Diamyd Medical provides update on clinical studies with Diamyd®

Diamyd Medical (Nasdaq First North, Stockholm, DMYD B) participates in six
clinical studies with the diabetes vaccine Diamyd® for the treatment and
prevention of type 1 diabetes. The Company announced today that yet another of
these, the phase II study EDCR IIa now is fully enrolled and that results from a
first evaluation after 6 months are estimated to be presented during the second
quarter of 2017. The Company also announced that results from the placebo
-controlled prevention study DiAPREV-IT 1 are expected to be presented during
the first quarter of 2017.
All 20 patients are now included in the Phase II study EDCR IIa (Etanercept
-Diamyd®-Combination-Regimen), which runs at eight pediatric diabetes clinics in
Sweden. The study is an open label clinical pilot study in children and
adolescents aged 8 to 18 years with newly diagnosed type 1 diabetes where the
diabetes vaccine Diamyd® is combined with two other already approved substances,
etanercept and vitamin D. The study will last 30 months after all patients have
been included. The purpose of the study is to evaluate the safety of the
combination treatment and its effects on the immune system in children and
adolescents with recent-onset type 1 diabetes. A first evaluation will be
conducted after 6 months with a focus on immunological markers, the 6-month
analysis will be able to start at the end of the first quarter of 2017 and the
results thus be presented in the second quarter of 2017. The study is led by
Professor Johnny Ludvigsson at Linköping University, principal investigator and
sponsor of the study.

The study is part of a series of combination studies with the diabetes vaccine
Diamyd® to enhance the efficacy (16%, p=0.1) previously achieved in a European
Phase III study of 334 newly diagnosed type 1 diabetes patients. The Phase II
study EDCR IIa is the first of its kind where the diabetes vaccine Diamyd® is
combined with etanercept and vitamin D, and tested against the complex
autoimmune process that causes type 1 diabetes.

Etanercept is a so-called TNF-alpha inhibitor used in rheumatic diseases and is
approved among other things, to treat children with juvenile idiopathic
arthritis (JIA). Data from previous clinical studies indicate that Diamyd®
activates components that down-regulate inflammation and certain components that
can activate the immune system. By combining the diabetes vaccine with
etanercept, the inflammatory response is reduced and the diabetes vaccine
tolerance inducing effect thus have a greater impact. Vitamin D is intended to
further down-regulate the immune system's inflammatory components in order to
strengthen the regulatory effect of the diabetes vaccine. Both vitamin D and
etanercept are also considered to have a direct positive effect on the beta
cells.

In the placebo-controlled study DiAPREV IT-1, the last patient is expected to
make its last visit in late 2016, where after the study results will be
processed and analyzed before the results can be presented in the first quarter
of 2017.

Ongoing, also fully enrolled, is the placebo-controlled study DIABGAD in which
results are expected in the first quarter of 2017. Not yet fully enrolled
studies are the placebo-controlled GABA/Diamyd® study, the open label study
DIAGNODE-1 and the placebo-controlled study DiAPREV-IT 2.

About Diamyd® and combination trials

Type 1 diabetes is a devastating disease which requires daily treatment with
insulin to sustain life. The importance of finding a cure should not be
underestimated. The diabetes vaccine Diamyd® has been used in clinical studies
with more than 1,000 patients and has shown a good safety profile. In a European
Phase III trial Diamyd® showed good clinical effect in several subgroups, and a
limited overall 16% efficacy (p=0.10) in preserving endogenous insulin
secretion. Subsequent development is focused on combination trials to enhance
efficacy. Diamyd® is easy to administer in any clinical setting. The potential
annual market is estimated to several billion dollars per year.

Six researcher initiated clinical trials are ongoing combining Diamyd® with
various other immunomodulatory compounds; etanercept, ibuprofen, vitamin D and
GABA.

  · DIABGAD-1 – COMBINING DIAMYD® WITH IBUPROFEN AND VITAMIN D

A placebo-controlled trial, where Diamyd® is being tested in combination with
ibuprofen and vitamin D. The trial comprises a total of 64 patients between the
ages of 10 and 18, recently diagnosed with type 1 diabetes, and will continue
for a total of 30 months. The aim of the combination treatment is to preserve
the body’s own capacity to produce insulin. The trial runs at nine clinics in
Sweden and is led by Professor Johnny Ludvigsson at Linköping University,
Sweden. 30 month results from the trial are expected during the first quarter of
2017.

  · DIAGNODE-1 –DIAMYD® IN LYMPH GLANDS IN COMBINATION WITH VITAMIN D

An open label trial, where Diamyd® is administered directly into lymph nodes in
combination with treatment with vitamin D. The trial comprises nine patients
between the ages of 12 and 30 newly diagnosed with type 1 diabetes, and will
continue for a total of 30 months. The aim of the trial is to evaluate the
safety of the combination treatment and the effect on the immune system and the
patients’ insulin producing capacity. The trial is led by Professor Johnny
Ludvigsson at Linköping University, Sweden. The first patient was included in
the trial in February 2015.

  · GABA/DIAMYD® – COMBINING DIAMYD® WITH GABA

A placebo-controlled trial, where Diamyd® is being tested in combination with
GABA. The trial comprises 75 patients between the ages of 4 and 18 recently
diagnosed with type 1 diabetes, and will continue for a total of 12 months. The
aim of the combination treatment is to preserve the body’s residual capacity to
produce insulin. The trial is led by Dr. Alexandra Martin at the University of
Alabama at Birmingham, USA. The first patient was included in the trial in March
2015.

  · EDCR IIa – COMBINING DIAMYD® WITH ETANERCEPT AND VITAMIN D

An open label trial, where Diamyd® is combined with etanercept and vitamin D.
The trial comprises 20 patients between the ages of 8 and 18 who have been newly
diagnosed with type 1 diabetes, and will continue for a total of 30 months. The
aim of the trial is to evaluate the safety of the combination treatment and the
effect on the immune system and the patients’ insulin producing capacity. The
trial is led by Professor Johnny Ludvigsson at Linköping University, Sweden. All
patients were included in September 2016 and 6 month results are expected during
the second quarter of 2017.

  · DiAPREV-IT 1– DIAMYD®

A placebo-controlled trial, where Diamyd® is being tested in children at high
risk of developing type 1 diabetes, meaning that they have been found to have an
ongoing autoimmune process but do not yet have any clinical symptoms of
diabetes. A total of 50 participants from the age of four have been enrolled in
the trial, which will last for five years. The aim of the trial is to evaluate
whether Diamyd® can delay or prevent the participants from presenting with type
1 diabetes. The trial is led by Dr. Helena Elding Larsson at Lund University,
Sweden. Five year results are expected during the first quarter of 2017.

  · DiAPREV-IT 2 – COMBINING DIAMYD® WITH VITAMIN D

A placebo-controlled trial, where Diamyd® is being tested in combination with
vitamin D in children at high risk of developing type 1 diabetes, meaning that
they have been found to have an ongoing autoimmune process but do not yet have
any clinical symptoms of diabetes. A total of 80 participants between the ages
of 4 and 18 will be enrolled in the trial, which will last for five years. The
aim of the trial is to evaluate whether Diamyd® can delay or prevent the
participants from presenting with type 1 diabetes. The trial is led by Dr.
Helena Elding Larsson at Lund University, Sweden. The first patient was included
in March 2015.

About Diamyd Medical
Diamyd Medical is dedicated to finding a cure for autoimmune diabetes through
pharmaceutical development and investments in stem cell and medical technology.

Diamyd Medical develops the diabetes vaccine Diamyd®, an Antigen Based Therapy
(ABT) based on the exclusively licensed GAD-molecule. The Company’s licensed
technologies for GABA and Gliadin have also potential to become key pieces of
the puzzle of a future solution to prevent, treat or cure autoimmune diabetes,
and also certain inflammatory diseases. At this time six clinical studies are
ongoing with Diamyd®. Diamyd Medical is one of the major shareholders in the
stem cell company Cellaviva AB. Stem cells can be expected to be used in
Personalized Regenerative Medicine (PRM), for example for restoration of beta
cell mass in diabetes patients where the autoimmune component of the disease has
been arrested. Diamyd Medical also has holdings in the medtech company Companion
Medical, Inc., San Diego, USA and in the gene therapy company Periphagen, Inc.,
Pittsburgh, USA.

Diamyd Medical’s B-share is traded on Nasdaq Stockholm First North under the
ticker DMYD B. Remium Nordic AB is the Company’s Certified Adviser.
For further information, please contact:
Ulf Hannelius, President and CEO
Phone: +46 736 35 42 41. E-mail: ulf.hannelius@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.

This information is information that Diamyd Medical AB is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact person set out above, at 12.30
CET on September 7, 2016.