In This Article:
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Cash and Investments: $37.3 million as of March 31, 2025.
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Current Liabilities: $4.7 million as of March 31, 2025.
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Working Capital: $32.8 million as of March 31, 2025.
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Net Cash Used in Operating Activities: $7.1 million for Q1 2025.
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Research and Development Expenses: $5.7 million for the three months ended March 31, 2025.
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General and Administrative Expenses: $2.5 million for the three months ended March 31, 2025.
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Net Other Income: $443,000 for the three months ended March 31, 2025.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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DiaMedica Therapeutics Inc (NASDAQ:DMAC) is making substantial progress in its clinical development programs, particularly in the preeclampsia and stroke areas.
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The company is close to identifying a target dose for its phase 2 preeclampsia trial, with preliminary top-line results expected between June and July.
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Enrollment in the stroke program is progressing steadily, with participant enrollment reaching between the 20th and 25th percentile mark.
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The company has engaged an experienced stroke neurologist to support site engagement and maintain enrollment momentum in the Remedy II trial.
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DiaMedica Therapeutics Inc (NASDAQ:DMAC) has a strong financial position with a total combined cash and investments of $37.3 million as of March 31, 2025, providing a runway into Q3 of 2026.
Negative Points
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The company's net cash used in operating activities increased to $7.1 million for the first quarter of 2025, up from $6.7 million in the same period of 2024.
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Research and development expenses rose significantly to $5.7 million for the three months ended March 31, 2025, compared to $3.7 million for the same period in 2024.
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General and administrative expenses increased to $2.5 million for the three months ended March 31, 2025, from $2.1 million in the same period of 2024.
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The company anticipates that R&D expenses will moderately increase in future periods due to the continuation of the Remedy II trial and expansion of the DM 199 clinical development program.
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Interest income decreased, resulting in a net other income of $443,000 for the three months ended March 31, 2025, compared to $597,000 for the same period in 2024.
Q & A Highlights
Q: Can you clarify the laboratory test results that are affecting the readout timing between June and July? Is it primarily the test for DM 199 crossing the placental barrier? A: Yes, the main item is the placental transfer. We have an assay being finalized to detect lower limits, and it's a matter of time for them to run it. We provided a range for when we anticipate the results. - Rick Pauls, President & CEO
Q: What are the triggers for parts 2 and 3 of the preeclampsia study? A: For fetal growth restrictions, if we see dilation of the intrauterine arteries, our investigators are prepared to move ahead with that cohort. More details on part two will be shared when we release the results. - Rick Pauls, President & CEO
Q: Can you discuss the anticipated read-through or de-risking between the initial preeclampsia data and how it could translate to AIS development and the Remedy II trial? A: These are unique indications, but a positive effect in preeclampsia confirms the protein's activity. The protein is used in Asia for stroke and preeclampsia, which supports our rationale for both indications. - Rick Pauls, President & CEO
Q: Can you provide details on stroke program enrollment, particularly high-volume centers? A: We see momentum with high-enrolling sites achieving 1-2 patients per site per month. We're focusing on these sites to build momentum and are currently above our plan. - Rick Pauls, President & CEO
Q: Have you expanded the number of centers for the stroke program, and is there international enrollment? A: We are in the mid-30s for sites, focusing on high-enrolling ones. We have sites in Georgia (country) performing well. - Rick Pauls, President & CEO
Q: Will parts 2 and 3 of the preeclampsia study be based in South Africa, or will there be a US component? A: Parts 2 and 3 are under the same protocol, so no need for new regulatory clearance. We plan to expand to the US and globally in the future. - Rick Pauls, President & CEO
Q: Are you seeing an increase in enrollment rates for the stroke program? A: Yes, since the last earnings call, we've seen an encouraging uptick in enrollment rates. - Rick Pauls, President & CEO
Q: What is the financial outlook for DiaMedica, and how long is the cash runway? A: As of March 31, 2025, we have $37.3 million in cash and investments, providing a runway into Q3 of 2026. - Scott Kellen, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.