DiaMedica's DM-199 for Type 1 Diabetes Significantly Delays Autoimmune Attack and Demonstrates a Dramatic Increase in C-Pepti...

DiaMedica Inc. (TSX VENTURE:DMA) is pleased to announce new compelling Type 1
diabetes data. An in vivo study with the chronic administration of DM-199
significantly delayed the autoimmune attack, preserved beta cell mass and
demonstrated a 12-fold increase in circulating C-peptide levels in the non-obese
diabetic (NOD) animal model. 


"The most compelling results of the study was the significant dose-dependent
increase in circulating C-peptide levels, a key indicator of functional beta
cells producing insulin," stated Dr. Savinov, MD, from The Sanford Project and
lead investigator of the study. "Such an unprecedented increase in C-peptide
levels reflects not only improved insulin secretion, but most likely points
towards DM-199's ability to stabilize and preserve C-peptide in peripheral
blood. These effects of DM-199 treatment can also provide potential benefit to
patients suffering from diabetes complications such as diabetic neuropathy
(nerve damage which can lead to loss of feeling and limb amputation),
nephropathy (progressive kidney disease leading to failure and dialysis) and
retinopathy (progressive loss of eyesight)."


"The primary endpoint in most Type 1 diabetes clinical trials is C-peptide
levels," stated Rick Pauls, President and CEO of DiaMedica. "The fact that
C-peptide levels actually exceeded the normal physiological range and achieved
therapeutic concentrations used in clinical studies suggests that DM-199 is a
very strong clinical candidate for the treatment of Type 1 diabetes and some of
its complications. C-peptide is the primary indicator of functional beta cells
producing insulin, as there is a 1:1 relationship between C-peptide and insulin
production."


Additionally, the increase in C-peptide levels correlated with preserved beta
cell mass, reduced insulitis (inflammation of beta cells) and increased
regulatory T cell populations that suppress unwanted immune responses.
Furthermore, insulin-producing beta cells in the pancreas were still functional
as good glucose control was observed and DM-199 treatment was well tolerated
throughout the study (18 weeks). 


The results of the DM-199 Type 1 diabetes study will be presented on December
5th 2011, at the 21st International Diabetes Federation (IDF) World Diabetes
Congress (Dubai, UAE) by Dr. Alexei Savinov, MD, from The Sanford Project. The
Sanford Project and DiaMedica also intend to publish the results of this study
together in a peer-reviewed publication. 


About DiaMedica 

DiaMedica is a biopharmaceutical company, which develops novel therapeutic
compounds aimed to improve the lives of patients with diabetes and other major,
medically-unmet diseases. DiaMedica's lead compound, DM-199, represents a novel
approach to treating Type 1 and Type 2 diabetes by demonstrating significant
results against three major aspects of these diseases. Treatment with
DiaMedica's monoclonal antibody, DM-204, has demonstrated significant
improvement in glucose control, blood pressure and cholesterol levels in
pre-clinical models of Type 2 diabetes. 


The company is listed on the TSX Venture Exchange under the trading symbol 'DMA'. 

About C-Peptide in Diabetes 

Type 1 diabetes is characterized by the body's inability to produce pro-insulin
consisting of insulin and C-peptide. C-peptide is a naturally-occurring protein
that is produced along with insulin at a 1:1 ratio in the pancreas, it is the
primary indicator of functioning insulin producing beta cells. Type 1 and some
Type 2 diabetics have deficient levels of C-peptide, which has also been
directly associated with complications such as diabetic neuropathy (nerve damage
which can lead to loss of feeling and limb amputation), nephropathy (progressive
kidney disease leading to failure and dialysis) and retinopathy (progressive
loss of eyesight).


Caution Regarding Forward-Looking Information

The statements made in this press release that are not historical facts contain
forward-looking information that involves risk and uncertainties. All
statements, other than statements of historical facts, which address DiaMedica's
expectations, should be considered forward-looking statements. Such statements
are based on management's exercise of business judgment as well as assumptions
made by and information currently available to management. When used in this
document, the words "may", "will", "anticipate", "believe", "estimate",
"expect", "intend" and words of similar import, are intended to identify any
forward-looking statements. You should not place undue reliance on these
forward-looking statements. These statements reflect a current view of future
events and are subject to certain risks and uncertainties as contained in the
Company's filings with Canadian securities regulatory authorities. Should one or
more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results could differ materially from those
anticipated in these forward-looking statements. The Company undertakes no
obligation, and does not intend, to update, revise or otherwise publicly release
any revisions to these forward-looking statements to reflect events or
circumstances after the date hereof, or to reflect the occurrence of any
unanticipated events. Although management believes that expectations are based
on reasonable assumptions, no assurance can be given that these expectations
will materialize.