Diamyd Medical invests MSEK 1.5 in NextCell Pharma for development of stem cell therapies
Diamyd Medical today announced that the Company will invest approximately MSEK 1.5 in NextCell Pharma AB. The investment will be made in two steps, an immediate investment of MSEK 0.6, and MSEK 0.9 during a planned initial public offering of NextCell Pharma this summer. After the immediate investment, Diamyd Medical’s ownership in NextCell Pharma will amount to approximately 16%, and is expected to become approximately 10% after the public offering.
”The development of stem cell therapies for autoimmune and anti-inflammatory diseases as well as for cancer, gene therapy and tissue regeneration, is progressing at a raging pace around the world. NextCell Pharma will position itself on the market with pharmaceutical solutions based on its proprietary method for selection of mesenchymal stem cells from umbilical cord tissue and is now set on continued development and commercialization”, says Anders Essen-Möller, Chairman (Director) of the Board of NextCell Pharma and Board member of Diamyd Medical.
”We see a clear need for a company like NextCell Pharma within the field of stem cell therapies. Diamyd Medical’s holding in NextCell Pharma is also in line with our ambition to develop treatments of diabetes and inflammatory diseases”, says Ulf Hannelius, CEO of Diamyd Medical.
About NextCell Pharma
Stem cells are expected to revolutionize the way we treat several diseases that today have fatal outcomes. NextCell Pharma AB (556965-8361) develops ProTrans™, a pharmaceutical candidate consisting of stem cells, primarily for the treatment of diabetes and for immunosuppression in renal transplantation. ProTrans™ consists of selected stem cells extracted from umbilical cord tissue by NextCell Pharma’s proprietary method. NextCell Pharma also manages Cellaviva, the first stem cell bank in Sweden for family saving of stem cells from umbilical cord blood and umbilical cord tissue.
About Diamyd Medical
Diamyd Medical is dedicated to finding a cure for diabetes and other serious inflammatory diseases through pharmaceutical development and investments in stem cell and medical technology.
Diamyd Medical develops the diabetes vaccine Diamyd®, an antigen-specific immunotherapy based on the exclusively licensed GAD-molecule. At this time six clinical studies are ongoing with Diamyd®. GABA constitutes alongside with the diabetes vaccine a key asset in Diamyd Medical and the Company uses its GABA in-licensed technology to develop a proprietary GABA drug product. Diamyd Medical is one of the major shareholders in the stem cell company NextCell Pharma AB. Diamyd Medical also has holdings in the medtech company Companion Medical, Inc., San Diego, USA and in the gene therapy company Periphagen, Inc., Pittsburgh, USA.
Diamyd Medical’s B-share is traded on Nasdaq Stockholm First North under the ticker DMYD B. FNCA Sweden AB is the Company’s Certified Adviser.
For further information, please contact:
Ulf Hannelius, President and CEO
Phone: +46 736 35 42 41. E-mail: email@example.com
For further information regarding NextCell Pharma’s private placement and planned public share issue, please contact NextCell Pharma’s financial advisor:
Phone: +46 (0) 40-615 14 10
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: firstname.lastname@example.org. Reg. no.: 556242-3797. Website: www.diamyd.com .
This information is information that Diamyd Medical AB is obliged to make public pursuant to the EU Market Abuse Regulation. This is an English translation of information that was submitted for publication, through the agency of the contact person set out above, at 08:30 CET on March 9, 2017.