"We will realize the plan to bring Diamyd^® to the market in the Nordic countries ourselves and have negotiated exclusivity for this region," says Elisabeth Lindner, President and CEO of Diamyd Medical. "The Nordic market is a prestige market for type 1 diabetes in that the Nordic countries have the highest incidence of the disease in the world."

During the report period Diamyd Medical could announce that the US FDA has granted Diamyd^® Orphan Drug Designation in the USA, which among other things qualifies Diamyd^® for seven years of market exclusivity, tax credits for clinical research and a waiver for certain FDA fees. Further, Diamyd has announced that the Company's US Phase III study, DiaPrevent, has enrolled one hundred study participants at 33 diabetes centers and that more sites will be added. Additionally Diamyd has received SEK 35 million through a direct placement.

After the end of the period, Diamyd signed an agreement with Ortho-McNeil-Janssen Pharmaceuticals, Inc. (OMJPI), a Johnson & Johnson company, to develop and commercialize the Diamyd^® diabetes therapy. OMJPI will make an upfront payment of USD 45 million, and under the terms of the agreement, Diamyd has the potential to receive additional development and sales milestone payments of up to USD 580 million, as well as tiered royalties on future sales.