Avaí Bio and Austrianova Hold First Joint Steering Committee Meeting with Ospedale San Raffaele for Diabetes Cell Therapy Program

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.”

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 integrates scientific research, education, and clinical practice to support the study and treatment of diseases and the development of new therapies.

More information about Avaí Bio can be found at https://www.avaibio.com
More information about Austrianova can be found at https://austrianova.com
More information about OSR can be found at www.hsr.it

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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.

CONTACT: Avaí Bio, Inc.
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