Breakthrough Diabetes Research to Be Commercialized by US-Based Nuvilex, Inc.

SYDNEY, AUSTRALIA--(Marketwired - November 03, 2014) - Australian research that has produced a line of insulin producing cells that could eliminate the need for injections for Type 1 diabetics will be commercialized by US company Nuvilex, Inc. (OTCQB: NVLX) and its subsidiaries Nuvilex Australia and Nuvilex Europe.

The clinical-stage biotechnology company has obtained exclusive worldwide rights to use human insulin producing cells, termed "Melligen" cells, developed by University of Technology - Sydney's (UTS) Professor Ann Simpson and her colleagues.

In Type 1 or juvenile-onset diabetes the islet cells have been destroyed by an autoimmune disease.

Professor Simpson has been working over the past 20 years to develop the capacity of liver cells to take over the function of the pancreatic "islet" cells that normally produce insulin in the body and this agreement is a significant milestone for her work.

Professor Simpson began exploring the possibility activating liver cells to take up the role of the pancreas early in her research because of their similar makeup. "When a foetus develops, the liver and the pancreas form from the same endodermal origin," she said.

"I am pleased that after many years of diabetes research at UTS, Nuvilex will now be developing this technology for commercialization to a global market," Professor Simpson said. "My team and I are excited by the prospect of working with Nuvilex to eliminate daily injections for insulin-dependent diabetic patients."

Nuvilex will undertake further study of Melligen cells with the goal of encapsulating them using the company's novel and proprietary Cell-in-a-Box® cellulose-based live cell technology. Animal testing will be undertaken to prove the encapsulated cells are capable of producing insulin "on demand" in diabetic animals.

Ultimately encapsulated Melligen cells will be placed into patients with Type 1 diabetes where it is hoped they will function as a form of "bio-artificial pancreas". In laboratory studies, Melligen cells have been shown to respond directly to the amount of glucose in their surroundings.

"This is a disease that affects millions of individuals around the world," said Nuvilex's CEO and President, Kenneth L. Waggoner. "Some of the complications diabetics suffer from are eye disease, foot and leg problems, kidney disease and cardiovascular disease. These complications can be dangerous and even life-threatening.

"If we are successful, those afflicted with Type 1 diabetes will be freed from depending on daily insulin injections or the use of insulin pumps as well as the constant need to monitor their blood glucose levels and modify their diets."

The announcement of the Nuvilex agreement has coincided with the awarding of a National Health and Medical Research Council (NHMRC) grant to Professor Simpson for related work. Over the past 20 years she has received more than $7 million to advance research aimed at reversing Type 1 diabetes by using the liver as a surrogate system to produce insulin.