In this work, we explore utilizing encapsulated engineered cells for targeted release of anti-inflammatory cytokines. A plasmid encoding the cytokine hIL-10 and suicide system iCasp9 was created and inserted into ARPE-19 cells. After integration, cells were assayed for hIL-10 production and response to an iCasp9 activating molecule. To better understand clinical translatability of a capsule based delivery system, two surgical approaches to delivery of capsules were tested on cadaveric porcine hearts and cadaveric mice. hIL-10 cells showed variable hIL-10 production over 24 hours, ranging from 0.3 - 5.2 pg/cell/24hr. Cells exposed to 1nM of AP1903, 10% of previously reported doses, demonstrated significant cell death over 24 hours. Existing surgical methods involving placement of capsules ultimately proved unsuitable for clinical use. This work serves as an initial proof of concept for treating inflammatory conditions using biologically and physically targeted therapies.