Diamedica Therapeutics ((DMAC)) has held its Q2 earnings call. Read on for the main highlights of the call.
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DiaMedica Therapeutics’ recent earnings call painted a picture of both progress and challenges. The company is making significant strides in its clinical programs, particularly in preeclampsia and stroke, while successfully raising capital and enhancing its strategic team and market presence. However, financial hurdles remain, with increased net losses and operational expenses posing challenges.
Positive Interim Results for Preeclampsia Program
DiaMedica announced promising interim results from Part 1a of its Phase II trial of DM199 for preeclampsia. The trial demonstrated a statistically significant reduction in both systolic and diastolic blood pressure without placental transfer, indicating potential efficacy and safety of the treatment.
Advancement in Stroke Program
The company presented encouraging results from the ReMEDy1 Phase II trial at the European Stroke Organization Conference. Enrollment for the ongoing ReMEDy2 trial is progressing well, with an interim analysis expected in the second quarter of 2026.
Successful $30 Million Private Placement
DiaMedica successfully completed a $30 million private placement, which extends its cash runway into the second half of 2027. This financial boost will support further development of its stroke and preeclampsia programs.
Addition to Russell 2000 and Russell 3000 Indexes
The company’s inclusion in the Russell 2000 and Russell 3000 indexes enhances its visibility among institutional investors, potentially attracting more investment and interest.
Appointment of Dr. Julie Krop as Chief Medical Officer
Dr. Julie Krop has joined DiaMedica as Chief Medical Officer. With her extensive experience in biopharma, she brings valuable expertise in developing treatments for severe preeclampsia.
Increased Net Loss
DiaMedica reported increased net losses of $7.7 million and $15.4 million for the three and six months ended June 30, 2025, compared to $5.1 million and $10.3 million in the same periods in 2024, highlighting the financial challenges the company faces.
Rising Research and Development Expenses
Research and development expenses rose to $5.8 million and $11.5 million for the three and six months ended June 30, 2025, from $3.9 million and $7.6 million in the prior year. This increase is attributed to the ReMEDy2 trial and the expansion of the clinical team.
Increased General and Administrative Expenses
General and administrative expenses increased to $2.2 million and $4.7 million for the three and six months ended June 30, 2025, from $1.7 million and $3.8 million in the prior year. The rise is due to additional share-based compensation and personnel costs.
Forward-Looking Guidance
DiaMedica’s forward-looking guidance highlights significant progress in its preeclampsia program, particularly with the DM199 candidate. The company plans to advance to Cohort 10 and enroll three concurrent cohorts addressing preeclampsia and fetal growth restriction. Financially, DiaMedica aims to leverage its $30 million private placement to support ongoing trials, with an interim analysis of the ReMEDy2 stroke trial expected in Q2 2026.
In summary, DiaMedica Therapeutics’ earnings call reflects a company on the move, with significant advancements in its clinical programs and strategic initiatives. While financial challenges persist, the company’s proactive measures and promising trial results offer a hopeful outlook for the future.