Today marked the last day of trading for Diamyd Medical AB's warrants of series TO 3, initially issued in 2023 as part of a rights issue. The warrants, which allowed holders to subscribe for new shares in the company, had an exercise period that commenced on September 2, 2024, and concluded on September 30, 2024. Two warrants entitled the holder to purchase one new share at a subscription price of SEK 11.00 per share.
Several key figures within Diamyd Medical, including Chairman Anders Essen-Möller and CEO Ulf Hannelius, announced their intention to exercise their warrants, amounting to approximately SEK 5.1 million. This move underscores confidence in the company's direction and future prospects.
Financial Strategy and Clinical Milestones
"Outstanding warrants are a key element of our financial strategy," stated Ulf Hannelius, CEO of Diamyd Medical. The company also reported the receipt of SEK 17.5 million from existing collaborations and the previous sale of Companion Medical shares. These funds are earmarked to bolster Diamyd Medical's efforts to expedite the approval process for its Type 1 Diabetes precision medicine.
A significant development on the horizon is the anticipated earlier readout from the ongoing DIAGNODE-3 Phase 3 trial, now expected around March 2026. This trial is pivotal for the company's precision medicine approach to Type 1 Diabetes.
DIAGNODE-3 Trial Details
The DIAGNODE-3 trial is a confirmatory Phase III study actively recruiting patients with recent-onset (Stage 3) Type 1 Diabetes across eight European countries and the United States. The trial assesses the efficacy of Diamyd®, an antigen-specific immunomodulatory therapeutic, in preserving endogenous insulin production. Diamyd® has been granted Orphan Drug Designation in the U.S. and Fast Track Designation by the U.S. FDA for the treatment of Stage 1, 2, and 3 Type 1 Diabetes. Previous results have indicated significant benefits in a genetically predefined patient group, as demonstrated in a meta-analysis and a Phase IIb trial where Diamyd® was administered directly into a superficial lymph node in children and young adults with recently diagnosed Type 1 Diabetes.
About Diamyd Medical
Diamyd Medical is focused on developing precision medicine therapies for the prevention and treatment of Type 1 Diabetes and Latent Autoimmune Diabetes in Adults (LADA). The company's lead candidate, Diamyd®, is designed to preserve endogenous insulin production. Diamyd Medical is also developing Remygen®, a GABA-based investigational drug, for metabolic diseases. Additionally, Diamyd Medical holds significant shares in NextCell Pharma AB and MainlyAI AB.
