<PAGE>


                                                                   EXHIBIT 10.23

                          SPONSORED RESEARCH AGREEMENT

         RESEARCH AGREEMENT, effective 1 July, 1997, by and between The
University of North Carolina at Chapel Hill, having an address at 308 Bynum
Hall, Chapel Hill, North Carolina (the "University"), and Renaissance Cell
Technologies, Inc., a corporation existing under the laws of the State of
Delaware, and having an address P.O. Box 14287, Research Triangle Park, North
Carolina 27709 (the "Sponsor").

                                   WITNESSETH:

         WHEREAS, in pursuit of its educational purposes, which include research
and training, the University undertakes scholarly research and experimental
activities in a variety of academic disciplines; and

         WHEREAS, the Sponsor wishes to fund, and desires that the University
undertake, a research program in accordance with said research and training
mission, which research program is described more fully in Exhibit A, attached
hereto and made a part hereof (hereinafter, the "Research"); and

         WHEREAS, in furtherance of its scholarly research and instructional
interests, the University is willing to undertake the Research upon the terms
and conditions set forth below;

         NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the parties hereto agree as follows:

1.        Scope of Research

         During the term of this Agreement, the University shall use its best
         efforts to perform the Research, as described in Exhibit A, attached
         hereto and made a part hereof and will furnish the equipment and
         facilities necessary to carry out such Research. Notwithstanding the
         foregoing, the University makes no warranties or representations
         regarding its ability to achieve, nor shall it be bound hereby to
         accomplish, any particular research objective or results.

2.       Personnel

         The research shall be performed by, and under the supervision and
         direction of, Dr. Lola M. Reid, who shall be designated the Principal
         Investigator, together with such additional personnel as may be
         assigned by the University. The University covenants that all personnel
         and entities (including any other universities or other organizations)
         performing research hereunder have an, and shall be notified in writing
         of their, obligation to assign all of their rights, title and interest
         to and in any invention resulting from the Research to the University.
         If for any reason the Principal Investigator is unable to continue to
         serve as Principal Investigator, and a successor acceptable to both the
         University and the Sponsor is not available, this agreement may be
         terminated as provided in Article 10(b).


<PAGE>


3.       University Policies and Procedures

         All research conducted hereunder shall be performed in accordance with
         established University policies and procedures, including, but not
         limited to, policies and procedures applicable to research involving
         human subjects, laboratory animals, and hazardous agents and materials.

4.       Reimbursement of Costs.

         The Sponsor shall reimburse the University for all direct and indirect
         costs incurred by the University in connection with the Research in an
         amount not to exceed $450,000.00 per year for each of the first two (2)
         years hereunder ($50,000 of which in each of the first two years shall
         be for building upfit). After the first two years, the parties shall
         agree to each following year's budget prior to commencement of such
         year. Of such annual funding amount, excluding building upfit, not more
         than twenty-five percent (25%) shall be applied to the University's
         indirect costs. Provided, however, that the University may submit to
         the Sponsor at any time, and the Sponsor may at its discretion approve
         in writing, requests for additional funds. University shall keep
         accurate financial records relating to the Research and shall make such
         records reasonably available to Sponsor. However, the Sponsor is not
         liable for any cost in excess of the amount specified herein, unless
         this Agreement is modified to indicate such in writing by both parties.
         All checks shall be made payable to The University of North Carolina at
         Chapel Hill, shall include reference to the University Principal
         Investigator and his department, and shall be sent to: S. Kent Walker,
         440 W. Franklin St., CB#1350, UNC-CH, Chapel Hill, NC 27599-1350.
         Payments shall be made in accordance with the following schedule:
         one-quarter (1/4) of the annual budget on the date of signing of the
         agreement, and equal quarterly payments thereafter for the term of the
         agreement.

5.       Research Reports

         The University through the Principal Investigator shall prepare and
         maintain records, including bound laboratory notebooks maintained in
         accordance with generally accepted standard scientific procedures
         containing all appropriate data reflecting results of the Research,
         with each page containing at least two (2) signatures. The Principal
         Investigator shall furnish to the Sponsor during the term of this
         Agreement periodic informal written reports regarding the progress of
         the Research. A final report setting forth the significant research
         findings shall be prepared by the Principal Investigator and submitted
         to the Sponsor within ninety (90) days following the expiration of the
         term of this Agreement or the effective date of early termination, as
         set forth in Article 10. In addition, the Principal Investigator will
         make oral technical reports to Sponsor not less frequently than
         quarterly relating to research activities conducted and results and
         accomplishments achieved therefrom during the prior quarter in
         connection with the Research. Sponsor will have the opportunity to
         observe the work being carried on by the University in its laboratories
         on a reasonable basis.

6.       Publication

         The University reserves, on behalf of the Principal Investigator and
         other University employees and/or students, the right to disseminate
         information, or to publish any material resulting from the Research;
         provided, however, the University shall make no such disclosure unless
         the University shall have provided the Sponsor with a copy of any
         proposed publication forty-five (45) days in advance of the submission
         by the University or any University author to a third party of any


                                       2
<PAGE>


         written materials intended for publication. If the Sponsor notifies the
         University that proposed disclosure contains Sponsor's Confidential
         Information, the University shall remove or cause the author to remove
         such Sponsor Confidential Information prior to submission for
         publication or other public disclosure. The Sponsor may request, and
         the University shall agree to, a delay of such proposed publication for
         an additional period, not to exceed forty-five (45) days, in order to
         protect the potential patentability of any invention described therein
         by having the University prepare and file a patent application. The
         Sponsor, at its election, shall be entitled to receive in any such
         publication an acknowledgment of its sponsorship of the Research. It is
         specifically agreed that nothing contained in this agreement will
         interfere with the publication or oral defense of research theses and
         dissertations of graduate students.

7.       Proprietary Information

         All confidential information of either party disclosed to the other
         party in connection with the Research hereunder ("Confidential
         Information") will be treated by the receiving party as confidential
         and restricted in its use to only those uses contemplated by the terms
         of this Agreement. Any information which is to be treated as
         confidential must be clearly marked as confidential prior to
         transmittal to the other party. If such Confidential Information is
         disclosed orally, it shall be identified as being confidential at the
         time of disclosure, and shall thereafter be reduced to writing within
         30 days, marked as confidential, and transmitted to the receiving
         party. The Sponsor may submit Confidential Information only to the
         Principal Investigator, who shall be free to refuse to accept such
         Confidential Information. The obligations of this paragraph shall
         survive and continue for five (5) years after termination of this
         Agreement. Specifically excluded from such confidential treatment shall
         be information which: (a) is or becomes part of the public domain,
         through no fault of the receiving party; (b) is lawfully disclosed to
         the receiving party by a third party who is not obligated to retain
         such information in confidence; (c) is independently developed at the
         receiving party by someone not privy to the confidential information;
         (d) is required to be disclosed to comply with applicable laws or
         governmental regulations, provided that the disclosing party receives
         prior notice of such disclosure and that the receiving party takes all
         reasonable and lawful actions to minimize the extent of such
         disclosure, and if possible to avoid such disclosure; or (e) as of the
         date of its disclosure and/or delivery is already known to the party
         receiving such information, except in the case of disclosures of
         information between Sponsor and the Principal Investigator.

         Each party shall retain full ownership of all its Confidential
         Information in the possession of the other party. At the termination of
         this Agreement, each party shall secure the return of, or destroy, any
         Confidential Information that is in its possession and that is in its
         possession and that is owned by the other party, except that each party
         may retain one copy of such Confidential Information for archival
         purposes.

8.       Results of the Research

         (a) All rights in any inventions or discoveries, whether or not
         patentable, that are developed, conceived or reduced to practice in the
         course of the Research solely by University employees shall be property
         of the University ("University Inventions"). All rights in any
         inventions or discoveries whether or not patentable, that are
         developed, conceived or reduced to practice jointly by University
         employees and Sponsor employees in the course of the Research shall be
         jointly owned by the University and the Sponsor ("Joint Inventions").
         All rights in any inventions or discoveries whether or not patentable,
         that are developed, conceived or reduced to practice in the course of
         the 



                                       3
<PAGE>


         Research solely by Sponsor employees shall be property of the Sponsor.
         The University shall promptly report to the Sponsor any University
         Inventions or Joint Inventions by University employees.

         (b) The University hereby grants the Sponsor a first option to obtain
         an exclusive license under any University Inventions or Joint
         Inventions that are developed, conceived during the term of this
         Agreement, or reduced to practice during the term of this Agreement or
         during the one-year period following termination of this Agreement. The
         University agrees to notify the Sponsor of any such inventions promptly
         and in writing. This option for University Inventions or Joint
         Inventions shall become effective when the Sponsor receives notice from
         the University and shall remain open for ninety (90) days. During this
         ninety (90) day period, the University will make available to the
         Sponsor information that the Sponsor reasonably requests which would be
         useful and necessary in evaluating such University Invention or Joint
         Invention, subject to reasonable confidentiality requirements that may
         be imposed by the University. The Sponsor shall indicate the exercise
         of its option by written notification to the University. Upon receipt
         of such notice, the University and Sponsor shall negotiate an exclusive
         license under such University Invention or Joint Invention under the
         terms of the attached Principles of License Agreement.

         (c) If the Sponsor fails to exercise its exclusive license option to
         any University Invention or Joint Invention within the applicable
         option period, or if the Sponsor notifies the University in writing
         that it will not exercise such option, then the University shall be
         free to offer its rights in such University Invention to any third
         party or to offer its rights in such Joint Invention to any third
         parties, subject, for one year after Sponsor's failure to exercise its
         exclusive option, to the requirement that the University not offer such
         rights to any other party on terms and conditions more favorable to
         such third party than those offered to Sponsor. The foregoing
         notwithstanding, the Sponsor retains its rights in any Joint Invention.

         (d) During any option period applicable to a University Invention, the
         University agrees, if requested by the Sponsor, to cause U.S. or
         foreign patent applications to be filed and prosecuted in its name at
         the Sponsor's expense, using patent counsel reasonably acceptable to
         the Sponsor. The University shall consult with the Sponsor regarding
         the preparation, filing, prosecution, and maintenance or such patent
         applications and shall furnish to the Sponsor copies of documents
         relating thereto in sufficient time to enable the Sponsor to comment on
         them prior to filing. If the Sponsor declines to license such
         University Invention, then the University shall have no further
         obligation to obtain patent protection for such University Invention
         and the Sponsor shall have no further obligation to reimburse the
         University for its expenses. If the Sponsor elects to license such
         University Invention, then the responsibility for patenting such
         University Invention and any associated expenses shall be governed by
         the terms of the resulting license agreement. In the event that the
         University desires to file a patent application with respect to a
         University Invention, and the Sponsor does not agree to reimburse the
         University's expenses by written confirmation made within sixty (60)
         days after the receipt of written notification from the University of
         its intent to file such patent application, the University may file and
         prosecute such patent at its own expense and the Sponsor shall have no
         further rights under this Agreement with respect to such University
         Invention and University shall be free to license to third parties.

         (e) During any option period applicable to a Joint Invention, the
         Sponsor shall have the first right to cause patent applications to be
         filed and prosecuted in the names of both parties at the Sponsor's
         expense using patent counsel reasonably acceptable to the University.
         The Sponsor shall consult with the University regarding preparation,
         filing, prosecution, and maintenance of such 


                                       4
<PAGE>


         patent applications and shall furnish to the University copies of
         documents relating thereto in sufficient time to enable the University
         to comment on them prior to filing. If the Sponsor elects to license
         such Joint Invention pursuant to Section 8(b) hereof, then the
         responsibility for patenting such Joint Invention and any associated
         expenses shall be governed by the terms of the License Agreement. If
         the Sponsor elects not to license such Joint Invention or not to seek
         patent protection for such Joint Invention, then the University shall
         be free to cause patent applications to be filed and prosecuted in the
         names of both parties at the University's expense using patent counsel
         reasonably acceptable to the Sponsor. The University shall consult with
         the Sponsor regarding the preparation, filing, prosecution, maintenance
         of such patent applications and shall furnish to the Sponsor copies of
         documents relating thereto in sufficient time to enable the sponsor to
         comment on them prior to filing.

9.       Ownership Of Property

         Title to any equipment purchased or manufactured by the University in
         the performance of the work funded under this Agreement shall vest in
         the University; provided, however, the Principal Investigator shall be
         entitled at all times to designate the placement of and access to such
         equipment in the Principal Investigator's laboratory or such other
         location at the University as designated by the Principal Investigator
         and approved by the Principal Investigator's Department Chair.

10.      Term and Termination

         (a) This Agreement shall commence on the date hereof and remain in
         effect until terminated by mutual consent. In addition, either party
         may terminate this Agreement upon twelve (12) months' prior written
         notice to the other; provided, however, that no such notice may be
         given prior to the first anniversary of the date hereof.

         (b) Upon receipt of notice of termination, the University shall use its
         best efforts promptly to limit or terminate any outstanding commitments
         and to conclude the work. All costs associated with such termination
         shall be reimbursable, including, without limitation, all
         non-reimbursed costs and non-cancelable commitments incurred prior to
         the receipt of the notice of termination, such reimbursement together
         with other payments not to exceed the total estimated project cost
         specified in Article 4.

         (c) The provisions of paragraphs 5, 6, 7, 8, 9, 12, 14, 15 and 20 shall
         survive such termination of this Agreement.

11.      Notices

         Any notices given under this Agreement shall be in writing and shall be
         deemed delivered when sent by first-class mail, postage paid, addressed
         to the parties as follows (or at such other addresses as the parties
         may notify each other of in writing) :





                                       5
<PAGE>


                The University of North Carolina at Chapel Hill:

Dr. Robert P. Lowman
Associate Vice Provost for Research
Office of Research Services
The University of North Carolina at Chapel Hill
CB #4100, Bynum Hall
Chapel Hill, North Carolina 27599-4100


                                    Sponsor:

Renaissance Cell Technologies, Inc.
P.O. Box 14287
Research Triangle Park, North Carolina  27709
Attention:  W. Bennett Love


12.      Use of University Name

         Sponsor shall not employ or use the name of the University in any
         promotional materials, advertising, or in any other manner without the
         prior express written permission of the University, except that Sponsor
         and its majority shareholder each may, during the term of this
         Agreement, state that it is sponsoring the Research at the University
         and to disclose the terms of this Agreement to prospective investors,
         sublicensees, investment bankers, regulatory authorities, in connection
         with its financing, regulatory, development and stockholder relations
         activities or that it may deem to be required in any prospectus,
         offering memorandum, or other document or filing prepared in connection
         with Sponsor's compliance obligations under applicable securities laws
         or other applicable law or regulation; provided, that Sponsor uses the
         following language, or a reasonably approximation thereof: (1)
         "...based upon inventions licensed from the University of North
         Carolina at Chapel Hill;" or (2) "...based upon research conducted at
         the University of North Carolina at Chapel Hill." Otherwise Sponsor
         shall have given University at least five (5) days prior written notice
         of the proposed text of any such identification or disclosure for the
         purpose of giving University the opportunity to comment on such
         proposed text. In no event shall the sponsoring of the Research be
         considered to be an endorsement by the University of any commercial
         product which may result, indirectly or directly, from the Research.

13.      Relationship of the Parties

         The University, for all purposes related to this Agreement, shall be
         deemed an independent contractor of the Sponsor, and nothing in this
         Agreement shall be deemed to create a relationship of employment or
         agency or to constitute the parties as partners or joint venturers.



                                       6
<PAGE>


14.      Indemnification

         Each of the parties hereby agrees to indemnify, defend and hold
         harmless the other, its directors, employees, students and agents from
         and against any loss, claim, damage or liability of any kind arising
         out of or in connection with the act(s) or failure(s) to act of the
         indemnifying party's directors, employees, students or agents in
         connection with the performance of this Agreement, and/or involving the
         indemnifying party's use and/or possession of the results of the
         Research and/or biological samples or other materials provided by the
         indemnified party to the indemnifying party pursuant to the Research.
         Notwithstanding any other provision of this section, University's
         obligations hereunder shall be subject to the provisions of the North
         Carolina Tort Claims Act, NCGS 143-291, et seq.

15.      No Warranties

         The University makes no warranties, either express or implied, as to
         any matter, including, without limitation, the results of the research
         or any inventions or product, tangible or intangible, conceived,
         discovered or developed under this Agreement; or the merchantability or
         fitness for a particular purpose of the research results of any such
         invention or product. The University shall not be liable for any
         direct, consequential or other damages suffered by the use of the
         research results or any such invention or product. The University
         represents that it has all requisite power and authority to enter into
         this Agreement. Each party represents that this Agreement constitutes
         the legal, valid and binding obligation of it enforceable against it in
         accordance with its terms.

16.      Force Majeure

         The University shall not be liable for any failure to perform as
         required by this Agreement, to the extent such failure to perform is
         caused by any reason beyond the University's control, or by reason of
         any of the following: labor disturbances or disputes of any kind,
         accidents, failure of any required governmental approval, civil
         disorders, acts of aggression, acts of God, energy or other
         conservation measures, failure of utilities, mechanical breakdowns,
         material shortage, disease, or similar occurrences.

17.      Severability

         In the event that a court of competent jurisdiction holds any provision
         of this Agreement to be invalid, such holding shall have no effect on
         the remaining provisions of this Agreement, and they shall continue in
         full force and effect.

18.      Entire Agreement; Amendments

         This Agreement and the Exhibits hereto contain the entire agreement
         between the parties. No amendments or modifications to this Agreement
         shall be effective unless make in writing and signed by authorized
         representatives of both parties.



                                       7
<PAGE>



19.      Similar Research

         Nothing in this Agreement shall be construed to limit the freedom of
         the University or of its researchers who are participants under this
         Agreement, from engaging in similar research made under other grants,
         contracts or agreements with parties other than the Sponsor; provided,
         that before such similar research is conducted by the Principal
         Investigator or by investigators under the supervision of the Principal
         Investigator, the University will offer to Sponsor the opportunity to
         fund such research at the funding level and on similar terms proposed
         by the University to the other party.

20.      Governing Law

         This Agreement shall be governed by and construed in accordance with
         the law of North Carolina.

21.      Counterparts

         This Agreement may be executed in several counterparts, and each such
         counterpart shall be deemed an original and all such counterparts,
         taken together, shall constitute one and the same instrument.




                                       8
<PAGE>


         IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
their duly authorized officers or representatives.


THE UNIVERSITY OF NORTH CAROLINA            SPONSOR
AT CHAPEL HILL

By    /s/ ROBERT P. LOWMAN                       By:   /s/ RICHARD W. REICHOW
      -----------------------                          ----------------------

Robert P.  Lowman, Ph.D.                         Name:  Richard W. Reichow
Associate Vice Provost,                                 ------------------
Office of Research Services                      Title: Chief Financial Officer
                                                        -----------------------
Date      8/19/97                                Date:  September 4, 1997
      --------------                                    -----------------------

Consented to by Principal Investigator:

By    /s/ LOLA M.  REID
      -----------------

Title     Professor
      -----------------

Date     July 1, 1997
      -----------------


                                       9
<PAGE>


                         PRINCIPLES OF LICENSE AGREEMENT

                                     between

                 THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL

                                       and

                       RENAISSANCE CELL TECHNOLOGIES, INC.

The following are the basic terms under which the University and Sponsor agree
that University shall license to Sponsor all University rights to and in any
University Inventions and Joint Inventions (hereinafter, "Inventions") which are
subject to Article 8 of the foregoing Sponsored Research Agreement:

1.       The University shall retain its ownership of any Inventions.

2.       As to each Invention, University will grant an exclusive license
         (except for any rights which may be held by the United States
         Government resulting from any sponsorship by the Government of research
         leading to an Invention) to practice the Invention(s). Each such
         license will be world-wide and for a term expiring upon expiration of
         the patent(s) covering the Invention(s).

3.       There will be an issue fee (not to exceed $50,000 and, with respect to
         the first license hereunder, 12,500 shares of Sponsor Common Stock) for
         any license negotiated hereunder and such license will be
         royalty-bearing. The royalty rate for such license will be 1% of the
         first $50 million of annual net sales of a product or service; 1-1/2%
         of annual net sales between $50 million and $100 million; and 2% of
         annual net sales in excess of $100 million. In the event the Sponsor
         sublicenses the Invention to a third party, the royalty paid to the
         University will not exceed 25% of the royalty received by Sponsor;
         subject to a minimum royalty paid to the University of 1% of annual net
         sales.

4. Any such license will contain at least the following diligence requirements:

         (a)      Minimum annual royalties, which shall begin upon first
                  commercial sale; and

         (b)      Mutually acceptable milestones or minimum funding of research
                  according to which reasonable levels of commercialization of
                  the Invention(s) will be required. Such milestones or minimums
                  shall be usual and customary for the life sciences industry.
                  Payments to University upon achievement of such milestones or
                  minimums shall not exceed $50,000.00 ($100,000.00 in the event
                  that University is not issued Common Stock pursuant to Section
                  3 above). Sponsor's failure to achieve negotiated milestones
                  will result in termination of the license or its conversion to
                  a non-exclusive license, at University's sole option.

5.       Sub-licensing will be permitted, subject to University approval, which
         shall not be unreasonably withheld. University shall receive royalties
         on sub-license net sales of licensed product as if those net sales were
         made by Sponsor, subject to Section 3 above. University shall receive a
         percentage of non-royalty consideration received by Sponsor from any
         sub-licensee that is commensurate to University's appropriate royalty
         set forth above. All sub-licenses will be assigned to University in the
         event the Sponsor's license is terminated or converted to a
         non-exclusive license.

<PAGE>


6.       Sponsor will reimburse University for all reasonable out-of-pocket
         expenses necessary to prosecute and maintain patents on the Invention
         in the United States and in all mutually agreed-upon foreign countries.
         In the event the University wishes to file patent applications in
         non-U.S. countries for which the Sponsor is not willing to pay, the
         University shall be free to proceed with such filing at its own expense
         and the Sponsor shall have no license to the Invention in such
         country(ies). Patent counsel shall be chosen by the University, subject
         to the reasonable approval of Sponsor where Sponsor is reimbursing
         patent expenses.

7.       University will not warrant the validity of any patents included in the
         license, or the usefulness, accuracy, or safety of Invention(s) and/or
         associated know-how.

8.       Each of the parties shall indemnify and hold harmless the other, its
         directors, employees and students from loss and/or damages arising from
         its use and/or possession of the Inventions or from the practice of any
         license entered into hereunder. University's obligations hereunder
         shall be subject to the North Carolina Tort Claims Act, NCGS 143-291,
         et seq.

9.       University will reserve the right to use any licensed technology for
         its own research, educational and teaching purposes.

10.      Additional conventional provisions concerning such things as
         record-keeping, assignability, publicity, marking, construction, and
         choice of laws will also be negotiated.



                                       2