Diamyd Medical has successfully completed a directed share issue of 5 357 143 B-shares at a price of SEK  28 per share.

Through the Directed Share Issue, the company will receive gross proceeds of SEK 150 million. The Directed Share Issue was subscribed by qualified investors, states the company.

”The company is developing strongly and with a strengthened cash position, we continue accelerating to reach important value-creating milestones in our phase III trials and in the manufacturing facility in Umeå,” says Ulf Hannelius, CEO of Diamyd Medical.

Important milestones

The proceeds will be used to achieve important milestones with a focus on initiating a precision medicine phase III trial with the diabetes vaccine Diamyd in all countries selected, according to the company. In addition, the proceeds will be used for the ongoing establishment of Diamyd Medical’s manufacturing facility in Umeå, Sweden, for the production of the recombinant human protein GAD65, the active component of the therapeutic diabetes vaccine Diamyd.

The Phase III trial

The phase III trial is designed to confirm the efficacy and safety of Diamyd in individuals recently diagnosed with type 1 diabetes and who carry the genetic HLA haplotype where efficacy is likely (approximately half of this target group). Approximately 330 patients will be recruited for the trial and the trial will be conducted at approximately 50 clinics in Europe and the US.

The future CGMP-certified production process at the facility in Umeå is a central part of Diamyd Medical’s regulatory strategy for potential future conditional and accelerated market approvals for the diabetes vaccine Diamyd, states the company.

Photo of Ulf Hannelius: Ellinor Colling