Diamyd Medical today announces that the initial phase of the strategic review, initiated following the discontinuation of the Phase 3 DIAGNODE-3 trial, has been completed.
Strategic review update
The initial review phase has resulted in the identification of a short list of potential counterparties, and the Company will now proceed with a focused evaluation of these.
As part of the review, Diamyd Medical is also evaluating strategic alternatives for its biomanufacturing facility in Umeå including potential stand-alone opportunities, or a divestment.
With respect to retogatein (rhGAD65), the Company does not intend to allocate further internal resources to future clinical development. Instead, efforts will be directed toward organizing, packaging, and preparing the relevant data, documentation, and know-how to enable a potential out-licensing, partnership, or transfer to an external party.
Financial position
The Company currently holds a cash position of SEK 366 million. Following the discontinuation of DIAGNODE-3 and taking trial wind-down costs, restructuring measures, and operational expenses into account, Diamyd Medical estimates that its cash position will correspond to approximately SEK 225 million by the 31st of December 2026.
Diamyd Medical does not intend to provide further updates on the strategic review until a definitive outcome has been reached, in accordance with applicable regulations.
Diamyd Medical has appointed G&W Fondkommission as financial advisor and Vinge as legal advisor in connection with the strategic review.
About Diamyd Medical
Diamyd Medical is a Swedish biotechnology company focused on precision medicine approaches for type 1 diabetes and biological manufacturing. The company's investigational drug candidate retogatein, based on recombinant GAD65, was evaluated in the Phase 3 DIAGNODE-3 trial in recent-onset type 1 diabetes. The Company has established a facility for manufacturing of biological products in Umeå, Sweden. Diamyd Medical's B share is traded on Nasdaq First North Growth Market under the ticker DMYD B. FNCA Sweden AB is the Company's Certified Adviser.