Avaí Bio and Austrianova Announce Research Collaboration with San Raffaele Hospital to Advance Encapsulated Cell Therapy for Diabetes

Agreement combines Austrianova’s Cell-in-a-Box® technology with San Raffaele Hospital’s stem cell-derived beta cell expertise through a research collaboration with Avaí Bio and Austrianova’s JV Company, Insulinova, aimed at advancing an encapsulated cell therapy for diabetes.

LAS VEGAS, NEVADA, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Avaí Bio, Inc. (OTCQB: AVAI) (“Avaí” or the “Company”) and Austrianova, its joint venture partner in Insulinova, today announced that Insulinova has entered into a Research and Option Agreement with Ospedale San Raffaele S.r.l. (OSR), a leading European biomedical research institution, to collaborate on the development of an encapsulated cell therapy for the treatment of Type 1 and insulin-dependent Type 2 diabetes. 

OSR, located in Milan, Italy, is internationally recognized for its leadership in diabetes research, regenerative medicine, and stem cell biology. The collaborative research program will be led by Professor Lorenzo Piemonti, Head of the Regenerative Medicine and Transplant Unit, Director of the Diabetes Research Institute at OSR, and Associate Professor of Endocrinology at Vita-Salute San Raffaele University, together with Dr. Valeria Sordi, Head of the Beta Cell Differentiation Unit, whose pioneering work in beta cell replacement has helped position OSR among the world’s leading centers for diabetes research. 

The collaboration combines three complementary strengths: OSR’s expertise in developing stem cell-derived insulin-producing beta cells, Austrianova’s Cell-in-a-Box^® encapsulation technology, and Insulinova’s mission to advance these technologies toward commercial cell therapies for diabetes. 

Under the agreement, Insulinova will collaborate with OSR to evaluate the combination of stem cell-derived beta cells with Insulinova’s proprietary cell encapsulation platform, based on Austrianova’s Cell-in-a-Box^® technology. The objective is to evaluate whether encapsulation can support beta cell survival and function while providing immune protection, with the long-term goal of reducing or potentially avoiding the need for systemic immunosuppression. 

Insulinova will provide full funding for the research program, supply its proprietary encapsulation equipment, specialized encapsulation materials, technical expertise, and scientific support. OSR will contribute its expertise in stem cell differentiation and beta cell replacement, research personnel, and laboratory facilities. 

“Stem cell-derived beta cells represent a promising approach to restoring insulin production in people with diabetes, but protecting transplanted cells from immune-mediated damage remains a major challenge,” said Dr. Valeria Sordi.  “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. 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 Austrianova (SGAustria Pte. Ltd.) 

Austrianova, based in Singapore, is a leading biotechnology company specializing in cell encapsulation, GMP-grade cell products, and cell line development, backed by over 50 peer-reviewed publications and partnerships with global pharmaceutical and biotech companies. 

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. 

More information about OSR can be found at www.hsr.it 

More information about Avaí Bio can be found at https://www.avaibio.com  

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Forward-Looking Statements 

Certain statements contained in this press release may constitute “forward-looking statements.”  Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact.  Actual results may differ materially from those indicated by such forward-looking statements because of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website (http://www.sec.gov).  In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, governmental and public policy changes, the Company’s ability to raise capital on acceptable terms, if at all, the Company’s successful development of its products and the integration into its existing products and the commercial acceptance of the Company’s products.  The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change.  However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so.  These forward-looking statements should not be relied upon as representing the Company's views as of any date after the date of the press release. 

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