DiaMedica Therapeutics’ Earnings Call: Mixed Outlook

Diamedica Therapeutics ((DMAC)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for DiaMedica Therapeutics presented a mixed sentiment, highlighting both promising advancements and notable challenges. Positive developments were noted in the preeclampsia program, which showcased encouraging interim results. However, the company faces hurdles with slow enrollment in the stroke trial and rising operating expenses, which could impact future progress.

Positive Interim Results for DM199 in Preeclampsia

The earnings call revealed significant progress in DiaMedica’s preeclampsia program. Interim results from Part 1a of the Phase 2 trial in South Africa demonstrated statistically significant reductions in both systolic and diastolic blood pressure. Additionally, improvements in uterine artery blood flow were observed, and the trial confirmed that DM199 does not cross the placental barrier, indicating a strong safety profile.

Increased Cash Position

DiaMedica reported a robust cash position, with cash, cash equivalents, and short-term investments totaling $55.3 million as of September 30, 2025. This marks a substantial increase from $30 million at the end of June 2025, attributed to net proceeds from a private placement in July.

No Safety Concerns in ReMEDy2 Stroke Trial

The independent Data Safety Monitoring Board reviewed safety data from the first 50 participants in the ReMEDy2 stroke trial and reported no safety concerns. This finding supports the ongoing safety of the trial, despite other challenges it faces.

Slow Enrollment in ReMEDy2 Stroke Trial

Enrollment in the ReMEDy2 stroke trial has been slower than anticipated due to changes in stroke referral patterns. This delay may push the interim analysis to the second half of 2026, affecting the trial’s timeline.

Increased Operating Expenses

Operating expenses have risen significantly, with R&D expenses reaching $6.4 million for the quarter and $17.9 million year-to-date. This increase is primarily due to the ReMEDy2 trial and the expansion of the clinical team, reflecting the company’s commitment to advancing its clinical programs.

Higher Net Losses

DiaMedica reported higher net losses for the three and nine-month periods ending September 30, 2025, at $8.6 million and $24.0 million, respectively. This is a notable increase from $6.3 million and $16.5 million in the same periods of 2024, highlighting the financial impact of their ongoing trials and expansions.

Forward-Looking Guidance

Looking ahead, DiaMedica is focused on advancing its clinical programs, particularly the DM199 trials. The company plans to expand the preeclampsia study to include early onset preeclampsia and fetal growth restriction cohorts, with completion expected in the first half of 2026. Despite enrollment challenges in the stroke program, DiaMedica anticipates completing the interim analysis in the second half of 2026. Financially, the company remains strong with a cash position of $55.3 million, supporting its ongoing clinical progress.

In summary, DiaMedica Therapeutics’ earnings call highlighted a blend of optimism and caution. While the company is making strides in its preeclampsia program and maintains a strong cash position, challenges such as slow trial enrollment and increased expenses pose potential obstacles. Investors and stakeholders will be keenly watching how these dynamics unfold in the coming quarters.