Diamyd Medical’s Phase III study did not reach the primary endpoint of preserving beta cell function at 15 months. We see no reason why the results from the other Phase III study in the US would be any different, so we have reduced expectations for the project to zero. We feel that that the disappointing results will also influence the collaboration with Johnson & Johnson, which we assume will be discontinued. The negative results have a huge impact on our valuation of Diamyd Medical as the diabetes vaccine comprised over 80 percent of the value of the project portfolio. We are reducing estimated DCF value to SEK 31. Expect the share to be traded at a high valuation discount.
