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Diamyd Updates Gene Therapy Program and Outlines Plans for Phase I Clinical Trial for Treatment of Cancer Pain
Date:8/27/2007

Pre-IND Meeting Scheduled For August 29, 2007

STOCKHOLM, Sweden, and PITTSBURGH, Aug. 27 /PRNewswire-FirstCall/ -- Diamyd Medical AB (http://www.omxgroup.com, ticker: DIAM B; http://www.otcqx.com, ticker DMYDY)Diamyd Medical announced today that NP2, the company's first drug candidate in its nerve targeting drug delivery system (NTDDS) gene therapy platform, will be the subject of a pre-investigational new drug (IND) meeting with the U.S. Food and Drug Administration on August 29, 2007. Pending a favorable review by the agency, Diamyd plans to file the NP2 IND application and initiate a Phase I clinical study later this year.

NP2, developed by the company's U.S. subsidiary, Diamyd, Inc., produces enkephalin locally in the targeted sensory neurons to block pain signals before they are transmitted through the spinal cord to the brain. This may significantly reduce or eliminate the need for systemic pain treatment and avoid associated side effects.

"We have made significant progress in advancing NP2, the first of several product candidates, towards the clinic in a timely and effective manner," said Michael Christini, President of Diamyd, Inc. "With NP2, we have laid the groundwork for the rapid development of additional drug candidates such as the NTDDS-GAD product to treat pain in diabetes. The ability to deliver and express gene products directly in neurons that project into the spinal cord is extremely innovative and provides Diamyd with numerous possibilities to treat pain and other peripheral nervous system diseases."

The proposed Phase I clinical trial will be conducted at the University of Michigan in Ann Arbor. Dr. David Fink, Professor and Chair of the Department of Neurology, at the University of Michigan will be the principle investigator. The trial will be designed as a dose-escalation study and is intended to test
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