Diamyd Shifts Away from Diabetes To Cut Costs

More A Sweet Life Aug 17, 2011, 11:58 am

Diamyd Medical announced it has shifted its focus from the development of the diabetes therapy Diamyd® to the the development of drug candidates for the treatment of chronic pain.

Earlier this year the company terminated both of its Phase III studieswith the diabetes therapy Diamyd® in Europe and the US because the therapy did not demonstrate sufficient efficacy.

Diamyd expects this move will substantially decrease the company’s costs since the Phase III program with Diamyd® accounted for approximately two thirds of the company’s total costs. As part of the cut Diamyd will lay off most of the employees in Sweden, who mainly worked on the Phase III studies with Diamyd® and in related areas. Diamyd estimates these changes will produce approximately $60 million in liquid assets at the end of the calendar year.The interest in Diamyd® and the active substance GAD65 is still high among diabetes researchers. GAD65 plays an important role in type 1 diabetes and continues to have potential to be used against the disease. Important discussions are ongoing within the research field about why the studies with Diamyd® did not meet the endpoints and how lessons learned from these and other studies in type 1 diabetes can guide the future development of GAD65 towards a diabetes drug. One approach being tested is to treat earlier in the disease process, before the onset of the disease. An externally funded and researcher-initiated Phase II study with Diamyd … Read the Rest

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  • Description: Diamyd Medical announced it has shifted its focus from the development of the diabetes therapy Diamyd to the the development of drug candidates for the treatment of chronic pain.