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New owner for Diamyd Medical

Diamyd Medical is extending its collaboration with Protein Sciences regarding the development of diabetes treatment. Following the new agreement the American firm becomes one of the larger share holders of Diamyd.

Diamyd Medical and Protein Sciences Corporation have announced that Protein Sciences has broadened its commitment to diabetes and become a strategic and significant shareholder in Diamyd Medical. Protein Sciences will manufacture product for upcoming late stage clinical trials for type 1 diabetes involving Diamyd Medical’s recombinant GAD (glutamic acid decarboxylase) protein made using Protein Sciences’ proprietary Baculovirus Expression Vector System (BEVS) technology.

Under the Agreement Diamyd Medical is placing an order for cGMP production of recombinant GAD protein for which Protein Sciences receives a cash payment and 400,000 new series B shares in Diamyd Medical corresponding to a 2.0% ownership in Diamyd Medical. The ownership stake will make Protein Sciences a strategic and one of the largest shareholders in Diamyd Medical. 100,000 of the new shares will be issued upon entering the Agreement and the remainder at completion of production. The shares will be issued under the Annual General Meeting’s authorization of the Board.

“Diamyd Medical has been a longstanding partner of Protein Sciences, and we believe their approach to treating diabetes holds great promise,” said Dan Adams, Executive Chairman of Protein Sciences. “The GAD product is an excellent demonstration of the versatility of our BEVS platform that can be used to make a wide variety of products, including our revolutionary Flublok influenza vaccine.”

“It is strategically important for the development of Diamyd that the relationship between manufacturing and commercialization is deepened and we welcome Protein Sciences to become one of our largest shareholders,” said Anders Essen-Möller, Chairman of Diamyd Medical. “We believe their technology is the best for making recombinant proteins such as GAD. FDA approval of Flublok only makes the platform more valuable to partners such as us, as the significant regulatory hurdles that typically face new technologies have already been cleared.”

Source: Diamyd Medical