Osaka Opens New Medical Innovation Hub Focused on Regenerative Medicine

An international hub for healthcare innovation, Nakanoshima Qross, has opened in Kita Ward, Osaka City. The hub brings together medical institutions and companies under one roof to advance the industrialization of regenerative medicine. It offers a one-stop solution for research and development, service delivery, and human resource training to meet market needs.

The opening precedes the 2025 Osaka-Kansai World Expo, where medicine and health will be a key exhibition sector.

The facility officially began operations on June 29 on the site previously used by Osaka University's Nakanoshima campus for medical studies. On July 9, Deputy Minister of Health, Labour and Welfare Masakazu Hamachi visited the hub, accompanied by Yoshiki Sawa, the president of the Organization for Advanced Healthcare Innovation and a specially appointed professor at Osaka University.

During his visit, Hamachi was briefed on advancements in regenerative medicine technologies and observed cardiac muscle sheets developed by Sawa. These innovative sheets are made from cardiomyocytes derived from induced pluripotent stem cells (iPS cells). Hamachi also toured the clinics and research facilities within the hub.

Advancing Regenerative Medicine

In June, the Japanese government approved the Basic Policy on Economic and Fiscal Management and Reform, known as the "Big-Boned Policy." This policy outlines the promotion of research and development in drug discovery and regenerative medicine using iPS cells, as well as the establishment of industrial bases in these fields. The purpose of Hamachi's visit to Nakanoshima Qross was to inspect the hub's facilities and infrastructure.

Regenerative medicine using iPS cells aims to restore tissues damaged by diseases or injuries. This approach holds promise for treating rare diseases and advancing drug development.

A major challenge, however, is the high production cost of iPS cells. To address this, the Center for iPS Cell Research and Application at Kyoto University, led by Director Shinya Yamanaka, has launched the "my iPS Project." This initiative aims to mass-produce therapeutic iPS cells from patients using automated culture systems. The goal is to make these cells available to medical institutions and companies at an affordable price while ensuring safety.

*The floors of Nakanoshima Qross. (Not official translation)*

Startups Join In

The Future Medicine R&D Center at Nakanoshima Qross is a consortium of medical and pharmaceutical companies, including startups. This autumn, the Pharmaceuticals and Medical Devices Agency (PMDA) Kansai Branch will relocate from near Osaka Station to the hub, where it will oversee consultations and investigations related to regenerative medicine products.

Additionally, the Future Medicine MED Center will serve as a venue for the application of advanced medical treatments. It houses specialized clinics focusing on cardiovascular diseases, orthopedics, and dentistry.

"This is more than just a collection of medical and research facilities," Hamachi stated in an interview. "It is a center poised to drive innovation in healthcare and drug discovery. I am closely watching its potential to spark technological breakthroughs."

Professor Sawa added, "At Nakanoshima Qross, we aim to develop cutting-edge medical treatments that will set new global standards."

*Press preview of Nakanoshima Qross on June 12. The Mitsui Link-Lab Nakanoshima features a shared lab equipped with various research tools accessible to different companies. (©Sankei by Miyako Nagumo)*

Kobe Leads the Way in Advanced Medicine

Another major life sciences hub in the Kansai region is the KOBE Biomedical Innovation Cluster (KBIC). Established on the artificial Port Island in Kobe Port in 1998, KBIC has become one of Japan's largest industrial centers for life sciences. It hosts over 360 companies and organizations, with approximately 12,700 researchers and developers specializing in advanced medical technologies. With the Osaka Expo approaching, Kobe envisions KBIC as a key gateway for information and talent in the field.

KBIC is home to the RIKEN Center for Biosystems Dynamics Research and numerous companies focused on regenerative medicine and drug discovery. It also includes hospitals that provide cutting-edge medical treatments.

A Gateway for Talent

According to Kobe City, one of its strengths is its accumulated expertise in life sciences. A notable achievement includes the world's first transplant of a retinal sheet derived from iPS cells. Additionally, a city official emphasized the advantage of having numerous hospitals, which provide a variety of "real-world testing environments" for developing new treatments safely and efficiently.

As the city’s expert panel formulates a future vision for KBIC, a primary focus is enhancing Kobe Airport's strategic role. With the Osaka Expo approaching, stakeholders have agreed to increase the airport's capacity by 1.5 times by spring 2025.

This expansion is part of a broader plan to establish KBIC as a key gateway for information and talent in life sciences, anticipating the launch of international flights at Kobe Airport in about 12 years. A city official expressed enthusiasm about the expansion, stating, "It will strengthen connections with other domestic cities and contribute to revitalizing our medical industry."

Fundraising Challenges

Japan has industrial clusters for life sciences in several regions, including Osaka, Kobe, Tokyo, and Kanagawa. Systems that foster the collaboration and mutual growth of various research institutions and companies are often referred to as "ecosystems." However, Japan's ecosystems have yet to achieve the level of competitiveness required to excel in the global market.

Yoshiki Sawa, president of the Organization for Advanced Healthcare Innovation, noted that Japan's advanced medical sector has strong systems for research, development, and product commercialization. However, it lags in fundraising and talent development — critical factors for global competition and industrialization.

Globally, regions like Boston, San Francisco (Silicon Valley), and London are renowned for their comprehensive clusters. These areas feature research institutions, major pharmaceutical companies, and university spin-offs. They are supported by well-established ecosystems with venture incubation facilities backed by foundations and investment firms. Nakanoshima Qross aims to leverage insights from these advanced ecosystems to enhance its operations.

Kanetaka Maki, an associate professor of innovation at Waseda Business School and a member of the Cabinet Secretariat's drug discovery council, identifies a key issue in Japan's medical sector: "Despite Japan's excellent companies and research achievements, there is a lack of effective collaboration among the players."

He also emphasizes the need for government support to strengthen these ecosystems, stating, "There is considerable international interest in Japan's regenerative medicine. Facilities like Nakanoshima Qross are expected to serve as pioneering ecosystems where stakeholders can interact and collaborate."

(Read the article in Japanese.)

Authors: Hirotoyo Kozai, Takashi Yamamoto, and Shinichi Kiyomiya, The Sankei Shimbun