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Medtech firm Diamyd dives 85% in Stockholm

Diamyd Medical: Diamyd Replaces CEO   • Swedish m-health firm Kiwok plans IPO

Shares in Diamyd Medical AB dived 85 percent on the Stockholm exchange Monday after the company said results from a European Phase III study did not meet the primary efficacy endpoint of preserving beta cell function, in newly diagnosed type 1 diabetes patients.

The setback means that 17 years of research and 500 million kronor in R&D expenditure might have gone up up in flames. 

"This is very, very bad news",  Peter Zerhouni, Acting President and CEO of Diamyd Medical, told business website di.se. "Of course we're extremely disappointed".

In midday trading the company’s share value had dived from 3.5 billion kronor ($540 million) to 591 million kronor.

"Although we had hoped for a better outcome of the European Phase III trial, we will now further analyze the study results together with data from other ongoing studies to better understand and determine the precise therapeutic impact of this approach as well as the best path forward for the program," Peter Zerhouni said in a statement.

The sudden departure of former President and CEO Elisabeth Linder have caused additional uncertainty in the market ahead of the impending phase III decision.


Last Updated (Monday, 09 May 2011 16:34)


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