Diamedica Therapeutics (DMAC) AI Stock Analysis

• Market Cap: $179.25M
• Dividend Yield: N/A
• Average Volume (3M): 314.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: N/A
• EPS Growth: 2.53%
• Country: US
• Employees: 27
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.18
• Shares Outstanding: 42,883,465
• 10 Day Avg. Volume: 339,117
• 30 Day Avg. Volume: 314,362
• PEG Ratio: 1.04
• Price to Book (P/B): 5.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.14
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.95
• Enterprise Value/Gross Profit: -26.42
• Enterprise Value/Ebitda: -1.78
• 1Y Price Target: $12.33
• Price Target Upside: 171.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 42 Neutral
• 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

KOL Support

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, which is considered paramount to the safety profile of DM199.

Therapeutic Potential

Positive interim results from Part 1a of the Phase 2 study show therapeutic potential of DM199 across achieved pre-specified efficacy and safety endpoints.

Negative Factors

Market Potential

Early proof-of-concept signals in preeclampsia could be supportive of DM199 and reiterate a Buy rating.

Trial De-risking

The interim Phase 2 update provided de-risking for the PE program based on consistent demonstrated benefits, supporting trial continuation.

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

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	-30.00K	-25.00K	-24.00K	-21.00K
EBITDA	-24.38M	-19.31M	-13.98M	-13.62M	-12.24M
Net Income	-24.44M	-19.38M	-13.68M	-13.59M	-12.29M
Balance Sheet
Total Assets	46.34M	54.16M	34.40M	45.55M	28.09M
Cash, Cash Equivalents and Short-Term Investments	44.15M	52.90M	33.50M	45.11M	27.51M
Total Debt	340.00K	400.00K	469.00K	52.00K	118.00K
Total Liabilities	5.63M	3.10M	2.57M	1.53M	2.08M
Stockholders Equity	40.72M	51.06M	31.83M	44.02M	26.01M
Cash Flow
Free Cash Flow	-22.10M	-18.75M	-11.59M	-12.27M	-9.23M
Operating Cash Flow	-22.08M	-18.73M	-11.51M	-12.25M	-9.19M
Investing Cash Flow	8.56M	-18.30M	11.54M	-20.54M	-16.13M
Financing Cash Flow	11.99M	36.84M	-6.00K	30.09K	28.84M

Diamedica Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.54 is above the 20-day moving average (MA) of 3.86, above the 50-day MA of 3.94, and below the 200-day MA of 4.70, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 60.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DMAC.

Diamedica Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	€1.84B	34.32	10.52%	2.23%	7.10%	103.68%
FULC	59 Neutral	$412.94M	―	-0.23%	―	3087.25%	97.11%
TNGX	57 Neutral	$733.83M	―	-61.35%	―	10.10%	-7.25%
RZLT	53 Neutral	$468.91M	―	-95.15%	―	―	-10.43%
IKT	46 Neutral	$136.79M	―	-79.02%	―	-100.00%	38.72%
DMAC	42 Neutral	$179.25M	―	-67.25%	―	―	2.53%
TARA	39 Underperform	$118.83M	―	-41.88%	―	―	32.58%

Diamedica Therapeutics Corporate Events

DiaMedica Therapeutics Appoints Daniel J. O’Connor to Board

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.