Octamer-binding transcription factor 4 (Oct4) is a transcription factor which, with Sox2, Klf4, and c-Myc, is involved in the reprogramming of somatic cells to produce pluripotent stem cells. OAC2 is an Oct4-activating compound which activates expression through the Oct4 gene promoter. In cells expressing Oct4 with Sox2, Klf4, and c-Myc, OAC2 (1 μM) enhances reprogramming efficiency by increasing the rate of production of induced pluripotent stem cells (iPSCs) from embryonic fibroblasts. The iPSCs developed using OAC2 retain the capacity for pluripotent differentiation, whether evaluated in vitro or in vivo.