Annual Meeting of Shareholders, December 11, 2009. At the Annual Meeting of Shareholders, Diamyd Medical's President and CEO Elisabeth Lindner gave a retrospective view of and summarized the important events during and after the past fiscal year. The Company's income statement and balance sheet were adopted, and the board and CEO were discharged from liability for the 2008/2009 fiscal year. Anders Essen-M?¶ller was reelected as Chairman of the Board, and Lars Jonsson, Sam Lindgren and Henrik Bonde were reelected to the Board. Maria-Teresa Essen-M?¶ller and G?¶ran Pettersson were elected as new Board members. The annual meeting approved the Board's proposed guidelines for compensation and terms of employment for the CEO and other key executives. The meeting approved the Board's proposal to amendments to the Articles of Incorporation concerning an execution of a 2:1 division of shares (i.e. a split), meaning that each share is divided into two shares, and that the summons to the shareholders' meeting is adjusted to the new regulations expected to come into force in 2010. In addition, the meeting approved the Board's proposal that the provisions concerning prior application to and right to attend shareholders' meeting are adjusted to the Companies Act. The meeting mandated the Board to decide on new share issues of a maximum total of 10 percent of the number of shares on one or more occasions before the next Annual General Meeting. In addition, the meeting approved the Board's proposal to institute an employee option program.
Diamyd announced that the Company's partnership negotiations are at an advanced stage. Diamyd Medical announced that its previously announced partnership negotiations on the out-licensing of marketing rights for the Diamyd?® portfolio were at an advanced stage. Business negotiations of this type entail a large number of issues and complex relationships, so the Company cannot forecast when an agreement may be reached.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
Fund invested 35 MSEK in Diamyd. Diamyd Medical accepted an offer from an investment fund managed from New York by a Swedish-American team to issue 291,667 new B shares in a direct placement at 120 SEK per share. The issue price corresponded to the average market price of the past 30 trading days. Total proceeds for Diamyd amounted to 35 MSEK. The new shares represent 1.0 % of the capital and 0.7 % of the votes. The Board of Diamyd decided on the new issue based on the authorization given by the Annual General Meeting on December 11, 2009.
Diamyd granted Orphan Drug Designation in the US. The FDA has granted Orphan Drug Designation of Diamyd Medical's lead drug candidate Diamyd?® in the USA. The Orphan Drug Designation is granted for rhGAD65, the active ingredient of Diamyd?®, for the treatment of type 1 diabetes with residual beta cell function. Orphan drugs qualify for seven years of market exclusivity from the date of US marketing approval, tax credits for clinical research and a waiver for FDA user fees.
Diamyd announced that the Company's US Phase III study is well under way. Diamyd Medical's ongoing US Phase III study was announced to have included one hundred study participants at 33 diabetes centers in the USA and more sites will be added. The global Phase III program with the Company's lead drug candidate Diamyd?® has thereby enrolled more than 430 children newly diagnosed with type 1 diabetes in Europe and the USA.
Liquidity provider agreement for the Diamyd share was terminated. Due to increased turnover in Diamyd Medical's B share, the Company's liquidity provider agreement with Mangold Fondkommission AB expired on March 5, 2010. A new liquidity provider has not been appointed.
SOURCE Diamyd Medical AB
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