BioWorld International Correspondent

Austrianova Biomanufacturing AG has established a research subsidiary in Singapore to conduct feasibility studies on its cell encapsulation technology, and to plug into the network of academic researchers, biotech and big pharma firms and investors, it is developing around the state's Biopolis hub.

"Here, we're trying to branch out into non-oncologic uses of our encapsulation technology," Brian Salmons, chief scientific officer and founder of Vienna, Austria-based Austrianova, told BioWorld International. The company already has engaged in four collaborative research projects in Singapore, one of which involves a large, unnamed pharmaceutical firm.

Up to now, Austrianova, which was established as a spinout from the University of Veterinary Medicine in Vienna in 2001, has concentrated on developing encapsulated cell therapies for cancer, based on its proprietary method for encasing living cells in cellulose sulphate. Its most advanced clinical candidate, Novacaps, has completed a Phase I/II clinical trial in pancreatic cancer.

It consists of systemic administration of the prodrug ifosfamide combined with localized delivery of encapsulated HEK 293 cells that are engineered to express the liver enzyme cytochrome P450. That converts the prodrug into an intermediate that can enter pancreatic cells. Once inside, it spontaneously forms phosphoramide mustard and acrolein, which exert antitumor effects by alkylating DNA and proteins, respectively. "We're planning to start the Phase III trial early next year. That will be a pan-European study," Salmons said.

The new venture, Austrianova Singapore Pte Ltd., will focus on a wide range of additional cell types and indications including diabetes, vascular disease and immunotherapy.

Singapore has gained an international profile as a center for stem cell research, because of a liberal regulatory regime and a supportive financial climate. That also offers potential for Austrianova.

"That would be an interesting use of encapsulation technology, because there are safety concerns about using stem cells," Salmons said. Encapsulation could be used to confine the location of stem cells to where they are needed, he said, and to enable their removal should problems develop.

The Singapore Economic Development Board has provided "significant financial support" to Austrianova's establishment of the subsidiary, the company said.

"I don't think it's going to cost us a lot to be out here," Salmons noted.

About five staff members will be located in Singapore. The company's main clinical development and manufacturing activities will continue in Vienna and in Frankfurt, Germany.

In addition to conducting research and development, the company will engage in regional business development activity. Seeking investment from Singapore's biotech investors "could be a possibility," Salmons said.

The company closed the first tranche of a €35 million (US$49.6 million) Series B round earlier this year, and the second closing should be completed before year-end.