Diamyd Medical has successfully completed its capital raising efforts, securing approximately SEK 267 million (approximately $25.5 million) before issue costs to advance its precision medicine approach for Type 1 Diabetes. The company announced an adjustment to its previously reported funding total, adding SEK 1.6 million due to a subscription application that was initially overlooked for administrative reasons.
The funding comes through a combination of a rights issue conducted in April 2025, an additional unit issue, and a directed issue completed on May 5, 2025. Following registration of these transactions, Diamyd Medical's share capital will amount to SEK 13,945,395.1198, comprised of 137,499,723 shares (3,503,120 A-shares and 133,996,603 B-shares).
FDA Fast Track Designation Accelerates Development Timeline
In a significant regulatory advancement, the U.S. Food and Drug Administration (FDA) has confirmed that Diamyd Medical's ongoing Phase III trial, DIAGNODE-3, meets the requirements for accelerated approval. This designation allows for an earlier readout of trial results, now expected in March 2026.
The DIAGNODE-3 trial is actively recruiting patients with recent-onset (Stage 3) Type 1 Diabetes across 60 clinical sites in eight European countries and the United States. The trial specifically targets individuals carrying the HLA DR3-DQ2 gene, which constitutes approximately 40% of Type 1 Diabetes patients in Europe and the US.
"The FDA's Fast Track Designation for Diamyd® represents a significant milestone in our development program," said Ulf Hannelius, President and CEO of Diamyd Medical. "This regulatory pathway could potentially bring our precision medicine approach to patients sooner than initially anticipated."
Diamyd®: A Precision Medicine Approach to Type 1 Diabetes
Diamyd® is an investigational antigen-specific immunomodulatory therapeutic designed to preserve endogenous insulin production. The treatment has shown particular efficacy in individuals carrying the HLA DR3-DQ2 genotype, as demonstrated in both a large-scale meta-analysis and the company's prospective European Phase IIb trial.
The therapy has received multiple regulatory designations from the FDA, including:
- Orphan Drug Designation for the treatment of Type 1 Diabetes
- Fast Track Designation for Stage 3 (clinically diagnosed symptomatic) Type 1 Diabetes
- Fast Track Designation for Stage 1 and 2 (pre-symptomatic) Type 1 Diabetes
The DIAGNODE-3 trial employs a novel administration method, injecting the therapeutic directly into a superficial lymph node. This approach, which can be performed in minutes, is designed to optimize treatment response by targeting the immune system more effectively.
Manufacturing Capabilities Expanding
To support the commercial potential of Diamyd®, the company is developing a biomanufacturing facility in Umeå, Sweden. This facility will produce recombinant GAD65 protein, the active ingredient in the Diamyd® immunotherapy.
The company's strategic investments extend beyond its core therapeutic program. Diamyd Medical maintains significant shareholdings in the stem cell company NextCell Pharma AB and the artificial intelligence company MainlyAI AB, diversifying its biotechnology portfolio.
Shareholder Support for Capital Raising
The recent capital raising efforts received strong support from existing shareholders and company leadership. Anders Essen-Möller, Chairman of the Board of Directors and founder, committed to subscribe for units corresponding to SEK 5 million, while his children indicated their intention to subscribe for approximately SEK 1.5 million.
Additional commitments came from CEO Ulf Hannelius and CFO Anna Styrud, who subscribed for their respective pro rata shares, corresponding to approximately SEK 0.7 million and SEK 0.3 million. Vice Chairman of the Board, Erik Nerpin, committed to subscribe for units corresponding to SEK 0.1 million.
In total, the rights issue was covered by subscription commitments and intentions equivalent to approximately SEK 17.5 million, representing about 8.4 percent of the total offering.
Market Position and Future Outlook
Diamyd Medical's B share is traded on Nasdaq First North Growth Market under the ticker DMYD B, with FNCA Sweden AB serving as the Company's Certified Adviser.
With its strengthened financial position and accelerated regulatory pathway, Diamyd Medical is well-positioned to advance its precision medicine approach for Type 1 Diabetes. The company's focus on a genetically defined patient population represents a targeted strategy in the competitive autoimmune disease therapeutic landscape.
The upcoming March 2026 readout of the Phase III DIAGNODE-3 trial will be a critical milestone in determining whether Diamyd® can deliver on its promise of preserving insulin production in newly diagnosed Type 1 Diabetes patients.
