Diamedica Therapeutics (DMAC) AI Stock Analysis

• Market Cap: $411.41M
• Dividend Yield: N/A
• Average Volume (3M): 204.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: N/A
• EPS Growth: -29.73%
• Country: US
• Employees: 27
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.17
• Shares Outstanding: 52,077,440
• 10 Day Avg. Volume: 226,952
• 30 Day Avg. Volume: 204,306
• PEG Ratio: 0.00
• Price to Book (P/B): 5.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.93
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -13.43K
• Enterprise Value/Ebitda: -11.95
• 1Y Price Target: $17.00
• Price Target Upside: 115.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $7.50 ▼(-5.06% Downside)

The score is held back primarily by pre-revenue financial performance—widening losses and increasing cash burn—despite a low-debt balance sheet. Earnings-call updates provide some support via positive clinical signals and strengthened liquidity, while technical indicators are mixed and valuation metrics offer limited help given ongoing losses and no dividend.

Positive Factors

Positive Phase 2 preeclampsia results

Statistically significant blood pressure reductions and absence of placental crossing are durable clinical signals that raise the probability of regulatory success in preeclampsia. Positive safety and efficacy data support expansion to additional cohorts and enhance the asset's long-term commercial potential.

Low leverage balance sheet

Very low debt and a larger equity base provide financial flexibility typical of a stronger balance sheet for a clinical-stage biotech. This reduces refinancing risk, supports continued clinical spending, and preserves options for partnerships or staged financings over the medium term.

Improved cash runway from recent financing

A materially larger cash balance from recent financing materially extends runway for pivotal development activities. This durable improvement lowers near-term dilution pressure, allows planned trial expansions, and increases strategic optionality for partnering or milestone-driven spend.

Negative Factors

Pre-revenue with accelerating cash burn

Zero product revenue and steadily widening net losses with accelerating operating cash outflows mean the company must rely on financings or partnerships to fund operations. Over months, this structural cash-burn profile increases dilution risk and constrains strategic choices until commercial revenue or partner funding emerges.

Slow enrollment delays stroke program

Slower-than-expected enrollment pushes timelines and raises development risk for the stroke program. Prolonged trials increase cost, defer potential value catalysts, and may allow competitors to advance, weakening the long-term competitive position for a successful stroke indication.

Rising R&D and persistently negative returns

Higher R&D and operating expenses are deepening losses and contributing to a very negative TTM ROE (~-79%). Sustained negative returns on equity and rising spend pressure magnify the need for external funding and may compress shareholder value absent clear path to commercial revenue or partner-funded programs.

Diamedica Therapeutics Business Overview & Revenue Model

Company Description

DiaMedica Therapeutics Inc., a clinical stage biopharmaceutical company, develops treatments for neurological and kidney diseases. The company's lead drug candidate is DM199, a recombinant human tissue kallikrein-1 protein, which is in Phase 2 REDUX trial for the treatment of patients with moderate or severe chronic kidney disease caused by Type I or Type II diabetes; and Phase 2/3 REMEDY2 trials for the treatment of patients with acute ischemic stroke. It is also developing DM300 that is in pre-clinical stage for the treatment of inflammatory diseases. The company was formerly known as DiaMedica Inc. and changed its name to DiaMedica Therapeutics Inc. in December 2016. DiaMedica Therapeutics Inc. was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Diamedica Therapeutics generates revenue primarily through strategic partnerships, collaborations, and licensing agreements with larger pharmaceutical companies. These arrangements often include upfront payments, milestone payments based on the achievement of certain development or regulatory goals, and royalties on future sales of successfully commercialized products. The company also seeks funding through public and private financing to support its research and development efforts, which is crucial for advancing its pipeline candidates through clinical trials.

Diamedica Therapeutics Financial Statement Overview

Summary

Financials reflect a pre-revenue biotech profile: $0 revenue with widening losses (TTM net loss -$31.9M) and accelerating cash burn (TTM operating cash flow -$27.8M). The main offset is a low-leverage balance sheet with meaningful equity, but returns remain deeply negative (TTM ROE ~-79%).

Income Statement

DMAC remains a pre-revenue biotech with $0 revenue across the annual periods provided and in TTM (Trailing-Twelve-Months), so losses are the defining feature of the income statement. Net loss has widened materially from 2020 (-$12.3M) to 2024 (-$24.4M) and further in TTM (Trailing-Twelve-Months) (-$31.9M), indicating rising operating spend. Profitability is consistently negative (EBIT and EBITDA both deeply negative), with no visible inflection toward break-even in the provided data; the main positive is that low revenue does not mask underlying expense discipline—losses are clearly attributable to ongoing R&D/operating burn typical of the industry.

Balance Sheet

The balance sheet is a relative bright spot: leverage is extremely low (debt-to-equity ~0.8%–1.5% historically; ~1.1% in TTM (Trailing-Twelve-Months)), with total debt only ~$0.27M in TTM (Trailing-Twelve-Months). Equity is sizable and has increased versus 2024 ($51.6M TTM (Trailing-Twelve-Months) vs. $40.7M in 2024), supporting financial flexibility. The key weakness is persistent negative returns on equity (TTM (Trailing-Twelve-Months) ROE around -79%), reflecting that shareholders’ capital is being consumed by ongoing losses despite the low debt burden.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow are consistently negative and have deteriorated in absolute terms from 2020 (operating cash flow about -$9.2M) to 2024 (-$22.1M) and TTM (Trailing-Twelve-Months) (-$27.8M). While free cash flow is roughly in line with net loss (free cash flow to net income ~1.0), that primarily indicates losses are translating into cash burn rather than being offset by non-cash items. Free cash flow growth is volatile (positive in TTM (Trailing-Twelve-Months) but negative in several annual periods), highlighting an uncertain cash runway trajectory without revenue or external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-29.00K	0.00	0.00	0.00	0.00	0.00
EBITDA	-32.61M	-26.64M	-21.24M	-13.98M	-13.62M	-12.68M
Net Income	-31.93M	-24.44M	-19.38M	-13.68M	-13.59M	-12.29M
Balance Sheet
Total Assets	57.05M	46.34M	54.16M	34.40M	45.55M	28.09M
Cash, Cash Equivalents and Short-Term Investments	55.32M	44.15M	52.90M	33.50M	45.11M	27.51M
Total Debt	266.00K	340.00K	400.00K	469.00K	52.00K	118.00K
Total Liabilities	5.42M	5.63M	3.10M	2.57M	1.53M	2.08M
Stockholders Equity	51.62M	40.72M	51.06M	31.83M	44.02M	26.01M
Cash Flow
Free Cash Flow	-27.83M	-22.10M	-18.75M	-11.59M	-12.27M	-9.23M
Operating Cash Flow	-27.79M	-22.08M	-18.73M	-11.51M	-12.25M	-9.19M
Investing Cash Flow	-5.42M	8.56M	-18.30M	11.54M	-20.54M	-16.13M
Financing Cash Flow	32.38M	11.99M	36.84M	-6.00K	30.09M	28.84M

Diamedica Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DMAC, the sentiment is Negative. The current price of 7.9 is below the 20-day moving average (MA) of 8.20, below the 50-day MA of 8.41, and above the 200-day MA of 6.08, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 19.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DMAC.

Diamedica Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAPR	57 Neutral	$1.33B	-12.80	-107.79%	―	-52.08%	-69.35%
ANNX	56 Neutral	$874.16M	-4.00	-83.98%	―	―	-35.62%
RCKT	52 Neutral	$360.38M	-1.33	-74.88%	―	―	18.39%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DMAC	49 Neutral	$411.41M	-10.51	-64.12%	―	―	-29.73%
BNTC	48 Neutral	$420.23M	-11.59	-43.71%	―	―	80.95%
TVRD	46 Neutral	$36.21M	-0.36	-97.61%	―	-53.67%	86.75%

Diamedica Therapeutics Corporate Events

DiaMedica Therapeutics Raises Capital via Share Offering

On December 19, 2025, DiaMedica Therapeutics Inc. sold 1,501,000 common shares to a healthcare institutional fund at a price of $8.10 per share in a block transaction conducted under its at-the-market offering program, generating $12.2 million in gross proceeds before fees and expenses. The capital raise strengthens the company’s financial position and provides additional funding flexibility for its ongoing operations and development activities, potentially supporting its strategic initiatives in the biopharmaceutical market.

The most recent analyst rating on (DMAC) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Diamedica Therapeutics stock, see the DMAC Stock Forecast page.