DMAC — DiaMedica Therapeutics Inc.

DMAC Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Cash Position: As of September 30, 2025, DiaMedica had cash, cash equivalents, and short-term investments totaling $55.3 million, up from $30 million as of June 30, 2025, and $44.1 million at the end of the previous year.
• Net Cash Used: The company reported a net cash usage of $21.3 million for operating activities in the first nine months of 2025, compared to $15.6 million for the same period in 2024.
• R&D Expenses: R&D expenses were $6.4 million for Q3 2025 and $17.9 million for the nine-month period, up from $5 million and $12.6 million in the prior year, reflecting ongoing clinical trial activities.
• General and Administrative Expenses: These expenses increased to $2.6 million for Q3 and $7.3 million for the nine-month period, attributed to higher personnel costs and non-cash share-based compensation.
• Net Loss: The net losses were $8.6 million for Q3 and $24 million for the nine-month period, compared to $6.3 million and $16.5 million in the same periods of 2024.

2. Strategic Updates and Business Highlights

• DM199 Clinical Progress: The company reported positive interim results from its Phase 2 trial for DM199 in preeclampsia, showing significant reductions in blood pressure and improved placental perfusion.
• Expansion of Clinical Trials: DMAC is expanding its clinical trials to include early onset preeclampsia and fetal growth restriction cohorts, with plans for a U.S. Phase 2 trial expected to start soon.
• Stroke Program: The ReMEDy2 stroke trial is progressing, although enrollment rates are lower than anticipated due to changes in stroke referral patterns. The company is implementing strategies to address these challenges.

3. Forward Guidance and Outlook

• Funding Outlook: The current cash position is expected to fund clinical studies and operations into the second half of 2027.
• Upcoming Milestones: The company anticipates completing the expansion cohort for preeclampsia in the first half of 2026 and expects to conduct an interim analysis of the stroke trial in the second half of 2026.

4. Bad News, Challenges, or Points of Concern

• Enrollment Challenges: The ReMEDy2 stroke trial is facing lower-than-expected enrollment rates, attributed to changes in patient referral patterns and the use of tele-neurology, which may delay progress.
• Increased Operating Losses: The company reported higher net losses compared to the previous year, raising concerns about financial sustainability if losses continue to grow.

5. Notable Q&A Insights

• KOL Engagement: The management discussed ongoing efforts to engage key opinion leaders (KOLs) in the preeclampsia space, with positive feedback regarding DM199's safety profile and efficacy.
• Protocol Amendments: Adjustments to the trial protocols were discussed, including a focus on intravenous administration for Part 1b of the preeclampsia trial to better manage blood pressure before delivery.
• Enrollment Expectations: Management acknowledged the need to revise enrollment forecasts based on actual data from current clinical sites rather than historical rates, indicating a more cautious approach moving forward.

This summary encapsulates the key points from the earnings call, highlighting both the progress and challenges faced by DiaMedica Therapeutics in Q3 2025.