Diamyd Medical divests U.S. gene therapy company

Diamyd Medical AB has entered into an agreement for the sale of the U.S. subsidiary, Diamyd, Inc., involved in drug development primarily relating to the NTDDS platform with applications in pain and neuropathy among others. The buyer, Periphagen Holdings, Inc., is owned by members of the management of Diamyd, Inc. The agreement is subject to approval of an Extraordinary General Meeting of Diamyd Medical. By reason of the divestment, Diamyd Medical will postpone its Year End Report to October 31, 2012.Under the agreement, in addition to the shares in Diamyd, Inc., Periphagen Holdings, Inc.