Described herein are orthopedic applications of mesenchymal stem cell encapsulated and delivered for treatment of cartilage damage in joints. A therapeutic composition is prepared comprising a purified fraction of adipose-derived mesenchymal stem cells encapsulated in microbeads of a three-dimensional biocompatible gel matrix. The hydrogel microbeads encapsulating stem cells maintain the viability and location of the stem cells for an extended period as compared to stem cells in suspension. The microbeads are implanted adjacent a target orthopedic treatment site where the microbeads allow the release of cellular factors from the encapsulated stem cells to surrounding orthopedic tissues to achieve desired therapeutic results such as healing of cartilage damage in joints.
