Diamyd Medical Falls Most in Two Weeks After Deal Termination
Diamyd Medical AB (DIAMB), a Swedish biotech company, fell the most since May 16 in Stockholm trading after saying it terminated an agreement with Ortho-McNeil-Janssen Pharmaceuticals Inc. on the development of a diabetes therapy.
The shares dropped as much as 1.75 kronor, or 15 percent, to 10.20 kronor and were down 13 percent as of 10:28 a.m. in the seventh consecutive day of declines. Ortho-McNeil-Janssen is a unit of Johnson & Johnson (JNJ), based in New Brunswick, New Jersey.
The termination of the agreement to develop a therapy aimed at treatment and prevention of type 1 diabetes, signed in June last year, follows a late-stage European study that didn’t meet the primary goal. The results, announced May 9, sent Diamyd’s stock down 85 percent.
Diamyd said today it’s closing the European study and that results from a parallel Phase III study in the U.S. are expected in the summer of 2012.
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