DiaMedica Therapeutics Reports $7.7 Million Net Loss in Q1 2025

DiaMedica Therapeutics Inc. reported a net loss of $7.7 million for the first quarter of 2025, an increase from a loss of $5.2 million during the same period in 2024. The company's operating expenses rose to $8.1 million, up from $5.7 million year-over-year, primarily driven by increased research and development (R&D) costs associated with ongoing clinical trials for its lead product candidate, DM199. R&D expenses alone reached $5.7 million, compared to $3.7 million in the prior year, reflecting the costs of the ReMEDy2 trial and other development activities. General and administrative expenses also increased to $2.5 million from $2.1 million, largely due to higher share-based compensation.

As of March 31, 2025, DiaMedica's total assets were reported at $38.8 million, a decrease from $46.3 million at the end of 2024. The decline in assets was attributed to cash outflows from operating activities, which totaled $7.1 million for the quarter, compared to $6.7 million in the same quarter last year. The company had cash, cash equivalents, and marketable securities amounting to $37.3 million, down from $44.1 million at the end of the previous fiscal year. The working capital also decreased to $32.8 million from $39.2 million.

In terms of operational developments, DiaMedica is advancing its clinical programs for DM199, which is being evaluated for the treatment of preeclampsia (PE) and acute ischemic stroke (AIS). The company is currently conducting a Phase 2/3 adaptive design trial, known as the ReMEDy2 trial, which aims to enroll approximately 300 participants across 100 sites globally. However, the company has faced challenges with slower-than-expected site activations and participant enrollment, attributed to staffing shortages in hospitals and competition for research staff. To address these issues, DiaMedica has expanded its internal clinical team and is actively working to enhance site activations.

Looking ahead, DiaMedica anticipates continued operating losses as it progresses with its clinical trials and seeks regulatory approvals for DM199. The company expects its current cash resources to be sufficient to fund operations for at least the next 12 months, but acknowledges the potential need for additional capital to support ongoing and future development activities. The success of its clinical trials and the ability to secure further financing will be critical for the company's future operations and growth.