Summary of DiaMedica Therapeutics Q2 2026 Earnings Call

1Key Financial Results and Metrics

Cash Position: As of June 30, 2026, DiaMedica reported cash, cash equivalents, and short-term investments of $43.5 million, down from $59.9 million at the end of 2025.

Current Liabilities: Increased to $6.6 million from $5.1 million.

Working Capital: Decreased to $37.7 million from $55.5 million.

Net Cash Used: Operating activities consumed $17.2 million in the first half of 2026, compared to $14.7 million in the same period in 2025.

R&D Expenses: Increased to $8.2 million for Q2 2026, up from $5.8 million in Q2 2025, primarily due to clinical trial expansions and increased personnel costs.

G&A Expenses: Slight increase to $2.3 million in Q2 2026 from $2.2 million in Q2 2025.

2Strategic Updates and Business Highlights

Clinical Progress:

Completed enrollment in the first cohort of the Phase II early onset fetal growth restriction (FGR) study, with six participants treated.

Continued preparations for the Phase II early onset preeclampsia study in Canada and the U.K.

The ReMEDy2 trial for acute ischemic stroke is approaching 200 patients, with an interim analysis expected in Q1 2027.

Regulatory Developments: Health Canada authorized the initiation of the early onset preeclampsia study, with plans to expand to the U.K. and U.S. pending regulatory approvals.

Key Opinion Leader Event: Scheduled for September to discuss DM199's potential in treating FGR and share initial cohort results.

3Forward Guidance and Outlook

Cash Runway: The company believes its current cash position will fund operations and clinical studies through 2027.

R&D Expense Expectations: Anticipates moderate increases in R&D expenses as clinical programs expand.

Upcoming Milestones: Focus on achieving interim analysis for ReMEDy2 and advancing preeclampsia and FGR studies.

4Bad News, Challenges, or Points of Concern

Enrollment Challenges: Noted a slowdown in patient enrollment for the ReMEDy2 trial in July, although overall enrollment has surpassed 85% of the target.

Increased Cash Burn: The rise in net cash used in operations indicates heightened spending, which could impact financial stability if not managed.

Regulatory Hurdles: The need for additional studies to satisfy FDA requirements for the U.S. IND submission could delay progress.

5Notable Q&A Insights

Dosing Strategy: Management clarified the focus on mid-range dosing for late-onset preeclampsia due to receptor desensitization issues observed at higher doses, while exploring higher doses for early onset preeclampsia.

FGR Inclusion Criteria: The study targets severe FGR patients (3% or less percentile in body weight), emphasizing the potential to extend gestational days to improve outcomes.

IND Submission Timeline: The company expects to submit the U.S. IND application following the completion of a pharmacokinetic study in September, contingent on positive results. This summary encapsulates the key points from DiaMedica's Q2 2026 earnings call, highlighting financial performance, strategic initiatives, and future outlook while addressing challenges and insights from the Q&A session.