Wed, 07 Oct, 2020, 08:15 – English – Year-End Report 19/20

On October 7, 2020 Diamyd Medical AB (publ), reported that Fiscal year 2019/2020 (Press release, Diamyd Medical, OCT 7, 2020, View Source;ClipID=3792493 [SID1234568178])

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Significant effect of Diamyd demonstrated in a large predefined patient group, covering about 40-50 percent of all type 1 diabetes patients

Figures in parentheses relate to the corresponding period previous financial year.

September 1, 2019 – August 31, 2020

Net result: MSEK 9.7 (-36.6), whereof fourth quarter MSEK -13.5 (-9.8). The increase compared to previous year is a one-off effect due to a payment of corresponding MSEK 48.0 from the previous GAD65 manufacturer as support for transition of the manufacturing process.
Result per share: SEK 0.1 (-0.5), fourth quarter SEK -0.2 (-0.1)
Cash flow from operating activities: MSEK 16.2 (-39.2), fourth quarter: MSEK -7.9 (-10.6)
Cash and cash equivalents at August 31, 2020: MSEK 68.4 (56.7). After the reporting period, MUSD 13.9 corresponding to MSEK 120 was received from divestment of shares in Companion Medical.
Significant events fourth quarter, June 1, 2020–August 31, 2020

A Remygen clinical trial was expanded to evaluate prevention of hypoglycaemia
Companion Medical Inc., in which Diamyd Medical is a shareholder, was announced to be acquired by Medtronic plc
Results highlighting efficacy of the diabetes vaccine Diamyd in genetically defined groups of type 1 diabetes patients were published in the scientific journal Diabetologia
Significant events after the reporting period

Diamyd Medical received USD 13.9 million after divestment in Companion Medical
Phase IIb topline results demonstrated a significant treatment effect of Diamyd in a predefined genetic patient group covering about 40-50% of all type 1 diabetes patients
Analyses of prevention trials and intralymphatic pilot trial with the diabetes vaccine Diamyd supported a positive efficacy trend in genetically defined groups of type 1 diabetes patients

Comments by CEO Ulf Hannelius
On September 14 we had the pleasure to announce the topline results from DIAGNODE-2, the European multicenter Phase IIb trial in 109 individuals recently diagnosed with type 1 diabetes. The results show, in line with comprehensive insights from previous trials and scientific publications, that the diabetes vaccine Diamyd (GAD-alum) has a positive and significant disease-modifying effect on the preservation of endogenous insulin production compared to placebo in a genetically predefined patient group. The focus forward into Phase III and beyond is aligned with genetics-based Precision Medicine – targeting the right individual with the right treatment at the right time.

Specifically and importantly, the topline results from DIAGNODE-2 make it clear that to receive a significant treatment benefit with Diamyd one should target individuals with HLA-type DR3-DQ2. Equally, there seems to be no benefit in individuals that do not present with this HLA type. These results are in line with the large scale meta study that we first announced in December 2019 and later were published this August in Diabetologia. That study showed that based on data from more than 500 patients from three placebo-controlled trials, the HLA-type significantly influences the effect of Diamyd and a positive effect is seen in individuals carrying the specific HLA type DR3-DQ2.

The notion of targeting individuals with HLA DR3-DQ2 is further supported by a combined analysis of two investigator-initiated prevention trials, DiaPrevIT-1 and DiaPrevIT-2, that we press released in August this year. While the individual trials did not support a benefit of Diamyd to prevent or prolong time to diagnosis in healthy at-risk children, the combined analysis showed a clear trend that the preventive benefit of Diamyd is seen in individuals that are positive for HLA DR3-DQ2. We also now know that the three individuals who all received a significant benefit following a fourth intralymphatic booster injection in the pilot trial DIAGNODE-1 were HLA DR3-DQ2 positive.

Furthermore, these results make sense from a scientific perspective. HLA DR3-DQ2 has previously been associated with autoimmunity against GAD, the active component in Diamyd. This is significant as the HLA region codes for the molecules that bind and present antigens to antigen reactive immune cells, a central mechanism regulating immunity that now is shown to be susceptible for immunomodulation and the target for therapeutic antigen-specific vaccines like Diamyd.

It should also be emphasized that despite the COVID-19 pandemic, DIAGNODE-2 has not met with any operational disruptions, which is a true testament to the safety and convenience of the treatment as well as to the competence and engagement of the clinics and collaborators involved in the trial. A safe, convenient, and effective disease- modifying treatment is imperative to reach therapeutic and commercial success in the type 1 diabetes field.

Going forward, the detailed results from DIAGNODE-2 will be published in a scientific journal and we are accelerating our design efforts for a pivotal Phase III trial. This trial will incorporate all the knowledge around Diamyd and especially the HLA aspect and the administration route, and we are planning interactions with the FDA to align the trial design and evaluate potential expedited regulatory pathways for Diamyd.

To summarize, it has been a truly pivotal year for Diamyd Medical.

Stockholm, October 7, 2020
Ulf Hannelius, President and CEO

Significant events during the fourth quarter

June 1, 2020 – August 31, 2020

Clinical trial with Remygen was expanded to evaluate prevention of hypoglycaemia
The Swedish Medical Products Agency approved an amendment to ReGenerate-1 to investigate Remygen’s preventive effects on hypoglycaemia (severely reduced blood sugar level) in individuals with long-term type 1 diabetes.

Medtronic announced plans to acquire Companion Medical
Companion Medical, Inc. of which Diamyd Medical is a shareholder, and Medtronic plc, jointly announced the acquisition of Companion Medical by Medtronic.

Results published highlighting efficacy of the diabetes vaccine Diamyd in genetically defined groups of type 1 diabetes patients
Diabetologia (the journal of the European Association for the Study of Diabetes EASD) published results from a meta study that demonstrates a highly significant and clinically relevant effect of Diamyd Medical’s lead drug candidate Diamyd (GAD-alum) on preserving endogenous insulin production in genetically defined groups of type 1 diabetes patients. The meta study, first reported in December 2019, comprises more than 500 patients from three placebo controlled randomized clinical trials conducted in Europe and the USA assessing the therapeutic diabetes vaccine Diamyd. The publication is co-authored by Dr. Ulf Hannelius, Diamyd Medical, Professor Craig Beam, Western Michigan University and Professor Johnny Ludvigsson, Linköping University.

Significant events after the reporting period

Diamyd Medical received USD 13.9 million in connection with divestment in Companion Medical
In connection with the previously announced acquisition of Companion Medical, Inc. by Medtronic plc., Diamyd Medical received approximately USD 13.9 million, corresponding to SEK 120 million. Depending on achievement of certain future milestones, some additional payments may be possible, and will then be communicated if they occur.

Phase IIb topline results demonstrated a significant treatment effect of Diamyd in a predefined genetic patient group covering about 40-50% of all type 1 diabetes patients
Diamyd Medical announced the topline results from the placebo-controlled Phase IIb trial DIAGNODE-2, where the diabetes vaccine Diamyd (GAD-alum) was injected directly into a lymph node in individuals with recently diagnosed type 1 diabetes. In line with previous large-scale analysis of trials involving subcutaneous administration of Diamyd, the results, encompassing a total of 109 patients, showed a statistically significant effect in the predefined HLA (Human Leukocyte Antigen) group of trial participants. Specifically, this trial demonstrated a preservation of beta cell function at 15 months post-diagnosis, as measured by meal stimulated C-peptide. The primary endpoint, defined as meal stimulated C-peptide in the entire trial population was not met. Importantly, no related severe adverse events were observed in the trial. Based on these results, Diamyd Medical will pursue the HLA restricted responder group in an upcoming pivotal Phase III program.

Analyses of prevention trials and intralymphatic pilot trial with the diabetes vaccine Diamyd supported a positive trend in genetically defined groups of type 1 diabetes patients
A combined analysis of two previous clinical prevention trials, DiAPREV-IT 1 and 2 in healthy children at high risk of type 1 diabetes, as well as additional insights from the open label pilot trial DIAGNODE-1 in children and young adults newly diagnosed with type 1 diabetes, while not reaching statistical significance, were consistent with the recently published large-scale responder analysis which showed a highly significant and clinically relevant effect of the diabetes vaccine Diamyd in individuals positive for genotypes that include HLA DR3-DQ2.

Two drugs in clinical development

Diamyd and Remygen are drugs in clinical development that focus on the underlying disease mechanisms of diabetes; the dysfunction and loss of insulin-producing beta cells in the pancreas.

Diamyd is an antigen-specific immunomodulating diabetes vaccine for the treatment and prevention of autoimmune diabetes (type 1 diabetes and LADA, Latent Autoimmune Diabetes in Adults).

Clinical data indicate the potential of the diabetes vaccine Diamyd to halt or stop the autoimmune destruction of insulin-producing beta cells. The effect is achieved by antigen-specific reprogramming of immune cells by administration of low doses of Diamyd in superficial lymph nodes.

By maintaining the endogenous insulin production, Diamyd has the potential to make a significant difference in the daily life of patients as well significantly reduce the complications of type 1 diabetes.
Topline results from the Phase IIb trial DIAGNODE-2 has demonstrated a significant treatment effect of Diamyd in a predefined genetic patient group.

Remygen is an oral regenerative and immunomodulatory drug candidate for the treatment of autoimmune- and type 2 diabetes.By stimulating the growth of insulin-producing cells, Remygen has the potential to reverse the disease progression in autoimmune- and type 2 diabetes. Based on clinical data, Remygen has also the potential to protect against hypoglycemia by improving the hormonal response.

Remygen is now being investigated in a clinical Phase I/II trial (ReGenerate-1), where clinical efficacy is evaluated with the aim of optimizing the treatment regimen ahead of registration-based trials.

Ongoing clinical trials

Type 1 diabetes is a devastating disease which requires daily treatment with insulin to sustain life. The importance of finding a drug that improves the prospects for patients with diabetes is of utmost importance. The effect of intralymphatic administration of Diamyd, an antigen-specific immunotherapy aimed at stopping the immune system’s attack on insulin-producing beta cells in autoimmune diabetes, is evaluated in the Phase IIb trial DIAGNODE-2 and in the Phase II trial GADinLADA.

Remygen, which aims to stimulate the growth of beta cells in patients with diabetes, is evaluated in patients in a Phase I/II trial.

Trials with Diamyd in lymph node

DIAGNODE -2 – DIAMYD IN LYMPH NODES WITH ORAL SUPPLEMENTATION OF VITAMIN D
A follow-up double-blind randomized clinical trial where Diamyd is administered directly into a lymph node with oral supplements of vitamin D. The trial encompasses 109 patients from Sweden, the Czech Republic, Spain and the Netherlands, aged 12–24 years who have recently been diagnosed with type 1 diabetes. The 15-month results were presented on September 14, 2020, demonstrating a significant treatment effect of Diamyd in a predefined patient group. As of autumn 2019, patients who had not yet completed their last visit at 15 months were offered to participate in an extension of the trial for another 9 months. 53 patients agreed to participate in the extension trial and 15 of these patients have already been followed for 24 months. Results of this extended trial should be available in Q3 2021. Coordinating Investigator is Professor Johnny Ludvigsson at Linköping University, Sweden. Diamyd Medical is the Sponsor of the trial.

GADinLADA – DIAMYD IN LYMPH NODES WITH ORAL SUPPLEMENTATION OF VITAMIN D
An open-label, investigator initiated clinical trial where Diamyd is administered directly into a lymph node with oral supplements of vitamin D. The trial, conducted in Norway and in Sweden, encompasses 15 patients aged 30-70 years diagnosed with LADA (Latent Autoimmune Diabetes in Adults) and not yet on inulin treatment. The aim with the trial is to evaluate the safety of intralymphatic treatment with Diamyd in LADA patients and to continuously evaluate the immunological and clinical response during a one-year period. Sponsor of the trial is the Norwegian University of Science and Technology with Ingrid K Hals as sponsor representative.

Trial with Remygen (GABA)

REGENERATE-1 – REMYGEN /ALPRAZOLAM
An open-label, investigator initiated clinical trial with Remygen. The trial includes approximately 36 patients aged 18-50 who have had type 1 diabetes for more than five years with low to non-existing insulin production. Safety and initial efficacy results from the dose escalation section of the trial have paved the way to initiate the main trial and have also demonstrated a potential effect of Remygen to improve the hormonal response to hypoglycemia. The main trial evaluates whether the insulin-producing cells can be regenerated and if the hormonal response to hypoglycaemia can be improved using Remygen and the combination of Remygen and Alprazolam. The trial is led by Professor Per-Ola Carlsson at Uppsala University, Sponsor of the trial.

Manufacturing of GAD65 in Umeå
A new facility for vaccine manufacturing is being set up in Umeå, the Capital of Västerbotten County in Sweden, for the manufacture of recombinant GAD65, the active pharmaceutical ingredient in the therapeutic diabetes vaccine Diamyd currently in late-stage clinical development The 10 000 square feet site, comprising of clean rooms, laboratory facilities and office space, will facilitate full control, predictability and scalability of the manufacturing technology of the active ingredient.

Novalgen licenses mAbsolve’s QumAb™ technology to improve the safety of therapeutic antibodies

On October 6, 2020 NovalGen reported that a new generation of antibody variant developed by mAbsolve has been licensed to Novalgen for evaluation in their pipeline of therapeutic antibodies for treatment of cancer, leukaemias and cardiovascular disease (Press release, NovalGen, OCT 6, 2020, View Source [SID1234633769]).

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QumAb is a small variation to the natural antibody structure which eliminates the unwanted inflammatory responses often associated with antibody therapy. In some situations, these responses are beneficial, but often they lead to unpleasant, even dangerous side-effects.

Previous work met with some success, and today about 50% of therapeutic antibodies in development include some sort of alteration to mitigate unwanted side-effects. However, these approaches do not solve the problem completely. QumAb builds on this previous work to provide a complete Fc-silencing solution with excellent manufacturability properties.

Dr Ian Wilkinson, inventor of the QumAb technology, said: "After working with numerous pharma and biotech companies using the earlier methods with limited success, I became convinced that a better solution was possible. I went back to first principles to design and screen a large panel of variants from which QumAb was discovered. I am delighted that in such a short time the new technology is being taken into commercial development."

Prof Geoff Hale, CEO of mAbsolve, said: "I have devoted my career to the development of therapeutic antibodies, and while we saw some success, many promising antibody drugs were discarded because of unacceptable levels of inflammatory response. QumAb is the best solution to this problem that I have seen and I am thrilled to be working with Novalgen as the first adopter of this new technology."

Mr Nilesh Modi, COO of Novalgen, said: "I’m delighted to be working with the newly formed mAbsolve team, who individually have fantastic track records. Licensing the QumAb antibody silencing solution will add to our array of technologies and we hope will help us develop safer antibody therapies, and will deliver the life-changing treatments that many patients desperately need.."

Prof Amit Nathwani, CEO and Founder of Novalgen. Professor of Haematology, University College London said: "The QumAb technology represents a significant advance and will help NovalGen develop life changing therapeutics for a range of disorders with unmet clinical need. We are excited to be working in partnership with mAbsolve."

Prof Kerry Chester, Chief Scientific Officer of Novalgen and Professor of Molecular Medicine, University College London said: "We are thrilled to be early adopters of the QumAb Fc-silencing technology. I have every confidence in the mAbsolve team and believe that QumAb technology will be a critical part of new antibody-based therapies."

Atomwise Receives a $2.3M Grant

On October 6, 2020 Atomwise reported $2.3M in grant funding for AI-based discovery of antimalarial and anti-tuberculosis therapies (Press release, Atomwise, OCT 6, 2020, View Source [SID1234568262]).

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Atomwise, the leader in using artificial intelligence (AI) for small molecule drug discovery, announced today $2.3M in grant funding for AI-based discovery of antimalarial and anti-tuberculosis therapies from the Bill & Melinda Gates Foundation. The grant funding will be used to discover novel compounds that can advance the development of novel antimalarial and anti-tuberculosis small molecule therapies in collaboration with the Gates Foundation’s global network of partners and funded investigators. Atomwise will provide AI-based drug discovery support to leading researchers to translate their biological discoveries into novel therapies.

Atomwise is revolutionizing how drugs are discovered with AI. We invented the use of deep learning for structure-based drug discovery, today developing a pipeline of small-molecule drug candidates advancing into preclinical studies. Our AtomNet technology has been used to unlock more undruggable targets than any other AI drug discovery platform. We are tackling over 600 unique disease targets across 775 collaborations spanning more than 250 partners around the world. Our portfolio of joint ventures and partnerships with leading pharmaceutical, agrochemical, and emerging biotechnology companies represents a collective deal value approaching $7 billion. Atomwise has raised over $174 million from leading venture capital firms to advance our mission to make better medicines, faster. Learn more at atomwise.com or follow @AtomwiseInc.

Termination of a Material Definitive Agreement

On October 6, 2020, Advaxis, Inc. (the "Company") reported that received a notice (the "Notice") from Aratana Therapeutics, Inc. ("Aratana"), dated September 17, 2020, indicating that Aratana is terminating the Exclusive License Agreement, dated March 19, 2014, by and between Aratana and the Company (the "Agreement") and that such termination of the Agreement will be effective on December 21, 2020 (Filing, 8-K, Advaxis, OCT 6, 2020, View Source [SID1234568218]). Other than in respect of the Agreement, there is no material relationship between the Company and Aratana.

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Under the Agreement, the Company granted Aratana an exclusive, worldwide, royalty-bearing license, with the right to sublicense, certain of the Company’s proprietary technology to enable Aratana to develop and commercialize animal health products targeted for treatment of osteosarcoma and other cancer indications in animals. Aratana paid an upfront payment to the Company in the amount of $1 million upon signing of the Aratana Agreement. The Agreement also required Aratana to pay the Company (a) up to $36.5 million based on the achievement of milestones relating to the advancement of products through the approval process with the United States Department of Agriculture in the United States and the relevant regulatory authorities in the European Union, and up to an additional $15 million in cumulative sales milestones based on achievement of gross sales revenue targets for sales of any and all products for use in non-human animal health applications, or the Aratana Field (regardless of therapeutic area), and (b) tiered royalties starting at 5% and going up to 10%, paid based on net sales of any and all products (regardless of therapeutic area) in the Aratana Field in the United States. The Agreement required royalties for sales of products outside of the United States to be paid at a rate equal to half of the royalty rate payable by Aratana on net sales of products in the United States (starting at 2.5% and going up to 5%). The Agreement also required Aratana to pay the Company 50% of all sublicense royalties received by Aratana and its affiliates. In fiscal year 2019, the Company received approximately $8,000 in royalty revenue from Aratana.

The Notice of termination follows Aratana’s acquisition by Elanco Animal Health Incorporated, effective July 18, 2019.

The Company will not incur any early termination penalties as a result of the termination. Aratana will be required to make all payments to the Company that would have otherwise been payable under the Agreement through the effective date of the termination.

Polaris Group signs collaboration agreement with Nanotein Technologies, Inc.

On October 6, 2020 Nanotein Technologies, Inc., an innovative startup biotechnology company in the San Francisco Bay Area, and Polaris Group, a developer of novel treatments for cancer, reported they have entered into a strategic partnership to advance Nanotein’s protein-based solutions for superior cellular therapy manufacturing (Press release, Polaris Pharmaceuticals, OCT 6, 2020, View Source [SID1234568215]). As part of the agreement, Polaris will manufacture research use only and GMP grade material for Nanotein. Polaris will receive equity and royalties for their manufacturing services.

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