TOKYO -- Japan's science ministry plans to develop induced pluripotent stem (iPS) cells that are easier to use in clinical environments, with the hope of treating conditions such as strokes and chronic kidney failure, as well as lowering production costs.

The ministry is positioning the technology as "next-generation" iPS cells, and has earmarked 5.6 billion yen ($35.6 million) for the initiative in its fiscal 2027 budget request.

It aims to complete the cell production method in fiscal 2027. A production line will be set up at the CiRA Foundation at Kyoto University, with distribution for research and other purposes scheduled to begin in fiscal 2028. The plan calls for a mass-production system to be in place in fiscal 2030.

iPS cells were discovered in 2006 by Kyoto University professor Shinya Yamanaka. They are created by introducing specific genes into skin and other cells and then culturing them. The resulting cells can develop into cells of any tissue or organ.

However, current production methods face challenges, including inconsistent quality and the low rate at which iPS cells develop into the desired cell types. This has made it effectively impossible to apply them to diseases involving complex organs, such as the brain and kidneys.

To overcome this, the CiRA Foundation has been working to improve iPS cell production methods. Research has shown that altering culture conditions to return cells to a state closer to the early stages of a fertilized egg can improve their ability to develop into the desired cell type.

This technique could make it possible to reproduce the complex structures of organs. For example, it has become easier to create cells for the cerebral cortex, the thin layer of the brain responsible for high-level thinking.

If miniature organs -- or organoids -- resembling the cerebral cortex are created from iPS cells and transplanted into patients, they could potentially improve reduced motor function caused by strokes. About 1.3 million people are receiving treatment for strokes in Japan.

Next-generation iPS cells could also potentially be used to create kidney and lung cells. They are expected to have applications in conditions such as chronic kidney failure and emphysema, where damage to the alveoli in the lungs makes breathing difficult.

The science ministry's initiative also aims to cut cell manufacturing costs. Delivering cells to patients currently costs between 50 million yen and several hundred million yen per case. For such treatments to become widely available, costs will need to come down. The practical application of next-generation iPS cells is considered critical to achieving that goal.

Now, 20 years after the discovery of iPS cells, medical applications of first-generation iPS cells are beginning in earnest.

In March, two products became the world's first regenerative medicines using iPS cells to receive conditional, time-limited regulatory approval: a treatment for Parkinson's disease developed by Sumitomo Pharma and cardiac muscle cell sheets for heart failure developed by Cuorips, a startup out of the University of Osaka.

Panasonic Holdings has developed equipment capable of fully automated cell cultivation. Because the cultivation process for next-generation iPS cells significantly overlaps with that for first-generation cells, it may be possible to handle the new cells by modifying existing equipment.

The growth strategy approved by the Japanese government's cabinet in July named regenerative medicines using iPS cells as one of Japan's strengths. But the U.S. and China are also stepping up research, making it uncertain whether the country will be able to maintain its first-mover advantage.

"To compete with the U.S. and China, it's important that we can maintain an all-Japan framework," said Yamanaka, the professor who discovered iPS cells. The speed with which next-generation iPS cells enter widespread use will be key to Japan's competitiveness.