Sernova and Seraxis close $11.2 million financing to advance SR-02 stem cell-derived islet cell therapy and prepare for a Phase 1/2 trial in type 1 diabetes.
Written By: Umesh Hanumante,
M.Pharm (Reg. Affairs)
Reviewed By: Pharmacally Editorial Team
Sernova Biotherapeutics and Seraxis Holdings have closed an $11.2 million non-brokered financing to fund manufacturing and clinical development of SR-02, an allogeneic stem cell-derived pancreatic islet cell therapy for type 1 diabetes (T1D), as the companies prepare to merge and form BetaNova Biotherapeutics.
Financing Supports SR-02 Clinical Development
The financing exceeds the previously announced targeted $10 million raise and includes convertible notes and common stock purchase warrants issued by Seraxis. Participation came from existing shareholders, new investors, and company insiders and management.
The proceeds will support cGMP manufacturing of SR-02, preparation for patient enrollment, and clinical development activities. The companies expect to begin enrolling people with T1D in a Phase 1/2 trial during the fourth quarter of 2026, with first patient dosing planned for the first quarter of 2027 under an FDA-cleared Investigational New Drug (IND) application.
Initial clinical data are expected in the first half of 2027.
Cell Replacement Approach for Type 1 Diabetes
T1D results from autoimmune destruction of pancreatic beta cells, leading to inadequate insulin production and dependence on exogenous insulin. Cell replacement has emerged as a strategy to restore endogenous insulin production, but transplanted pancreatic cells can face immune-mediated rejection and may require chronic immunosuppression.
SR-02 consists of allogeneic pancreatic islet cells derived from stem cells. Seraxis is developing the therapy in combination with an immune-tolerizing strategy intended to support cell survival without conventional systemic immunosuppression.
The program is complemented by Sernova’s Cell Pouch Bio-hybrid Organ, an implantable device intended to provide a vascularized environment for therapeutic cells. The proposed combination brings together Seraxis’ stem cell-derived islet technology and manufacturing capabilities with Sernova’s experience in cell engraftment and the Cell Pouch platform.
SR-03 Extends the Cell Therapy Pipeline
Seraxis is also advancing SR-03, a next-generation version of its pancreatic islet cell platform. SR-03 incorporates gene edits intended to increase compatibility with the recipient and potentially improve long-term engraftment while reducing dependence on immune suppression.
The companies expect to advance SR-03 toward an IND submission in the second half of 2027.
Merger to Form BetaNova
Sernova and Seraxis entered a definitive merger agreement on September 7, 2026. The proposed transaction will create BetaNova Biotherapeutics, a clinical-stage regenerative medicine company focused on cell-replacement therapies for T1D.
Subject to required approvals and customary closing conditions, shareholders of Sernova and Seraxis are expected to collectively own approximately 50% each of BetaNova on a non-diluted basis. The financing notes are expected to automatically convert into BetaNova common stock when the merger closes.
Sernova CEO Jonathan Rigby said the financing provides capital to execute the development milestones planned for BetaNova, while Seraxis CEO Will Rust said the proceeds will support manufacturing activities and preparations for the Phase 1/2 trial.
Key 2026–2027 Milestones
The immediate priority is cGMP production of SR-02 and preparation for clinical enrollment. Beyond first dosing in early 2027, BetaNova is targeting initial clinical data in the first half of 2027 and an SR-03 IND submission in the second half of the year.
BetaNova also plans to pursue Nasdaq listing readiness in the first quarter of 2027, subject to applicable requirements and approvals.
The clinical programs will be important tests of whether stem cell-derived islet replacement, combined with immune-tolerance strategies and Sernova’s implantation platform, can provide sustained functional cell replacement for people with T1D without chronic immunosuppression.
Reference
Sernova and Seraxis Close US$11.2 Million Financing to Fund Merger to Become BetaNova Biotherapeutics and Advance Type 1 Diabetes Cell Therapy into Near Term Phase 1/2 Clinical Trial, Sernova, 05 October 2026
About the Writer
Umesh Hanumante (M.Pharm) (LinkedIn) is a pharmacy professional and healthcare writer with a background in Regulatory Affairs, pharmaceutical innovation, and clinical research. He has around two years of industry experience as an Executive PMT at Troikaa Pharmaceuticals Ltd and qualified GPAT 2024. His areas of interest include regulatory compliance, dossier preparation, clinical trials, emerging therapies, and advancements in the global pharmaceutical and healthcare sector.
