Financial Statement 12/13

September 2012 – August 2013
Diamyd Medical AB (publ), former Diamyd Therapeutics AB
Fiscal year 2012/2013
Reporting period, June 1, 2013 – August 31, 2013

  · Net sales amounted to MSEK 0.1 (0)
  · Loss before tax amounted to MSEK -4.3 (-4.2)
  · Liquid assets amounted to MSEK 65.5 (22.0) as of August 31, 2013

Full year, September 1, 2012 – August 31, 2013

  · Net sales amounted to MSEK 0.1 (0.5)
  · Loss before tax amounted to MSEK -12.6 (-16.3)

Significant events during the reporting period
June 1, 2013 – August 31, 2013

  · Diamyd Medical’s rights issue was oversubscribed and raised
approximately MSEK 21
  · Diamyd Medical expanded its Scientific Advisory Board

Significant events after the reporting period

  · Major owner increased holdings in Diamyd Medical

CEO Comments

After an intense period in May and June with the listing on First North, and an
oversubscribed rights issue, Diamyd Medical’s focus has shifted to business
development activities and the production of a new batch of the diabetes vaccine
Diamyd®. Our current inventory needs to be renewed and the manufacturing process
has evolved since we last made a batch for clinical use.

Having sufficient inventory of fresh diabetes vaccine available is vital for our
strategy of collaborating with externally funded research groups to establish
additional clinical pilot studies with Diamyd®. Both in combination with other
drugs to achieve a strong beta cell preserving effect, and by treating earlier
in the disease process to try to prevent the onset of type 1 diabetes and other
autoimmune diabetes altogether.

Manufacturing of the new batch was carried out late September in the Netherlands
and was completed without problems. Pharmaceutical manufacturing is subject to a
strict regulatory framework called Good Manufacturing Practice (GMP), which sets
high quality standards. Currently a wide range of tests are performed on the
product to confirm that it meets all manufacturing specifications. We expect
that the new vials with the diabetes vaccine Diamyd®will be released for use in
clinical trials later this autumn.

We work in parallel with several academic research groups who have ideas for new
studies with the diabetes vaccine. The advantage of this approach is that we can
test more hypotheses than if we were to conduct and fund all studies with the
diabetes vaccine ourselves. The downside compared to company-funded studies, is
that it takes more time since we are dependent upon the scientists actively
working on the projects and seeking and receiving grants, at the same time as
they are busy with their regular work at their respective hospitals.

Two researcher-initiated studies with Diamyd®are already in progress. The study
DIABGAD-1 evaluates treatment with the diabetes vaccine in combination with the
anti-inflammatory drug ibuprofen and relatively high doses of vitamin D. The
study was launched earlier this year and more than a third of the planned 60
patients have been enrolled. Also, since 2009 a researcher-initiated study is in
progress with children at high risk of developing type 1 diabetes, with the aim
to prevent the onset of the disease.

Regarding business development, we are working hard to evaluate new
opportunities for collaboration and deals in the field of diabetes. We have
participated in several international diabetes meetings and will also be
represented at the annual ISPAD Meeting (International Society for Pediatric and
Adolescent Diabetes) next week, which this year will take place in Gothenburg.
Also next week, at the Nordic Life Science Days in Stockholm, we will present
Diamyd Medical to potential investors and partners from around the world.

Stockholm, October 10, 2013

Peter Zerhouni
President and CEO Diamyd Medical AB (publ)

Significant events during the reporting period
June 1, 2013 – August 31, 2013

Diamyd Medical’s rights issue was oversubscribed and raised approximately MSEK
21
Diamyd Medical’s share issue with preferential rights for the Company’s
shareholders was oversubscribed. The Company received proceeds of MSEK 20.7
before issue expenses.

Diamyd Medical expanded its Scientific Advisory Board
The Company’s Scientific and Medical Advisory Board was expanded with three
internationally leading experts on GABA and diabetes: Dr. Bryndis Birnir at
Uppsala University, Dr. Brooke Ligon and Dr. Qinghua Wang at Toronto University.

Significant events after the reporting period
Major owner increased holdings in Diamyd Medical
Bertil Lindkvist increased his holdings in Diamyd Medical. Bertil Lindkvist’s
holdings in Diamyd Medical amounted to 2,979,286 B-shares as of September 24,
2013, which corresponds to 15.1 percent of the capital and 10.5 percent of the
votes.

*** To read the complete report, please see attached pdf, or visit
www.diamyd.com ***
For more information please contact:
Peter Zerhouni, President and CEO Diamyd Medical AB (publ). Phone: +46 8 661 00
26
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
Note: This document has been prepared in both Swedish and English. The Swedish
version shall govern in case of differences between the two documents. The
document contains certain statements about the Company’s operating environment
and future performance. These statements should only be regarded as reflective