Orgenesis Inc.’s Belgian subsidiary, Orgenesis SPRL, has received formal approval to test its diabetes drug in Belgium and Germany, according to an filing with the Securities and Exchange Commission on Monday.

The company has received approval from the Walloon Region in Belgium for $12.8 million. The project will last three years, starting from January 2017.

More than a quarter of the money is allotted for developmental work at the Belgium-based subsidiary, MaSTherCell S.A.

Orgenesis works to develop technology to combat diabetes by reprogramming human liver cells into glucose-responsive, fully functional insulin producing cells.

The company is working on the Belgium and Germany projects to continue developing the company to an industrial scale. If the testing is successful, the drug could help to free people with Type 1 diabetes from insulin dependence by turning their liver cells into insulin-producing cells.

“We are thankful for the continuing support of from the Walloon Region for our European activity,” said Chief Executive Officer Vered Caplan. “Through our collaboration with Pall Corporation and MaSTherCell, our wholly-owned contract manufacturer and development organization, our activity in the Walloon Region has been tremendously productive.”

The company has already seen successful results in in-vitro and in-vivo studies when using human liver tissues. The technology is based on intellectual property licensed from Israel’s Sheba Medical Center.

The company’s stock opened Monday at 69 cents, up one cent from Friday’s close.