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Diamedica Therapeutics Inc (DMAC)
NASDAQ:DMAC
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Diamedica Therapeutics
(NASDAQ:DMAC)
Rating:42Neutral
Price Target:―
Positive Factors
Clinical trial results
The announcement of positive interim results from the Phase 2 preeclampsia study of DM199 showed statistically significant and clinically meaningful reductions in blood pressure, indicating potential therapeutic benefits.
Expert endorsement
The company's hosted KOL event on pregnancy complication preeclampsia showed specialist enthusiasm for a viable preeclampsia treatment, which currently lacks FDA-approved therapy.
Safety profile
No demonstrated placental transfer across all cohorts and no early labor inductions indicate critical safety for DM199, enhancing its profile for treating preeclampsia.
Negative Factors
Clinical trial scope
The current Phase 2/3 ReMEDy2 trial in AIS patients has previously refined its protocol to incorporate thrombolytic non-responders to expand the eligible patient pool.
Diamedica Therapeutics (DMAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$311.68M
Dividend YieldN/A
Average Volume (3M)397.90K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue GrowthN/A
EPS Growth-31.78%
CountryUS
Employees27
SectorHealthcare
Sector Strength51
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.18
Shares Outstanding51,688,910
10 Day Avg. Volume387,215
30 Day Avg. Volume397,900
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.44
Enterprise Value/Revenue9.98
Enterprise Value/Gross Profit19.68K
Enterprise Value/Ebitda-4.43
Forecast
1Y Price Target
$12.33Price Target Upside114.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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:Aug 12, 2025
(Q2-2025)
| % Change Since: 10.34%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in DiaMedica's ongoing clinical programs, particularly in preeclampsia and stroke, alongside successful capital raising and strategic additions to the team and market indices. However, the company faces financial challenges with increased net losses and rising operational expenses.Q2-2025 Updates
Positive Updates
Positive Interim Results for Preeclampsia Program
Announced positive interim results from Part 1a of the Phase II trial of DM199 for preeclampsia, showing statistically significant reduction in systolic and diastolic blood pressure without placental transfer, indicating potential efficacy and safety.
Advancement in Stroke Program
Presented at the European Stroke Organization Conference with promising results from the ReMEDy1 Phase II trial. Enrollment for the ongoing ReMEDy2 trial is progressing well, with an expected interim analysis in Q2 2026.
Successful $30 Million Private Placement
Completed a $30 million private placement, extending the cash runway into the second half of 2027, allowing further development of stroke and preeclampsia programs.
Addition to Russell 2000 and Russell 3000 Indexes
DiaMedica was added to these indexes, enhancing visibility among institutional investors.
Appointment of Dr. Julie Krop as Chief Medical Officer
Dr. Krop, with extensive experience in biopharma, joined DiaMedica, bringing expertise in the development of treatments for severe preeclampsia.
Negative Updates
Increased Net Loss
Net losses increased to $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.
Rising Research and Development Expenses
R&D 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 due to the ReMEDy2 trial and clinical team expansion.
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, due to additional share-based compensation and personnel costs.
Company Guidance
During DiaMedica Therapeutics' Q2 2025 earnings call, significant progress was highlighted in their preeclampsia program, particularly with the recombinant KLK1 protein candidate, DM199. Interim results from Part 1a of a Phase II trial showed statistically significant reductions in systolic and diastolic blood pressure, improved uterine artery blood flow, and enhanced placental perfusion. The trial is advancing to Cohort 10, with plans to enroll three concurrent cohorts addressing preeclampsia and fetal growth restriction. The company also completed a $30 million private placement to extend its cash runway into 2027, supporting ongoing trials for both stroke and preeclampsia programs. Financially, DiaMedica reported a net loss of $15.4 million for the first half of 2025, with R&D expenses rising to $11.5 million due to trial expansions. The call also noted progress in the ReMEDy2 stroke trial, with enrollment tracking above 25% and an expected interim analysis in Q2 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
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.10
Very Negative
Balance Sheet
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.45
Neutral
Cash Flow
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.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.80M | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | 7.00K | -39.00K | -30.00K | -25.00K | -24.00K | -21.00K |
| EBITDA | -31.10M | -24.38M | -19.31M | -13.98M | -13.62M | -12.24M |
| Net Income | -29.58M | -24.44M | -19.38M | -13.68M | -13.59M | -12.29M |
Balance Sheet | ||||||
| Total Assets | 31.47M | 46.34M | 54.16M | 34.40M | 45.55M | 28.09M |
| Cash, Cash Equivalents and Short-Term Investments | 30.04M | 44.15M | 52.90M | 33.50M | 45.11M | 27.51M |
| Total Debt | 292.00K | 340.00K | 400.00K | 469.00K | 52.00K | 118.00K |
| Total Liabilities | 4.30M | 5.63M | 3.10M | 2.57M | 1.53M | 2.08M |
| Stockholders Equity | 27.17M | 40.72M | 51.06M | 31.83M | 44.02M | 26.01M |
Cash Flow | ||||||
| Free Cash Flow | -25.68M | -22.10M | -18.75M | -11.59M | -12.27M | -9.23M |
| Operating Cash Flow | -25.65M | -22.08M | -18.73M | -11.51M | -12.25M | -9.19M |
| Investing Cash Flow | 15.20M | 8.56M | -18.30M | 11.54M | -20.54M | -16.13M |
| Financing Cash Flow | 495.00K | 11.99M | 36.84M | -6.00K | 30.09M | 28.84M |
Diamedica Therapeutics Technical Analysis
Positive
5.76
Price Trends
4.29
Positive
4.11
Positive
4.76
Positive
Market Momentum
0.42
Negative
65.91
Neutral
77.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DMAC, the sentiment is Positive. The current price of 5.76 is above the 20-day moving average (MA) of 4.94, above the 50-day MA of 4.29, and above the 200-day MA of 4.76, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 65.91 is Neutral, neither overbought nor oversold. The STOCH value of 77.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DMAC.
Diamedica Therapeutics Risk Analysis
Diamedica Therapeutics disclosed 68 risk factors in its most recent earnings report. Diamedica Therapeutics reported the most risks in the "Finance & Corporate" 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $368.90M | ― | -30.00% | ― | -100.00% | -266.37% | |
54 Neutral | $753.23M | ― | -76.09% | ― | -42.84% | -17.32% | |
53 Neutral | $565.47M | ― | -95.15% | ― | ― | -1.69% | |
51 Neutral | $7.71B | -0.22 | -44.71% | 2.25% | 22.42% | -0.92% | |
46 Neutral | $130.40M | ― | -97.49% | ― | -100.00% | 62.82% | |
42 Neutral | $311.68M | ― | -73.41% | ― | ― | -31.78% | |
39 Underperform | $116.90M | ― | -43.02% | ― | ― | 48.80% |
* Healthcare Sector Average
Performance Comparison
DMAC
Diamedica Therapeutics
5.76
2.06
55.68%
TARA
Protara Therapeutics
3.22
1.02
46.36%
RZLT
Rezolute
6.55
2.21
50.92%
FULC
Fulcrum Therapeutics
6.64
-2.78
-29.51%
TNGX
Tango Therapeutics
7.22
-3.89
-35.01%
IKT
Inhibikase Therapeutics
1.72
0.31
21.99%
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.