DiaMedica Therapeutics Reports $10M Net Loss and Decrease in Total Assets for Q1 2026

DiaMedica Therapeutics Inc. reported a net loss of $10.0 million for the three months ended March 31, 2026, compared to a net loss of $7.7 million for the same period in 2025. The increase in losses is attributed primarily to higher research and development expenses, which rose to $8.0 million from $5.7 million year-over-year. This increase reflects ongoing costs associated with the ReMEDy2 clinical trial and additional reproductive toxicity testing for the company's lead product candidate, DM199, aimed at treating preeclampsia (PE) and fetal growth restriction (FGR). General and administrative expenses remained relatively stable at $2.5 million for both periods.

As of March 31, 2026, DiaMedica's total assets were reported at $53.1 million, a decrease from $61.4 million at the end of 2025. The decline in assets is primarily due to a reduction in cash and cash equivalents, which fell to $4.9 million from $15.6 million. The company also reported a working capital of $46.6 million, down from $55.5 million at the end of the previous fiscal year. The decrease in cash resources is largely attributed to the increased net loss and cash used in operating activities, which amounted to $9.1 million for the quarter.

In terms of operational developments, DiaMedica is advancing its clinical programs for DM199, which is currently undergoing trials for PE, FGR, and acute ischemic stroke (AIS). The company is conducting a Phase 2/3 adaptive design trial, the ReMEDy2 trial, which aims to enroll approximately 300 participants across multiple sites globally. However, the company has faced challenges with slower-than-expected site activations and participant enrollment, attributed to staffing shortages in medical facilities and competition for research staff. To address these issues, DiaMedica has expanded its internal clinical team and is bringing certain trial activities in-house.

Looking ahead, DiaMedica anticipates continued operating losses as it progresses with its clinical development efforts. The company expects its current cash resources to be sufficient to fund operations for at least the next 12 months. However, it acknowledges the potential need for additional capital to support ongoing research and development activities, particularly as it seeks to expand its clinical trials and navigate regulatory requirements. The company has previously financed its operations through equity sales and may consider additional funding options depending on market conditions and clinical data outcomes.