DiaGenic ASA: Report from Fourth Quarter 2013

Organizational downsizing and cost reductions implemented and the board has presented a proposal to secure financing of DiaGenic

OSLO, Norway--()--Regulatory News:

DiaGenic ASA (OSE:DIAG):

The interim report for the fourth quarter 2013 was approved by the Board of Directors on 19 February 2014. Please find the interim report and presentation attached.

Highlights from the report:

· On 10 October 2013 DiaGenic announced the results from a calibration study for an optimized MCItect test based on a larger study population. In a patient population of 157 patients diagnosed with amnestic mild cognitive impairment, MCItect® demonstrated a total prediction accuracy of 75% in detecting patients converting to Alzheimer’s disease dementia within two years

· On 28 October DiaGenic announced that its management and board of directors will seek to restructure the company, and/or divest all or selected company assets. As a consequence, the Board decided to give notice of termination to the staff; a process which was fully executed by the end of October. Work to finalize ongoing projects and third party collaborations continued during 2013,and was completed in January.

· On 29 October DiaGenic reported intermediate results from an exploratory study that examines the agreement between gene expression in blood and brain amyloid PET imaging. In an initial patient population of 100 patients, an agreement between brain amyloid load as measured by brain PET imaging and gene expression in peripheral blood was established.

· On 22 November DiaGenic’s Extraordinary General Meeting resolved to elect Hanne Skaarberg Holen (chairman), Øystein Stray Spetalen and Martin Nes as members of the board of directors in DiaGenic.

· Q4 2013 pre-tax earnings were NOK –6.7 million compared with NOK –10.9 million in Q4 2012

Significant events after the end of the period:

· DiaGenic has entered into an agreement with its largest creditor that significantly reduced DiaGenic’s financial liabilities going forward.

· The Board of DiaGenic has resolved to propose that the Company carries out a new share issue of NOK 50 million, by way of a rights issue with preferential rights for shareholders of Diagenic. The Company has secured a full underwriting of the Rights Issue through an underwriting syndicate. The proposed Rights Issue remains subject to shareholder approval at an extraordinary general meeting in DiaGenic

· DiaGenic reported final results from an exploratory study that examined the agreement between gene expression in blood and brain amyloid PET imaging. In a patient population of 144 patients, a gene expression biomarker was identified that demonstrated an agreement of 69% with brain amyloid PET imaging.

· Ruben Ekbråten has been appointed as the new Acting Chief Executive Officer (CEO) of DiaGenic ASA effective from 1st February 2014.

· Effective from 1st February 2014 DiaGenic has changed address to: Sjølyst plass 2, 0278 Oslo, Norway

· The board of directors of DiaGenic ASA has called for an extraordinary general meeting on 25 February 2014

Outlook

DiaGenic´s goals for the next 6 months include:

· Secure financing of the Company through the proposed rights issue

· Continue the restructuring process of the company to enable the Company to pursue growth and development in its existing business, through new opportunities within biotech/pharmaceuticals or other areas

For the interim report and presentation: http://mb.cision.com/Public/115/9539846/a40eee0ce095b373.pdf and http://mb.cision.com/Public/115/9539846/a40eee0ce095b373.pdf

About DiaGenic ASA

DiaGenic is an innovative Norwegian diagnostic company that seeks to create value for patients, partners and investors by developing innovative and patient friendly in vitro diagnostic (IVD) products for early detection of diseases. The company’s proprietary concept implies that a disease evokes systemic responses in the blood unique for the disease, and which can be measured by using a blood sample. DiaGenic is a world leader in identifying gene expression signatures in blood and is focused on the development of IVD biomarker products in the field of Alzheimer’s disease. The company protects its technology through an extensive patent portfolio. DiaGenic is listed on the Oslo Stock Exchange. For more information please visit: www.diagenic.com

This information was brought to you by Cision http://news.cision.com

Contacts

Ruben Ekbråten
Acting CEO
Telephone: 47 2324 8950
e-mail: ruben.ekbraten@diagenic.com

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Contacts

Ruben Ekbråten
Acting CEO
Telephone: 47 2324 8950
e-mail: ruben.ekbraten@diagenic.com