DMAC — DiaMedica Therapeutics Inc.

DiaMedica Therapeutics Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Cash, cash equivalents, and short-term investments stood at $59.9 million as of December 31, 2025, up from $44.1 million in 2024.
• Current liabilities decreased slightly to $5.1 million from $5.4 million year-over-year.
• Working capital increased to $55.5 million compared to $39.2 million in 2024.
• Net cash used in operating activities rose to $29.1 million from $22.1 million in 2024, attributed to higher net losses.
• Research and development expenses increased to $24.6 million from $19.1 million, driven by ongoing clinical trials and expansion efforts.
• General and administrative expenses rose to $9.8 million from $7.6 million, influenced by increased compensation costs and investor relations expenses.

2. Strategic Updates and Business Highlights:

• Significant progress was made in the clinical pipeline, particularly with DM199, aimed at treating preeclampsia and acute ischemic stroke.
• Positive interim results from the preeclampsia program indicated DM199's potential as a first-in-class therapy, showing significant reductions in blood pressure and improved uteroplacental perfusion without crossing the placental barrier.
• Enrollment in the preeclampsia trial is ongoing, with plans for a global Phase II trial in early onset preeclampsia expected to commence in the second half of 2026.
• The ReMEDy2 trial for stroke showed increased enrollment momentum, with nearly 70% of the required 200 participants enrolled, and an interim analysis is expected in the second half of 2026.

3. Forward Guidance and Outlook:

• The company anticipates its cash position will support clinical studies and operations through the end of 2027.
• Guidance for the completion of the interim analysis for the stroke program remains on track for the second half of 2026.
• Further updates on the preeclampsia program and potential expansion into chronic kidney disease (CKD) treatments are expected as clinical data evolves.

4. Bad News, Challenges, or Points of Concern:

• The company faced staffing challenges at clinical trial sites, which contributed to slower enrollment in the preeclampsia expansion cohort. Additional financial support and hiring efforts are underway to address this.
• There is uncertainty regarding the FDA's requirements for alternative animal models for reproductive toxicology studies, which could delay progress.
• Increased operating losses and expenses may raise concerns about financial sustainability if not balanced with successful clinical outcomes.

5. Notable Q&A Insights:

• Management expressed confidence that DM199 will not cross the placental barrier based on previous studies, which is crucial for its safety profile in preeclampsia.
• The interim analysis for the stroke program could lead to resizing the study based on efficacy, with a potential range of 300 to 728 participants.
• The company is focusing on selecting clinical sites with experience in preeclampsia to ensure proper management of maternal and fetal health during trials.
• There is excitement about DM199's potential in treating resistant hypertension in CKD patients, although the current focus remains on preeclampsia and stroke programs.

Overall, DiaMedica Therapeutics demonstrated progress in its clinical pipeline and financial health, though it faces challenges in clinical trial enrollment and regulatory requirements.