Board of Directors approve interim report for second quarter 2013

DiaGenic (OSE:DIAG): The interim report for the second quarter 2013 was approved by the Board of Directors on 22 August 2013. Please find the interim report and presentation attached.

Highlights from the report:

• On 2 April 2013 the Extraordinary General Meeting of DiaGenic resolved the private placement and subsequent offering at a price of NOK 0.60 per share. A total of 54,575,078 new shares have been issued with total gross proceeds of NOK 33 million, which brings total share capital up to NOK 40,799,365 divided into 81,598,730 shares
• Q2 2013 pre-tax earnings were NOK -11.0 million compared with NOK -12.5 million in Q2 2012, in line with estimates
• The validation study for MCItect® was carried out according to plan. Negative top line study results were reported after the end of the period
• Patient recruitment for AMYtect™ progressed according to plan and clinical patient data was collected for the patients required for the exploratory study
• The validation study for the new ADtect® product was temporarily postponed due to prioritization of organizational resources

Significant events after the end of the period:

• On July 29th, DiaGenic reported that the validation study for MCItect®, a blood based diagnostic test for Alzheimer's disease in the pre-dementia stage, had failed to reach the target results. Consequently, DiaGenic will not pursue CE-marking or U.S. trials with the current version of MCItect®
• Work to develop and verify an optimized MCItect® biomarker test, based on a significantly larger and geographically more representative patient population, has been initiated
• The Board and management has decided to implement a program to reduce operational expenses, the details of which are expected to be communicated during the month of August

Outlook

DiaGenic´s goals for the next 6 months include:

• To deliver on the near-term milestones related to product development:
  • Complete the AMYtect™ study for a novel blood-based test correlating with brain PET imaging
  • Complete the calibration study for an optimized MCItect® product
  • Finalize development of new ADtect®
  • Proactively pursue alternatives for strategic company development providing optimal shareholder value, including strategic collaborations, asset or trade sale or equity financing
  • Implement a program to reduce operational expenses, the details of which are expected to be communicated during the month of August