Avant and SGAustria Launch Insulinova JV to Advance Encapsulated Stem‑Cell Diabetes Therapy

Avant and SGAustria form US-based JV to develop encapsulated stem‑cell diabetes treatment

Avant Technologies and SGAustria have formed a joint venture and signed a licence agreement to develop a diabetes therapy that combines a proprietary stem‑cell differentiation process with SGAustria's cell‑encapsulation platform. The collaboration targets type 1 diabetes and some insulin‑dependent type 2 cases by converting stem cells into insulin‑producing cells through a reproducible differentiation method.

Work on the differentiation method will proceed under a formal research collaboration agreement (RCA). The joint venture will focus on research, development, manufacture and commercialisation of therapies that use encapsulated stem cells at stages before, during or after differentiation. By pairing RCA‑derived stem‑cell expertise with SGAustria's encapsulation technology, the partners aim to deliver scalable, safety‑focused solutions for global use.

To support clinical development, the partners will establish a US‑based company called Insulinova to facilitate regulatory engagement and clinical trials. SGAustria holds an exclusive licence to the encapsulation platform and may obtain a further licence contingent on successful completion of the RCA, positioning the JV to address a significant public‑health need.

Chris Winter, CEO of Avant Technologies, said: ‘We are thrilled to join forces with SGAustria in this game‑changing JV. Merging our capital and forward‑thinking strategy with their advanced biotech innovations sets the stage for potentially transformative diabetes therapies.’

SGAustria is contributing a cell‑encapsulation platform supported by more than 50 peer‑reviewed studies and collaborations with international biotech companies. The technology is designed to transport, protect, isolate and store living cells and is positioned to improve the safety and scalability of cell therapies.

Avant will provide initial funding over the next eight months to meet criteria for a reproducible diabetes therapy and will seek additional investment to progress toward a potential Phase I trial in the US or an equivalent jurisdiction.

Brian Salmons, CEO of SGAustria, said: ‘SGAustria's encapsulation platform holds tremendous promise for reshaping cell therapies. Teaming up with Avant and a prospective RCA partner lets us leverage our combined capabilities to deliver reliable diabetes treatments, supported by our GMP production and cellular‑science expertise.’

Next steps: finalise the RCA, complete preclinical milestones, raise further funding, and prepare Insulinova for regulatory submissions and early‑phase clinical testing.

Source: Article originally published by Pharmaceutical Technology, a GlobalData brand. This content is for informational purposes and not medical advice; clinical outcomes, timelines and regulatory pathways remain subject to change.