Diamedica Therapeutics ((DMAC)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The recent earnings call of DiaMedica Therapeutics showcased a positive outlook, highlighting significant progress in their clinical programs and maintaining financial stability, despite facing some increased operational expenses.
Progress in Preeclampsia Program
DiaMedica is making strides in its preeclampsia program, nearing the identification of a target dose for its Phase 2 trial. The company anticipates releasing preliminary top-line results between late June and early July, marking a crucial step in their research efforts.
Steady Enrollment in Stroke Program
The stroke program at DiaMedica is progressing steadily, with participant enrollment reaching between the 20th and 25th percentile for interim analysis. This progress is vital for the upcoming evaluations and future developments in the program.
Financial Stability
DiaMedica reported a robust financial position with a total combined cash and investments of $37.3 million as of March 31, 2025. This financial strength provides the company with a runway into the third quarter of 2026, ensuring continued support for its clinical programs.
Increased R&D Investment
The company’s research and development expenses rose to $5.7 million for the first quarter of 2025. This increase is primarily attributed to the ongoing ReMEDy2 clinical trial and the company’s global expansion efforts, underscoring their commitment to advancing medical research.
Increased Net Cash Used in Operations
DiaMedica experienced an increase in net cash used in operating activities, which rose to $7.1 million for Q1 2025 from $6.7 million in Q1 2024. This rise reflects the company’s intensified focus on expanding its operational capabilities.
Decrease in Net Other Income
The company reported a decrease in net other income to $443,000 for Q1 2025 compared to $597,000 in Q1 2024. This decline is mainly due to reduced interest income, impacting the overall financial results.
Forward-Looking Guidance
DiaMedica provided forward-looking guidance during the earnings call, focusing on their preeclampsia and stroke programs. They are nearing the completion of Part 1a of their Phase 2 preeclampsia trial, with preliminary results expected soon. The stroke program has reached 20-25% enrollment for interim analysis, with results anticipated in the first half of 2026. Financially, the company expects its current funds to last into Q3 of 2026.
In summary, DiaMedica Therapeutics’ earnings call reflected a positive sentiment with substantial progress in clinical trials and a stable financial position. Despite some increased operational expenses, the company remains on track with its strategic goals, providing optimism for future developments.