DiaMedica Therapeutics (DMAC 14.30%), a clinical-stage biopharmaceutical company focused on developing treatments for serious unmet medical needs, released its second quarter results on August 12, 2025. The headline news was a net loss per share of $(0.18) (GAAP) for the quarter, which surpassed the analyst estimate of $(0.19) (GAAP). No revenue was reported as expected, consistent with its pre-commercial status. Operating expenses were higher compared to the same period in the prior year, yet the company achieved key clinical milestones and the closing of a $30.1 million private placement in July 2025, securing a financial runway well into the second half of 2027. Overall, the period featured notable progress in DiaMedica's drug pipeline and financial position, balanced by increased costs typical for its development stage.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.18) | $(0.19) | $(0.13) | (38.5%) |
| Revenue (GAAP) | $0.0 | $0.0 | $0.0 | — |
| Research and Development Expense | $5.8 million | $3.9 million | 48.7% | |
| General and Administrative Expense | $2.2 million | $1.7 million | 29.4% | |
| Net Loss | $7.7 million | $5.1 million | 50.8% | |
| Cash, Cash Equivalents & Marketable Securities (end of period) | $30.0 million | N/A | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Company Overview and Recent Focus
DiaMedica is charting a path to develop novel therapies for diseases with limited treatment options. Its lead product, DM199, is a recombinant protein designed to treat acute ischemic stroke (AIS) and preeclampsia (PE). Both conditions represent significant unmet needs, with few safe or effective treatments currently available.
DiaMedica's current strategic priorities center on successfully advancing clinical trials in these indications. The company aims to demonstrate DM199's efficacy and safety in well-designed studies and lay groundwork for future commercial partnerships. Its ongoing ability to raise capital and invest in clinical development remains critical, alongside protecting its intellectual property.
Quarterly Highlights and Business Developments
The latest quarter marked an important step for DiaMedica's DM199 program in preeclampsia. In July 2025, the company reported positive interim data from Part 1a of its Phase 2 clinical trial in women at risk for early delivery due to preeclampsia. The study met all pre-specified safety and efficacy endpoints for Part 1a of the Phase 2 DM199 preeclampsia trial, as reported in July 2025. DM199 showed statistically significant reductions in systolic and diastolic blood pressure in Part 1a of the Phase 2 preeclampsia trial, and no evidence of crossing the placental barrier. The absence of placental transfer is a critical safety aspect in pregnancy drug development. The trial also observed improved uterine artery blood flow in Part 1a of the Phase 2 preeclampsia study, supporting future exploration in fetal growth restriction.
In its stroke program, DiaMedica continued enrolling patients in the ReMEDy2 Phase 2/3 clinical trial for acute ischemic stroke, with an interim analysis planned for Q2 2026. The company made notable progress in site expansion and recruitment, reporting encouraging participation from both U.S. and international centers. Management highlighted focused site engagement and a strategic addition to the clinical team as drivers of this momentum.
Financially, operating expenses remained elevated due to expanding research activities and administrative needs. Research and development expense (GAAP) climbed 48.7% year over year, driven by increased clinical trial activity, especially related to DM199, global expansion, and team growth. General and administrative spending also grew but at a slower pace, partially offset by reduced legal fees. These investments increased the net loss (GAAP) to $7.7 million, up from $5.1 million in the prior year period. The larger net loss underscored the company's continued commitment to progress in its late-stage clinical pipeline.
DiaMedica raised $30.1 million through a private placement in July 2025, boosting its cash and short-term investments to approximately $60 million on a pro forma basis as of June 30, 2025. This strengthened liquidity position should allow the company to fund planned studies and operations well into the second half of 2027. The company also noted its recent inclusion in the Russell 2000 and 3000 Indexes, raising its visibility among institutional investors. Key leadership changes included the appointment of a new chief medical officer with significant experience in drug development for preeclampsia.
Product Pipeline, Strategy, and Key Success Factors
DiaMedica is developing DM199, a recombinant KLK1 protein. KLK1, or tissue kallikrein, is a protein that regulates blood flow and blood pressure. DM199 is designed for two main indications: treating acute ischemic stroke and managing preeclampsia and related fetal growth restriction. There are no approved pharmacologic treatments for preeclampsia in any marketed territory worldwide, and treatment options for acute ischemic stroke are limited, making trial success a central driver for DiaMedica's long-term prospects.
In stroke, the ReMEDy2 study is a pivotal Phase 2/3 adaptive trial, with a primary endpoint focused on physical recovery measured by the modified Rankin Scale. The company is also preparing to expand its preeclampsia program beyond South Africa into the United States, as indicated by management's intention to submit an investigational new drug (IND) application for DM199 in the U.S. to further evaluate its potential in preeclampsia and fetal growth restriction, with regulatory filings anticipated to support broader trials. Strategic partnerships for commercialization are planned, as DM199 production and distribution at commercial scale require outside expertise and resources. Strong patent protection and manufacturing partnerships are also cited as critical by management.
Outlook and Investor Considerations
Management did not offer quantitative forward guidance for future quarters or the year, except to state that cash resources now extend into the second half of 2027, based on the company's current cash, cash equivalents, and short-term investments as of June 30, 2025, including net proceeds from the July 2025 private placement. The next major milestone will be the planned U.S. investigational new drug (IND) application for DM199 in preeclampsia and the interim Phase 2/3 data readout in acute ischemic stroke.
DMAC does not currently pay a dividend. Looking ahead, key issues for investors include the continued rise of R&D costs and ongoing clinical and regulatory milestones.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
