Q Therapeutics, Inc, a biotechnology company pursuing cell-based therapies for the central nervous system (CNS), recently announced that it has closed on a first tranche of its $15 million Series B financing. The Venture Capital round was led by vSpring Capital.

Other investors include Epic Ventures (Formerly Wasatch Venture Fund), Invitrogen Corporation, Toucan Capital, University of Utah Research Foundation, Salt Lake Life Science Angels and Q management.

Q is conducting preclinical studies to support the filing of an Investigational New Drug Application with the FDA using Q-Cells™ (neural glial cells) for the treatment of transverse myelitis, a rapidly paralyzing subset of multiple sclerosis (MS). Clinical trials are anticipated at Johns Hopkins in 2009.

“Q is very pleased to add Invitrogen as an investor, along with the continued support of vSpring, Wasatch and Toucan,” said Deborah Eppstein, Ph.D., President & CEO of Q Therapeutics. “This investment will help accelerate our efforts to bring important new treatments to the clinic for these extremely debilitating neurodegenerative diseases. As a leader in providing many of the necessary tools for stem cell research and production, Invitrogen’s participation will further enhance our development going forward.”

“We are very pleased with the progress made by Q since our initial investment”, stated Dinesh Patel, Ph.D., Managing Director of vSpring Capital. “Q has the right combination of excellent science and a strong management team to advance its cell-based therapies and bring these important products to clinical development.”

Q Therapeutics, Inc., is an emerging biopharmaceutical company, venture-backed and privately held, located in Salt Lake City, Utah. The Company has exclusive rights to 16 patents arising out of work done by Mahendra Rao, M.D., Ph.D., at the University of Utah and NIH, and is developing products to treat debilitating diseases of the central nervous system. The Company’s first product, Q-Cells™, is a cell-based therapeutic intended to replace the insulating myelin on damaged neurons as well as provide trophic support, thereby restoring or preserving normal function of neurons. Q-Cells are applicable to a wide range of demyelinating diseases, including multiple sclerosis (MS), transverse myelitis, cerebral palsy, spinal cord injury and white matter stroke; as well as other neurodegenerative diseases such as ALS (Lou Gehrig’s Disease) and Parkinson’s Disease. Clinical trials are anticipated to commence in 2009 in Transverse Myelitis, a rapidly paralyzing, inflammatory demyelinating spinal cord injury related to MS. Q’s pipeline includes other cell products for treating diseases including Alzheimer’s Disease and peripheral neuropathies.

For more information, please visit www.qthera.com