example of CoreRx, which QHP acquired in 2021 and subsequently expanded by establishing a product development center, acquiring Nucleo Life Sciences, and making investments in formulation development and manufacturing equipment. This latest addition of Applied StemCell to QHP’s portfolio signifies the firm’s ongoing commitment to addressing the needs of the rapidly advancing regenerative medicine market.