Diamyd Medical’s former sister company secures new financing
Diamyd Medical holds shares in the US gene therapy company Periphagen Holdings, Inc. Periphagen has announced the successful completion of a financing transaction where a life science fund invests up to USD 16 million, of which USD 6.5 million has been closed.
“The money and expertise that the fund brings significantly increase the chances of successful development of Periphagen’s gene therapy platform,” says Peter Zerhouni, President and CEO of Diamyd Medical. “Diamyd Medical will benefit from that in several ways as, apart from being a shareholder, we have other financial interests in the company and the platform as well as certain rights to use Periphagen’s technology in diabetes.”
“We are very pleased to welcome the fund as an investor in Periphagen,” says Darren Wolfe, CEO and Co-founder of Periphagen. “The new investor support gives us the necessary resources to expand Periphagen as a clinical stage biopharmaceutical company and we deeply appreciate their confidence in our ability to efficiently develop new treatments to the benefit for patients with significant unmet medical need.”
Periphagen Holdings, Inc. bought the former Diamyd, Inc. in October 2012 including the rights to a gene therapy platform based on a Herpes Simplex Virus. As part of the purchase price Diamyd Medical received a 10 percent ownership share in Periphagen and a claim of USD 1 million with a 15 year duration. Furthermore, Diamyd Medical may receive up to USD 9 million in milestone payments if certain development results are achieved. In addition, Diamyd Medical will receive 10 percent of upfront payments and other payments Periphagen may receive from future partners, as well as royalties on future sales of drugs based on the gene therapy technology.
With the new financing transaction Diamyd Medical’s ownership share has decreased. Diamyd Medical’s other financial interests in Periphagen remain unchanged.
For further information, please contact:
Peter Zerhouni, President and CEO Diamyd Medical AB
Phone: +46 8 661 00 26. E-mail: press@diamyd.com
About Diamyd Medical
Diamyd Medical is a Swedish diabetes company. The Company’s primary development project consists of the GAD-based diabetes vaccine Diamyd®for the treatment and prevention of autoimmune diabetes. Two Swedish researcher-initiated Phase II studies with Diamyd®are ongoing. One study evaluates whether the diabetes vaccine can prevent type 1 diabetes in children who are at high risk of developing the disease, while the other study evaluates whether Diamyd®in combination with vitamin D and ibuprofen can preserve the body's own ability to regulate the blood sugar level in children and adolescents newly diagnosed with type 1 diabetes.
In May 2013 the Company concluded an exclusive licensing agreement with the University of California in Los Angeles (UCLA) relating to a patent portfolio for the therapeutic use of GABA (gamma-aminobutyric acid) and GABA receptor agonists for the treatment and prevention of type 1 and type 2 diabetes and other inflammation-related conditions, such as metabolic syndrome, rheumatoid arthritis and allergies.
Diamyd Medical also has holdings in the gene therapy company Periphagen Holdings, Inc. (US).
Diamyd Medical’s Series B share is traded on NASDAQ OMX First North under the ticker DMYD B. Remium Nordic AB is the Company’s Certified Adviser. Further information is available on the Company’s website: www.diamyd.com.
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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