Nuvilex, an international biotechnology company providing cell and gene therapy solutions for the treatment of diseases, has acquired the exclusive worldwide rights to use the cellulose-based live-cell encapsulation technology for the development of treatments for diabetes from SG Austria.
Nuvilex has secured $1.5m in funding through the sale of restricted stock to accredited investors at a fixed price of $0.15 per share, a premium to the current market price per share, to complete this acquisition.
The company will use $1m of the funds for this acquisition. The balance of the funds will be used for ongoing preparations for Nuvilex's Phase 3 clinical trials in pancreatic cancer.
Nuvilex's decision to make the acquisition stems, in large part, from the results of 'proof-of-principle' studies in which cells that produce insulin were transplanted into diabetic animals.
The diabetic animals had much higher than normal levels of glucose in their bloodstream and had a difficult time controlling their glucose levels, just as humans with diabetes do.
In animals provided with the encapsulated cells, their blood glucose levels normalized and remained stable for the duration of one six-month study, indicating the encapsulated cells produced insulin in response to their higher than normal blood glucose levels.
The cellulose-based capsules seem to have prevented the encapsulated cells from being attacked by the diabetic animals' immune systems, even in the absence of immunosuppressive drugs. Therefore, the encapsulated cells appear to have acted as an artificial or replacement pancreas.
Nuvilex president and CEO Dr Robert F Ryan noted the company is pleased to have secured this critical financing that has now enabled us to acquire the worldwide rights for the cellulose-based, live-cell encapsulation technology for the development of diabetes treatments.
"This acquisition is a major step in the continuing evolution of Nuvilex as a biotechnology company focused on live-cell encapsulation for the treatment of cancer and diabetes," Ryan added.