Diamyd-licensed technology enhances transplanted human beta cell mass in preclinical model of type 1 diabetes

Diamyd Medical (Nasdaq Stockholm First North, Ticker: DMYD B) informs that a new
scientific paper in the December issue of the journal Diabetes shows that GABA
enhances transplanted human beta cell mass in the NOD mouse model of type 1
diabetes. Diamyd Medical licenses exclusive rights from the University of
California for the therapeutic use of GABA for the treatment of diabetes and
other inflammation-related conditions.
The paper shows that GABA (gamma amino butyric acid) enhances beta cell mass in
the NOD mouse model of type 1 diabetes following transplantation of human
pancreatic insulin producing cells by increasing beta cell proliferation, while
decreasing apoptosis. This was associated with increased circulating human
insulin and reduced glucagon levels. GABA administration also lowered blood
glucose levels and improved glucose excursion rates.

The authors state in the paper that their findings suggest that GABA regulates
human beta cell mass and may be beneficial for the treatment of diabetes or
improvement of islet transplantation.

The paper “GABA Promotes Human beta cell Proliferation and Modulates Glucose
Homeostasis” is published in the scientific journal Diabetes, volume 63,
December 2014 and the abstract is available at
http://www.ncbi.nlm.nih.gov/pubmed/25008178

About GABA
GABA stands for gamma amino butyric acid and is produced in the body as
glutamate is decarboxylased by the GAD enzyme. GABA is an important suppressive
and “calming” neurotransmitter. Pre-clinical findings support the use of GABA as
a synergistic component for treatment of autoimmune diabetes and beta cell
regeneration as well as for controlling inflammation, such as in rheumatoid
arthritis, metabolic syndrome and type 2 diabetes. Diamyd Medical has licensed
Intellectual Proprietary Rights from University of California for these
applications.

An investigator initiated study combining the Diamyd® diabetes vaccine and GABA
in 75 children with new-onset type 1 diabetes was recently approved by the FDA.
The aim of the study is to test whether the combination treatment can preserve
the body’s residual capacity to produce insulin. The study is taking place in
the US led by Professor Kenneth McCormick at the University of Alabama at
Birmingham and is in the start-up phase.

About type 1 diabetes
Type 1 diabetes is an autoimmune disease where the immune system attacks the
patients’ own insulin-producing beta cells. By analyzing markers in the blood,
it is possible to identify persons in whom this autoimmune process is ongoing,
although has not yet caused clinical symptoms of diabetes. When clinical
symptoms present, patients must be treated daily, for the rest of their lives,
with insulin to sustain life. Finding a cure is of major importance for the
world’s healthcare systems and the well-being of patients. The annual market for
an easy-to-use, successful therapeutic is estimated at several billions of
dollars.

About Diamyd Medical
Diamyd Medical is dedicated to fighting type 1 diabetes and to working toward a
cure for the disease. Diamyd Medical’s projects include development of
combination regimens with the GAD-based diabetes vaccine Diamyd® for arresting
the successive destruction of insulin-producing beta cells. Diamyd Medical
licenses exclusive intellectual rights for the GAD molecule from the University
of California. The company also has an exclusive license from the University of
California for therapeutic use of GABA for the treatment of diabetes and other
inflammation-related conditions, including metabolic syndrome and rheumatoid
arthritis.

Diamyd Medical owns 46% of the stem cell company Cellaviva AB, which is
establishing a Swedish commercial bank for private family saving of stem cells
in umbilical cord blood and other sources of stem cells. Stem cells are expected
to be used in Personalized Regenerative Medicine (PRM), for example, to restore
beta cell mass in diabetes patients where autoimmunity has been arrested. Diamyd
Medical also has a 10% shareholding in the medical technology company Companion
Medical, Inc., based in San Diego, in the US, and a minor shareholding and other
financial interests in the US gene therapy company Periphagen Holdings, Inc.

Remium Nordic AB is the Company’s Certified Adviser.
For further information, please contact:
Anders Essen-Möller, Chairman Diamyd Medical AB
Phone: +46 70 55 10 679. E-mail: anders.essen-moller@diamyd.com
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. Website: www.diamyd.com.