This press release can be viewed online at: https://www.globenewswire.com/news-release/2026/10/07
LAS VEGAS, NEVADA, Oct. 07, 2026 (GLOBE NEWSWIRE) — Avaí Bio, Inc. (OTCQB: AVAI) (“Avaí” or the “Company”) and its joint venture partner Austrianova, today announced the first joint steering committee meeting for their collaboration with Ospedale San Raffaele S.r.l. (OSR), to discuss the initial research program for evaluating an encapsulated beta-cell replacement approach for insulin-dependent diabetes.
The meeting brought together Prof. Lorenzo Piemonti, Director of the Diabetes Research Institute at OSR, and Dr. Valeria Sordi, Head of the Beta Cell Differentiation Unit, together with Austrianova’s Prof. Walter H. Gunzburg and Dr. Brian Salmons, and Dr. Eva Maria (Lilli) Brandtner, consultant to Insulinova and staff researcher at the Vorarlberg Institute for Vascular Investigation and Treatment (VIVIT).
Avaí Bio and Austrianova established Insulinova as an equally owned joint venture to explore encapsulated cell-based therapies for diabetes. Under the collaboration with OSR, the partners will evaluate the encapsulation of OSR’s stem cell-derived beta cells using Austrianova’s Cell-in-a-Box® technology.
The initial work will focus on determining whether encapsulated beta cells can maintain viability and function. These studies are intended to provide the experimental basis for assessing whether the encapsulation platform can support beta-cell viability and function, and, subsequently, whether it may offer a strategy to improve immune protection of transplanted cells.
“This first meeting allowed the teams to align on the experimental program and the initial development priorities,” said Chris Winter, Chief Executive Officer of Avaí Bio. “The collaboration combines Ospedale San Raffaele’s expertise in stem cell-derived beta-cell differentiation and beta-cell replacement with Austrianova’s cell encapsulation platform, and the next step is to generate the data needed to assess how the two technologies perform together.”
Dr. Brian Salmons, Chief Executive Officer of Austrianova, added, “Cell encapsulation has long been investigated as a potential strategy to protect therapeutic cells following transplantation. This collaboration gives us the opportunity to evaluate our Cell-in-a-Box® technology with stem cell-derived beta cells in a structured experimental program, and to determine whether the approach warrants further development.”
“Beta-cell replacement represents an important therapeutic strategy for diabetes, but significant challenges remain, particularly in protecting transplanted cells from the immune system,” said Prof. Lorenzo Piemonti, Director of the Diabetes Research Institute at Ospedale San Raffaele. “This collaboration allows us to evaluate Austrianova’s encapsulation technology using our stem cell-derived beta-cell platform. We are at an early stage, and the immediate priority is to establish whether the approach can preserve beta-cell viability and function under well-controlled experimental conditions. These data will determine how, and whether, the program should progress toward further development.”
“This collaboration will allow us to investigate whether the Cell-in-a-Box® encapsulation platform can provide a suitable environment for stem cell-derived beta cells while preserving their viability and function. We look forward to evaluating the potential of this approach as part of the broader effort to develop safe and effective beta cell replacement therapies.”
Chris Winter, Chief Executive Officer of Avaí Bio, added, “This agreement represents a significant milestone in the advancement of our diabetes program.
Chris Winter, Chief Executive Officer of Avaí Bio, added, “This agreement represents a significant milestone in the advancement of our diabetes program. By bringing together OSR’s internationally recognized expertise in stem cells and beta cell replacement with the technologies and capabilities of our joint venture, Insulinova, we have established a strong framework to advance this program toward commercialization. Just as importantly, the agreement positions Insulinova to further develop innovation arising from this collaboration and advance the development of potential new cell therapies for diabetes.”
“Cell-in-a-Box® was developed to overcome one of the fundamental challenges in cell therapy—protecting therapeutic cells while allowing them to function normally,” said Dr. Brian Salmons, Chief Executive Officer of Austrianova. “Combining that technology with OSR’s expertise in producing stem cell-derived beta cells creates an exciting opportunity to develop a next-generation therapy for diabetes. We believe this collaboration highlights the strength of Insulinova’s platform and its potential to bring meaningful innovation to patients.”
About Avaí Bio, Inc.
Avaí Bio, Inc. is an emerging biotechnology company focused on identifying genetically modified cell lines, and through joint venture and licensing agreements developing innovative cell-based therapies.
About Ospedale San Raffaele
San Raffaele Hospital, part of the San Donato Group, is a university hospital and internationally renowned research institute with highly specialized expertise in the diagnosis and treatment of several major diseases. Founded in 1971 and recognized in 1972 as a Scientific Institute for Research, Hospitalization and Healthcare (IRCCS), it serves as a Highly Specialized Emergency Center (E.A.S.) and as the teaching hospital of Vita-Salute San Raffaele University.
The IRCCS San Raffaele Hospital is accredited by the Italian National Health Service and offers more than 60 clinical specialties. Its multidisciplinary organization, state-of-the-art technology, and the continuous integration of scientific research, education, and clinical practice have enabled the institution to achieve outstanding results over the years, placing it at the top of the Italian rankings for scientific productivity and establishing it as a leading reference center in Europe and worldwide for the study and treatment of numerous diseases, as well as for the development of innovative therapies.
About Austrianova
Austrianova (the SG Austria Group), is a biotech company with a global footprint and operations in Singapore, Thailand, and Germany. Austrianova utilizes a novel and proprietary technology for the encapsulation of living mammalian (Cell-in-a-Box®) and bacterial (Bac-in-a-Box®) cells. Cell-in-a-Box® protects the encapsulated cells from rejection by the immune system, allows cells to be easily transported, stored and implanted at specific sites in patients. The technology, which has been proven safe and efficacious in clinical trials carried out in Europe, allows companies to develop any kind of cells as a one-for-all living pharmaceutical. Bac-in-a-Box® is a similar protective device adapted for encapsulation of probiotic bacteria where it has human food and animal feed applications as well as re-balancing the microbiome due to its ability to extend storage under lyophilized conditions and to protect encapsulated bacteria against destruction by stomach acid.
Austrianova now also offers Pep-in-a-Box encapsulation of enzymes, proteins, and supplements to protect them from stomach acid digestion, as well as GMP4Cells services that include competitively priced Master Cell Bank and Working Cell Bank production and other production services for cell therapy products (such as stem cell therapies and biologics produced from cells, e.g., recombinant proteins, exosomes, etc.).
Forward-Looking Statements
This release includes forward-looking statements regarding SGAustria (the Company) and its respective businesses. Such statements are based on the current expectations of the management of each entity. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including risks affecting the Company, economic factors, and the equity markets generally. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. This is not an offer or solicitation to buy or sell any securities.
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