Reporting period, March 1, 2013 - May 31, 2013

  • Net sales amounted to MSEK 0.0 (0)
  • Loss before tax amounted to MSEK -4.0 (-0.8)  
  • Liquid assets and short term investments amounted to MSEK 48.3 (25.2) as of May 31, 2013

First three quarters, September 1, 2012 - May 31, 2013

  • Net sales amounted to MSEK 0.0 (0.5)
  • Loss before tax amounted to MSEK -8.3 (-12.1)

Significant events during the reporting period, March 1, 2013 - May 31, 2013

  • It was decided to implement a rights issue of approximately MSEK 21
  • The new Diamyd Medical was listed on NASDAQ OMX First North
  • The diabetes portfolio was broadened through an exclusive licensing agreement with the University of California at Los Angeles (UCLA)
  • Diamyd Therapeutics was spun out and renamed to Diamyd Medical

Significant events after the reporting period

  • The rights issue was oversubscribed and raises approximately MSEK 21
  • Diamyd Medical expanded its Scientific Advisory Board


CEO Comments
It's now just over two months ago the decision was taken to spin-out Diamyd Therapeutics AB from the Parent Company, now Mertiva AB, and to distribute it to the shareholders with the diabetes operations. The new company assumed the Parent Company's name Diamyd Medical AB and is listed on NASDAQ OMX First North since May 20, 2013. The restructuring is completed and the new Diamyd Medical hereby presents its first quarterly report as an independent company.

The new Diamyd Medical is a dedicated diabetes company. Our initial focus is on the development of the diabetes vaccine Diamyd®and the active substance GAD, which has the potential to become a key piece of the puzzle of a future solution to prevent, treat or cure type 1 diabetes and other forms of autoimmune diabetes.

As a first step in expanding our business, we announced in mid-May that the Company concluded an exclusive licensing agreement with UCLA relating to a patent portfolio for the therapeutic use of GABA (gamma-aminobutyric acid) in connection with type 1 and type 2 diabetes and other inflammatory disorders such metabolic syndrome, rheumatoid arthritis and allergy. The agreement covers, for example, one patent application for a combination therapy including GABA and GAD. The combination has demonstrated favorable results in preclinical studies and we are active in enabling a researcher-initiated clinical study in type 1 diabetes. Recently we also announced that the Company expanded its Scientific Advisory Board with three internationally leading experts on GABA and diabetes.

The acquisition of the rights to the patent portfolio is in line with the Company's strategy for the continued development of the diabetes vaccine, with key focus on combining treatment with Diamyd®with other therapeutics and/or treating earlier in the disease process to achieve a strong beta-cell preserving effect. A simultaneous attack on the disease from several fronts by combining various therapeutics, or by providing treatment before onset of the disease, is, according to many leading diabetes researchers, the key to cure type 1 diabetes. The combination theory is already being tested in an ongoing Swedish Phase II study involving recently diagnosed children, in which the diabetes vaccine is combined with relatively high doses of vitamin D and the anti-inflammatory drug ibuprofen. The study was launched earlier this year and is an externally funded researcher-initiated study. Since 2009, another Swedish researcher-initiated study is being conducted in children with a high risk of developing type 1 diabetes, aiming to prevent the onset of the disease.

To enable a proactive development of the newly in-licensed GABA rights, without encroaching on the existing development plan for the diabetes vaccine Diamyd®, the Company has implemented a share issue with preferential rights for Diamyd Medical's shareholders. We were delighted to announce it was oversubscribed and the Company will receive proceeds of MSEK 20.7 before issue expenses.

The strengthening of the Company's capital base enhances our opportunities to develop effective therapies against diabetes and to complete new out-licensing deals connected to our portfolio of intellectual property rights, which also helps to reduce the risk of the Company. With a strong track record, both in conducting development at a low expense and signing commercial agreements, we are now initiating the development of GABA. At the same time we are investigating new business opportunities and work to initiate additional clinical studies with the diabetes vaccine.

Stockholm, July 3, 2013
Peter Zerhouni
President and CEO Diamyd Medical AB (publ)

Significant events during the reporting period
March 1, 2013 - May 31, 2013

It was decided to implement a rights issue of approximately MSEK 21. In order to finance the development of the new rights received in connection with the signing of an exclusive license agreement with the University of California at Los Angeles (UCLA), the Board of Directors of the new Diamyd Medical, with the support of the mandate granted, decided to implement a share issue in an amount of MSEK 20.7 with preferential rights for Diamyd Medical's shareholders (rights issue).

The new Diamyd Medical was listed on NASDAQ OMX First North. In conjunction with the spin-out of the new Diamyd Medical from the Parent Company Mertiva AB in April 2013, a dedicated diabetes company was formed. The new company has been listed on NASDAQ OMX First North and the first day of trading was May 20, 2013.

The diabetes portfolio was broadened through an exclusive licensing agreement with the University of California. The new Diamyd Medical concluded an exclusive licensing agreement with the University of California at Los Angeles (UCLA) relating to a patent portfolio for the therapeutic use of GABA (gamma-aminobutyric acid) in connection with type 1 diabetes and other inflammatory disorders such as type 2 diabetes, metabolic syndrome and rheumatoid arthritis. The agreement covers, for example, one patent application for a combination therapy including GABA and GAD, which is the active substance in the Company's diabetes vaccine, Diamyd®.

Diamyd Therapeutics was spun out and renamed to Diamyd Medical. At an Extraordinary General Meeting of the former Diamyd Medical AB (now Mertiva AB) on April 22, 2013, it was decided to distribute the subsidiary Diamyd Therapeutics AB with the diabetes operations to the shareholders and to assume the name Diamyd Medical AB. At the same time, the Parent Company (former Diamyd Medical) changed its name to Mertiva AB.

Significant events after the reporting period

The rights issue was oversubscribed and raises approximately MSEK 21. Diamyd Medical's share issue with preferential rights for the Company´s shareholders was oversubscribed. The Company will receive proceeds of MSEK 20.7 before issue expenses.

Diamyd Medical expanded its Scientific Advisory Board. The Company´s Scientific and Medical Advisory Board was expanded with three internationally leading experts on GABA and diabetes: Dr. Bryndis Birnir at Uppsala University, Dr. Brooke Ligon and Dr. Qinghua Wang at Toronto University.

*** To read the complete report, please visit www.diamyd.com, or see attached PDF ***

For more information, please contact:
Peter Zerhouni, President and CEO Diamyd Medical AB. Phone: +46 8 661 00 26

Diamyd Medical AB (publ), Kungsgatan 29, SE-111 56 Stockholm, Sweden. Phone: +46 8 661 00 26 Fax: +46 8 661 63 68. E-mail: info@diamyd.com. Reg. no: 556242-3797

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