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Diamedica Therapeutics Inc (DMAC)
NASDAQ:DMAC
US Market

Diamedica Therapeutics (DMAC) AI Stock Analysis

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Diamedica Therapeutics

(NASDAQ:DMAC)

Rating:42Neutral
Price Target:
Diamedica Therapeutics faces significant financial hurdles with no revenue and rising net losses, leading to a low financial performance score. Technical analysis presents mixed signals, adding uncertainty. Despite this, the company's optimistic guidance and significant progress in clinical trials offer some potential, reflected in a moderate earnings call score. However, the speculative nature of its valuation due to the absence of earnings and dividends remains a key risk.
Positive Factors
Clinical Trials
The data safety monitoring board has completed its safety review of the intravenous dosing rates with determination to continue without modification.
Market Opportunities
Positive preeclampsia results could solidify the company as a likely takeout candidate, potentially catalyzed by positive stroke data.
Product Innovation
Specialists expressed enthusiasm for a viable preeclampsia treatment, which currently lacks FDA-approved therapy.
Negative Factors
Operational Challenges
The delay in the ReMEDy2 interim analysis readout is not an ideal message.

Diamedica Therapeutics (DMAC) vs. SPDR S&P 500 ETF (SPY)

Diamedica Therapeutics Business Overview & Revenue Model

Company DescriptionDiaMedica 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 MoneyDiamedica 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 Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: -8.29%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant progress in clinical programs and financial stability, despite some increased operational expenses.
Q1-2025 Updates
Positive Updates
Progress in Preeclampsia Program
DiaMedica is close to identifying a target dose for its Phase 2 preeclampsia trial, with preliminary top-line results expected between late June and early July.
Steady Enrollment in Stroke Program
Participant enrollment in the stroke program is progressing, with enrollment between the 20th and 25th percentile for interim analysis.
Financial Stability
DiaMedica reported a total combined cash and investments of $37.3 million as of March 31, 2025, providing a runway into Q3 of 2026.
Increased R&D Investment
Research and development expenses increased to $5.7 million for Q1 2025, primarily due to the continuation of the ReMEDy2 clinical trial and global expansion.
Negative Updates
Increased Net Cash Used in Operations
Net cash used in operating activities increased to $7.1 million for Q1 2025 from $6.7 million in Q1 2024.
Decrease in Net Other Income
Net other income decreased to $443,000 for Q1 2025 compared to $597,000 for Q1 2024, due to reduced interest income.
Company Guidance
During DiaMedica Therapeutics' First Quarter 2025 Conference Call, the company provided guidance on their preeclampsia and stroke programs. They are nearing completion of Part 1a of their Phase 2 preeclampsia trial, focusing on safety, blood pressure reduction, and uterine blood flow metrics, with preliminary results expected between late June and early July. The stroke program has reached 20-25% enrollment for interim analysis, with results targeted for the first half of 2026. Financially, DiaMedica reported $37.3 million in cash and investments at the end of March 2025, with a net cash usage of $7.1 million in Q1, and anticipates that current funds will last into Q3 of 2026.

Diamedica Therapeutics Financial Statement Overview

Summary
Diamedica Therapeutics, operating in the biotechnology sector, exhibits typical financial characteristics of a company in the development phase. The absence of revenue coupled with increasing net losses highlights the need for successful product development and eventual commercialization. While the balance sheet shows low leverage, diminishing cash reserves could pose a risk to its operational sustainability without additional funding. The firm's reliance on external financing to support negative cash flows underscores the challenges in achieving financial independence.
Income Statement
10
Very Negative
Diamedica Therapeutics has consistently reported zero revenue, reflecting its developmental stage focus typical in the biotechnology industry. The company incurred significant net losses over the years, with a noticeably increasing net loss from $13.6M in 2022 to $24.4M in 2024. The lack of revenue growth and persistent negative net income are significant concerns.
Balance Sheet
45
Neutral
The company's balance sheet shows a high equity ratio, with stockholders' equity consistently making up a significant portion of total assets (87.9% in 2024). The debt-to-equity ratio remains low, indicating limited leverage, which is positive. However, declining total assets from $54.2M in 2023 to $46.3M in 2024, alongside decreasing cash reserves, may constrain future financial flexibility.
Cash Flow
30
Negative
Diamedica's cash flow situation highlights ongoing operational cash outflows, with operating cash flow deteriorating from -$18.7M in 2023 to -$22.1M in 2024. Free cash flow has also been negative, reflecting the cash burn typical in biotech firms without commercial products. The company relies heavily on financing activities to support its cash flow needs, which may not be sustainable long-term.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-6.89M0.00-30.00K-25.00K-24.00K-21.00K
EBITDA-29.04M-24.38M-19.31M-13.98M-13.62M-12.24M
Net Income-27.00M-24.44M-19.38M-13.68M-13.59M-12.29M
Balance Sheet
Total Assets38.83M46.34M54.16M34.40M45.55M28.09M
Cash, Cash Equivalents and Short-Term Investments36.32M44.15M52.90M33.50M45.11M27.51M
Total Debt316.00K340.00K400.00K469.00K52.00K118.00K
Total Liabilities4.88M5.63M3.10M2.57M1.53M2.08M
Stockholders Equity33.95M40.72M51.06M31.83M44.02M26.01M
Cash Flow
Free Cash Flow-22.60M-22.10M-18.75M-11.59M-12.27M-9.23M
Operating Cash Flow-22.57M-22.08M-18.73M-11.51M-12.25M-9.19M
Investing Cash Flow10.98M8.56M-18.30M11.54M-20.54M-16.13M
Financing Cash Flow12.09M11.99M36.84M-6.00K30.09K28.84M

Diamedica Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.65
Price Trends
50DMA
3.96
Negative
100DMA
4.46
Negative
200DMA
4.71
Negative
Market Momentum
MACD
-0.09
Positive
RSI
44.28
Neutral
STOCH
39.81
Neutral
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 3.65 is below the 20-day moving average (MA) of 3.77, below the 50-day MA of 3.96, and below the 200-day MA of 4.71, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 39.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DMAC.

Diamedica Therapeutics Risk Analysis

Diamedica Therapeutics disclosed 59 risk factors in its most recent earnings report. Diamedica Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Diamedica Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
€6.40B20.09-1.30%2.15%0.06%-43.17%
65
Neutral
$378.93M-0.23%3087.25%97.11%
61
Neutral
$588.58M-61.35%10.10%-7.25%
53
Neutral
$432.34M-95.15%-10.43%
IKIKT
46
Neutral
$143.48M-79.02%-100.00%38.72%
42
Neutral
$155.67M-67.25%2.53%
39
Underperform
$108.03M-41.88%32.58%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DMAC
Diamedica Therapeutics
3.65
0.65
21.67%
TARA
Protara Therapeutics
3.03
0.72
31.17%
RZLT
Rezolute
4.97
0.67
15.58%
FULC
Fulcrum Therapeutics
7.85
0.76
10.72%
TNGX
Tango Therapeutics
5.70
-3.53
-38.24%
IKT
Inhibikase Therapeutics
2.01
0.70
53.44%

Diamedica Therapeutics Corporate Events

Executive/Board Changes
DiaMedica Therapeutics Appoints Daniel J. O’Connor to Board
Positive
Feb 24, 2025

On February 20, 2025, DiaMedica Therapeutics appointed Daniel J. O’Connor to its Board of Directors, recognizing his extensive experience in the biopharmaceutical industry. O’Connor’s leadership background, including his role in the acquisition of Ambrx Biopharma by Johnson & Johnson, positions him as a valuable asset to DiaMedica as it continues to advance its pipeline of treatments for acute ischemic stroke and preeclampsia.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 30, 2025