The primary pathogenesis of insulin-dependent (Type 1 and many cases of Type 2) diabetes is loss of pancreatic beta cells, making it a good candidate for cell replacement therapy. Over the past decade Viacyte has developed and refined a protocol for manufacturing pancreatic progenitor cells from human embryonic stem cells (hESC). Animal studies have shown that following implantation, the pancreatic progenitors mature to glucose-responsive insulin-secreting endocrine cells in vivo, and these cells protect animals from a beta cell toxin model of diabetes. Moreover, these cells mature and function similarly whether implanted ‘naked’ or in a durable macroencapsulation device. This talk will focus on recent studies to progress this combination product to the clinic.