STOCKHOLM, Sweden, Oct. 28, 2005 (PRIMEZONE) -- Diamyd Medical AB (OMX:DIAMB), today announced that it has accepted a proposal from The Bank of New York to establish a Level 1 American Depository Receipt (ADR) program. The establishment of this ADR program will facilitate the purchase of Diamyd Medical shares by United States investors.
This initiative is a logical extension of the company's focus on its international development and an appropriate vehicle to leverage the high awareness of, and regard for, diabetes and CNS-related diseases research generally, and the growing international interest in Diamyd Medical's product development plans specifically.
Anders Essen-Moller, president and chief executive officer, stated, "We are very excited to take this initial step in bringing the Diamyd Medical story to international investors. A vital part of our long-term strategy to enhance shareholder value is to improve liquidity and broaden and diversify our shareholder base by enhancing the company's visibility in the world's largest capital market. The ADR program will help us capitalize on landmark achievements by making investing easier for existing and potential U.S. investors."
About ADRs
ADRs are commonly used to facilitate the holding and trading by U.S. investors securities in foreign companies not listed in the United States. An ADR is created when a broker purchases a company's shares on the home stock market and delivers those to the depository's local custodian bank, which then instructs the depositary bank, The Bank of New York, to issue depository receipts. Depository receipts may trade freely, just like any other security, in the over-the-counter (OTC) market.
About Diamyd Medical
Diamyd Medical is registered on the Stockholm Stock Exchange O List (OMX:DIAM B) and conducts therapeutic development based on the GAD65 (glutamic acid decarboxylase) technology platform. GAD65 is an enzyme that converts the excitatory neurotransmittor glutamate to the inhibitory transmittor GABA. In this context, GAD65 may have an important role in CNS-related disease states. GAD65 is also a target pancreatic beta cell autoantigen in autoimmune diabetes, such autoimmunity leading to development of insulin dependence. Diamyd Medical's furthest developed project is Diamyd, which is currently employed in three ongoing clinical trials of both Type 2 and Type 1 diabetes.
Diamyd Medical AB (publ). Linnegatan 89 B, SE-115 23 Stockholm, Sweden. Tel: 08-661 00 26; fax: 08-661 63 68; or email: info@diamyd.com. Corp. ID: 556530-1420.
This information includes statements concerning historical, present and forward-looking items and is to the "best of knowledge" of the management of Diamyd Medical, and the actual status and results achieved by the company may differ materially from these statements. The company assumes no obligation to update these statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. The company's press releases, quarterly reports and annual reports ("information") are translations from the Swedish originals. No guarantees are made that the translation is free from errors.