Diamyd Medical expands activities to both type 1 and type 2 diabetes as well as rheumatoid arthritis with proprietary GABA drug

Diamyd Medical (Nasdaq Stockholm First North, Ticker: DMYD B) today announced
that the Company will expand its activities to include both type 1 and type 2
diabetes as well as rheumatoid arthritis, which is planned to be pursued through
the development of a proprietary GABA drug product.
GABA forms alongside the diabetes vaccine Diamyd® a key asset of Diamyd Medical.
To further develop GABA’s potential, Diamyd Medical expands, in dialog with
leading experts in the field, its activities towards both type 1 and type 2
diabetes as well as rheumatoid arthritis. Results from previously published
preclinical studies conducted at University of California in Los Angeles (UCLA)
show beneficial therapeutic effects of GABA in the diseases 1,2. These results
are supported by a number of other publications showing GABA's beneficial effect
on the pancreas and its immunomodulatory effect.

“The expansion to both type 1 and type 2 diabetes as well as rheumatoid
arthritis, with GABA as platform, is natural and has clear synergies on both the
development side and licensing side,” says Ulf Hannelius, President and CEO of
Diamyd Medical. “Diabetes and anti-rheumatic drugs are two of the largest
pharmaceutical markets in the world. Existing treatments are not optimal,
leaving considerable room for improvement. We have advanced furthest with our
diabetes vaccine Diamyd®, where operations are proceeding according to plan. Six
studies within autoimmune diabetes are ongoing and the first half year of 2017
is exciting when we, as previously announced, are awaiting results from three
studies; DIABGAD, DiAPREV-IT 1 and 6-months results from EDCR-IIa.”

Since May 2013, when Diamyd Medical signed an exclusive license agreement with
UCLA regarding a patent portfolio on the therapeutic use of GABA, the Company
has further developed the value with activities including, as previously
announced, the initiation of a clinical study with GABA and Diamyd® in
cooperation with the University of Alabama, USA.

By producing its own GABA, Diamyd Medical will have full control of product
development. The first development stage of a GABA drug product will, with a
preferred provider for GMP production and with preclinical studies, determine
formulation technology and dosage. At a later stage the production can be scaled
up in alignment with the clinical development strategy including formulation,
administration and dosage of the drug.

Selected references

 1. Oral GABA treatment downregulates inflammatory responses in a mouse model of
rheumatoid arthritis. Tian J, Yong J, Dang H, Kaufman DL. Autoimmunity. 2011
Sep;44(6):465-70. doi: 10.3109/08916934.2011.571223. Epub 2011 May 23.
 2. Oral treatment with γ-aminobutyric acid improves glucose tolerance and
insulin sensitivity by inhibiting inflammation in high fat diet-fed mice. Tian
J, Dang HN, Yong J, Chui WS, Dizon MP, Yaw CK, Kaufman DL. PLoS One.
2011;6(9):e25338. doi: 10.1371/journal.pone.0025338. Epub 2011 Sep 22.

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.

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 08.30
CET on September 9, 2016.