Scalable Biotech Manufacturing Unlocks a $14B Market

Canada NewsWire

Issued on behalf of Avaí Bio, Inc.

VANCOUVER, BC, March 27, 2026 /CNW/ -- USANewsGroup.com News Commentary — The global cell therapy manufacturing market is hitting a pivotal inflection point. It's projected to surpass $7 billion in 2026 and reach $14 billion by 2035^[1], driven by over 1,000 active clinical candidates globally. To keep up with this massive demand, the FDA just stepped in with new flexibility measures for cell and gene therapies^[2]. By easing manufacturing requirements from the lab to commercial launch, regulators are accelerating the timeline for life-saving product approvals. This historic shift toward scalable bioproduction infrastructure is creating deep, sustainable value across a new class of durable therapy developers, including Avaí Bio (OTCQB: AVAI), ImmunityBio (NASDAQ: IBRX), Fate Therapeutics (NASDAQ: FATE), Fractyl Health (NASDAQ: GUTS), and Moleculin Biotech (NASDAQ: MBRX).

Wall Street and industry analysts have already identified tight biologics capacity and constrained operations^[3] as the defining bottlenecks of the 2026 manufacturing landscape. Production capability is no longer just a background detail; it is a highly coveted strategic asset. Regulators are actively responding to this supply crunch by loosening strict process validation rules and allowing concurrent lot releases^[4] for qualified programs. Because of this, scalable GMP foundations have quickly become the primary value driver for companies looking to dominate the next wave of clinical manufacturing.

Avaí Bio (OTCQB: AVAI) and joint venture partner Austrianova have begun manufacturing a Master Cell Bank (MCB) of genetically modified cells engineered to produce high levels of the ?-Klotho protein, a naturally occurring molecule that researchers have linked to slower aging and lower rates of diseases like Alzheimer's and certain cancers. Peer-reviewed studies have shown that higher circulating Klotho levels correlate with reduced risk of neurodegenerative disease, drawing growing scientific interest to the protein's therapeutic potential.

Think of the MCB as a permanent, lab-grade seed vault from which the company will create a Working Cell Bank, while storing the MCB cells for many years to come. Every vial—filled with millions of cloned cells inside—traces back to a single verified cell, manufactured under strict Good Manufacturing Practice (GMP) standards. That matters because when a company eventually scales up production, it needs a clean, consistent starting point. Without one, batches can drift, contamination risk climbs, and regulators start asking hard questions. With a qualified MCB in place, Avaí and Austrianova now have that foundation locked in.

"MCBs are a prerequisite for the production of Cell-in-a-Box® encapsulated cell products," said Prof. Walter H. Gunzburg, Chairman of Austrianova. "They provide the foundation for sustainable production and ensure they meet the highest quality standards."

The cells, which will make up a smaller Working Cell Bank, will be used for all of the company's research and clinical trials, and feed directly into Austrianova's proprietary Cell-in-a-Box® encapsulation platform, which packages living cells inside a pin-head-sized, sphere-shaped protective capsule so they can be implanted inside the body and continue producing a target protein over time. The end goal is a cell-based therapy that restores circulating Klotho levels in patients, potentially offering durable protection against age-related decline without requiring repeated dosing.

"We are excited to enter the first step in the production phase of ?-Klotho producing cells as part of our commitment to deliver safe, effective treatments for aging associated diseases," said Chris Winter, CEO of Avaí Bio.

The work is being advanced through Klothonova, a Nevada-based joint venture formed last September and owned equally by both companies. Klothonova sits alongside Insulinova, a separate diabetes-focused program, as one of two active pipelines in Avaí's portfolio. Both programs employ Austrianova's encapsulation technology.

Avaí Bio recently completed a full rebrand and pivot into biotechnology, formerly operating as Avant Technologies. The company now concentrates on sourcing, developing, and protecting advanced cellular therapies through strategic joint ventures and licensing agreements. All preparatory activities for the MCB were completed in February, allowing the partners to move directly into the production phase without delay.

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In other industry developments:

ImmunityBio (NASDAQ: IBRX) has validated a scalable manufacturing pathway for its autologous memory cytokine-enhanced natural killer cell platform, enrolling 74 subjects across its NK2022 and NK2023 programs and completing a Phase 1 safety trial combining M-ceNK cells with ANKTIVA® with zero Grade 4 or 5 treatment-related adverse events and zero cytokine storm events across 10 treated cancer patients. A single apheresis collection now yields up to 5 billion highly pure M-ceNK cells, providing 8-10 therapeutic doses with finished product available within 12 days.

"These data demonstrate that potent NK cell therapy can be manufactured at scale and administered safely, potentially offering a reliable autologous source of potent NK cells," said Patrick Soon-Shiong, MD, Founder, Executive Chairman and Global Chief Scientific and Medical Officer of ImmunityBio. "The ability to generate up to 5 billion highly pure NK cells from a single apheresis collection, yielding up to 8-10 therapeutic doses within 12 days, opens the possibility of creating the 'World Bank of Natural Killer Cells', with NK cells able to be universally donated to any patient without HLA matching."

With manufacturing methods now established for AI-driven robotic systems under the NANT Leonardo platform, ImmunityBio is positioned to translate its cell banking infrastructure into first-in-human clinical programs at scale. NCI-presented preclinical data from AACR IO 2026 also showed M-ceNK cells combined with ANKTIVA® produced statistically significant tumor volume reductions in two SCLC xenograft models.

Fate Therapeutics (NASDAQ: FATE) has achieved a landmark clinical milestone by successfully treating autoimmune patients with its FT819 off-the-shelf CAR T-cell therapy in an outpatient setting, eliminating the extended hospitalization requirements that have restricted patient access to CAR T therapies. Enrollment in the FT819-102 Phase 1 basket trial now spans 16 sites across the U.S., U.K., and EU, with 15 systemic lupus erythematosus patients and four systemic sclerosis patients treated to date, including early evidence of meaningful disease improvement in the first SSc patient reaching a 3-month evaluation.

"I am extremely proud of the progress the Fate team delivered in 2025, including bringing to fruition the treatment of FT819 off-the-shelf CAR T cells as outpatient therapy, eliminating the need for extended hospital stay requirements seen today with other CAR T-cell programs, which now uniquely expands autoimmune patient access, including in underserved regions, while significantly improving health system economics," said Bob Valamehr, M.B.A., Ph.D., President and CEO of Fate Therapeutics. "We have a well-capitalized balance sheet ensuring runway through 2027 and believe we are uniquely positioned to drive long-term value creation."

Fate Therapeutics closed 2025 with $205.1 million in cash and investments, supporting an operating runway through year-end 2027, underpinned by a 30% reduction in operating expenses versus 2024. The company's next-generation FT836 program also reported early clinical activity in colorectal cancer, including a greater than 50% reduction in CEA levels and tumor reduction across all target lesions, without the use of conditioning chemotherapy.

Fractyl Health (NASDAQ: GUTS) has completed randomization in the REMAIN-1 Pivotal Cohort evaluating its Revita® duodenal ablation procedure for post-GLP-1 weight maintenance, with topline 6-month data expected in early Q4 2026 and a potential FDA De Novo marketing application submission targeted for late Q4 2026. New post-hoc analyses from the REMAIN-1 Midpoint Cohort show a statistically significant dose-dependent treatment effect, with participants receiving above-median GLP-1 weight loss retaining 88% of that weight loss at six months versus only 60% in sham participants.

"Completion of randomization in the REMAIN-1 Midpoint and Pivotal Cohorts marks a critical execution milestone, and today's new analyses from the Midpoint Cohort 6-month data gives us even greater anticipation for what the pivotal study might show," said Harith Rajagopalan, M.D., Ph.D., Co-Founder and CEO of Fractyl Health. "Approximately 30 million patients are projected to be on GLP-1s by 2035. The majority will face discontinuation and significant weight regain. Fractyl stands alone developing the first potential procedural option for post-GLP-1 weight maintenance with pivotal data expected this year."

With cash of approximately $81.5 million as of December 31, 2025, supplemented by $4.1 million in subsequent warrant proceeds, Fractyl Health maintains a runway into early 2027, extending beyond the anticipated pivotal data readout. The company's Rejuva® gene therapy platform is also advancing, with first-in-human dosing of RJVA-001 for type 2 diabetes expected in H2 2026, subject to regulatory authorization.

Moleculin Biotech (NASDAQ: MBRX) has enrolled its 45th subject in the pivotal Phase 2B/3 MIRACLE trial evaluating Annamycin in combination with cytarabine for relapsed or refractory acute myeloid leukemia, triggering the protocol-specified interim data unblinding now anticipated for mid-2026. Early blinded composite data from the first 30 patients showed a 40% complete remission rate, including patients who had previously failed venetoclax-based regimens and carried adverse genetic markers, comparing favorably to historical outcomes with cytarabine alone.

"We believe this upcoming data readout represents the most important milestone in our history to date," said Walter Klemp, Chairman and CEO of Moleculin. "Reaching the 45 subject mark brings us to the threshold of our first meaningful look at MIRACLE data. Our Phase 2 AML MB-106 clinical trial generated greater efficacy than any drug ever approved for relapsed or refractory AML, and it contributed to the more than 100 patients treated to date without any associated cardiotoxicity."

Enrollment continues in parallel as Moleculin Biotech advances toward 90 total subjects, expected to conclude Part A of MIRACLE in Q3 2026, with a second unblinding and Phase 3 dose optimization to follow. The program is designed to support an accelerated approval pathway based on the complete remission primary endpoint, with the adaptive trial structure integrating Phase 2B data directly into the planned Phase 3 registration.

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SOURCES:

1. https://www.researchandmarkets.com/report/cell-therapy-manufacturing? utm_source=GNE&utm_medium=PressRelease&utm_code=s67rx7&utm_campaign=2182410+-+%2414%2b+Bn+Cell+Therapy+Manufacturing+Market+Trends+and+Forecasts%2c+2035+-+Researchers+are+Exploring+Over+1%2c000+Cell+and+Gene+Therapy+Candidates+Targeting+a+Wide+Range+of+Disease+Indications&utm_exec=chdomspi
2. https://www.onclive.com/view/fda-outlines-flexible-approach-to-cmc-oversight-for-cell-and-gene-therapies
3. https://pharmasource.global/content/expert-insight/what-to-expect-in-pharma-manufacturing-in-2026-industry-leaders-share-their-predictions/
4. https://www.bigmoleculewatch.com/2026/02/12/reforms-to-fda-requirements-for-cell-and-gene-therapy-products/

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