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Diamedica Therapeutics Inc (DMAC)
NASDAQ:DMAC
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Diamedica Therapeutics
(NASDAQ:DMAC)
39Underperform
Positive Factors
Regulatory Advantage
The application for Orphan Drug Designation for early-onset preeclampsia could provide additional regulatory and financial advantages for DiaMedica.
Strategic Takeout Potential
Positive preeclampsia results could solidify the company as a likely takeout candidate, potentially catalyzed by positive stroke data.
Negative Factors
Delay Concerns
The delay in the ReMEDy2 interim analysis readout is not an ideal message.
Enrollment Risks
The ongoing Phase 2/3 ReMEDy2 trial of DM199 in acute ischemic stroke patients has refined its study protocol to incorporate thrombolytic non-responders to expand the eligible patient pool and facilitate enrollment.
Diamedica Therapeutics (DMAC) vs. S&P 500 (SPY)
Market Cap
$163.71M
Dividend YieldN/A
Average Volume (3M)96.38K
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue GrowthN/A
EPS Growth2.53%
CountryUS
Employees27
SectorHealthcare
Sector Strength72
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.60
Shares Outstanding42,855,660
10 Day Avg. Volume111,226
30 Day Avg. Volume96,380
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-8.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.50Price Target Upside174.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Diamedica Therapeutics Business Overview & Revenue Model
Company DescriptionDiamedica Therapeutics (DMAC) is a clinical-stage biopharmaceutical company focused on developing novel treatments for neurological and kidney diseases. The company leverages its expertise in therapeutic innovation to address unmet medical needs, primarily within the sectors of neurology and nephrology. Diamedica's core products include investigational therapies aimed at treating acute ischemic stroke and chronic kidney disease.
How the Company Makes MoneyDiamedica Therapeutics generates revenue primarily through strategic partnerships, collaborations, and licensing agreements with larger pharmaceutical companies. These arrangements often include upfront payments, milestone payments based on the achievement of certain development or regulatory goals, and royalties on future sales of successfully commercialized products. The company also seeks funding through public and private financing to support its research and development efforts, which is crucial for advancing its pipeline candidates through clinical trials.
Diamedica Therapeutics Financial Statement Overview
Summary
Diamedica Therapeutics shows typical financial indicators of a developmental biotech firm with no revenue and increasing net losses, posing significant concerns. Despite a strong equity ratio and low leverage, diminishing cash reserves and negative cash flows highlight financial challenges.Income Statement
Diamedica Therapeutics has consistently reported zero revenue, reflecting its developmental stage focus typical in the biotechnology industry. The company incurred significant net losses over the years, with a noticeably increasing net loss from $13.6M in 2022 to $24.4M in 2024. The lack of revenue growth and persistent negative net income are significant concerns.10
Very Negative
Balance Sheet
The company's balance sheet shows a high equity ratio, with stockholders' equity consistently making up a significant portion of total assets (87.9% in 2024). The debt-to-equity ratio remains low, indicating limited leverage, which is positive. However, declining total assets from $54.2M in 2023 to $46.3M in 2024, alongside decreasing cash reserves, may constrain future financial flexibility.45
Neutral
Cash Flow
Diamedica's cash flow situation highlights ongoing operational cash outflows, with operating cash flow deteriorating from -$18.7M in 2023 to -$22.1M in 2024. Free cash flow has also been negative, reflecting the cash burn typical in biotech firms without commercial products. The company relies heavily on financing activities to support its cash flow needs, which may not be sustainable long-term.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 0.00 | -30.00K | -25.00K | -24.00K | -21.00K | EBIT |
| 0.00 | -21.27M | -14.00M | -13.65M | -12.70M | EBITDA |
| 0.00 | -19.31M | -13.98M | -13.62M | -12.24M | Net Income Common Stockholders |
| -24.44M | -19.38M | -13.68M | -13.59M | -12.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 44.15M | 52.90M | 33.50M | 45.11M | 27.51M | Total Assets |
| 46.34M | 54.16M | 34.40M | 45.55M | 28.09M | Total Debt |
| 340.00K | 400.00K | 469.00K | 52.00K | 118.00K | Net Debt |
| -2.69M | -4.14M | -4.26M | -4.66M | -7.29M | Total Liabilities |
| 5.63M | 3.10M | 2.57M | 1.53M | 2.08M | Stockholders Equity |
| 40.72M | 51.06M | 31.83M | 44.02M | 26.01M |
| Cash Flow | Free Cash Flow | |||
| -22.10M | -18.75M | -11.59M | -12.27M | -9.23M | Operating Cash Flow |
| -22.08M | -18.73M | -11.51M | -12.25M | -9.19M | Investing Cash Flow |
| 8.56M | -18.30M | 11.54M | -20.54M | -16.13M | Financing Cash Flow |
| 11.99M | 36.84M | -6.00K | 30.09K | 28.84M |
Diamedica Therapeutics Technical Analysis
Negative
3.82
Price Trends
5.82
Negative
5.40
Negative
4.55
Negative
Market Momentum
-0.49
Positive
22.94
Positive
1.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DMAC, the sentiment is Negative. The current price of 3.82 is below the 20-day moving average (MA) of 5.32, below the 50-day MA of 5.82, and below the 200-day MA of 4.55, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 22.94 is Positive, neither overbought nor oversold. The STOCH value of 1.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DMAC.
Diamedica Therapeutics Risk Analysis
Diamedica Therapeutics disclosed 59 risk factors in its most recent earnings report. Diamedica Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Diamedica Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $5.78B | ― | -231.63% | ― | 42.53% | -15.29% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 17.48% | 1.17% | |
48 Neutral | $398.26M | ― | -58.54% | ― | ― | -47.28% | |
48 Neutral | $195.91M | ― | -36.38% | ― | 88.63% | 18.78% | |
43 Neutral | $6.97M | ― | -248.97% | ― | ― | 57.83% | |
39 Underperform | $163.71M | ― | -53.27% | ― | ― | 2.53% |
* Healthcare Sector Average
Performance Comparison
DMAC
Diamedica Therapeutics
3.82
1.09
39.93%
ALDX
Aldeyra Therapeutics
5.75
2.48
75.84%
SNGX
Soligenix
2.21
-6.75
-75.33%
AXSM
Axsome Therapeutics
116.63
39.64
51.49%
ACIU
AC Immune SA
1.87
-0.86
-31.50%
Diamedica Therapeutics Earnings Call Summary
Earnings Call Date: Mar 17, 2025 | % Change Since: -36.23% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in the preeclampsia and stroke programs, particularly with the expansion of clinical sites and positive safety reviews. However, challenges such as delayed enrollment in the stroke program and increased R&D expenses were noted. Despite these challenges, the overall sentiment leans towards optimism due to the advancements and financial stability.Highlights
Progress in Preeclampsia Program
DiaMedica obtained ethics approval and began dosing preeclamptic mothers in their DM199 study, marking the first study of DM199 in a pregnancy-related condition. This highlights DM199's potential as a treatment for preeclampsia, a condition with no FDA-approved treatments.
Expansion of Stroke Program
Activated 30 clinical sites for the stroke study, with plans to expand globally. The study protocol has been updated to include more patient populations, potentially increasing enrollment.
Strong Financial Position
DiaMedica reported a total combined cash and investments of $44.1 million, providing a financial runway into Q3 of 2026.
Positive Safety Review
The Data Safety Monitoring Board completed a comprehensive safety review, finding no significant safety concerns, allowing the ReMEDy2 trial to continue without modification.
Lowlights
Delayed Enrollment in Stroke Program
Enrollment for the ReMEDy2 trial has been slower than anticipated, with expectations for interim analysis now pushed to the first half of 2026 due to underestimated start-up time and post-COVID staffing challenges.
Increased R&D Expenses
Research and development expenses increased to $19.1 million for 2024, up from $13.1 million in the prior year, driven by the continuation of the ReMEDy2 clinical trial and increased manufacturing activities.
Company Guidance
During the DiaMedica Therapeutics Full Year 2024 Conference Call, significant guidance was provided regarding the company's clinical development programs and financial outlook. For the preeclampsia program, the company highlighted the progress in their Phase 2 trial, including ethics approval and initial dosing of DM199, emphasizing its safety profile and potential to lower blood pressure without crossing the placental barrier. They anticipate results from Part 1A of the trial in the second quarter of 2025. In their stroke program, 30 clinical sites have been activated with a protocol that includes broader patient criteria and improvements in drug storage logistics, aiming for an interim analysis in the first half of 2026. Financially, DiaMedica reported a total combined cash and investments of $44.1 million as of December 31, 2024, with a net cash used in operating activities of $22.1 million for the year. The company projects a financial runway into the third quarter of 2026.Diamedica Therapeutics Corporate Events
Executive/Board Changes
DiaMedica Therapeutics Appoints Daniel J. O’Connor to Board
Positive
Feb 24, 2025
On February 20, 2025, DiaMedica Therapeutics appointed Daniel J. O’Connor to its Board of Directors, recognizing his extensive experience in the biopharmaceutical industry. O’Connor’s leadership background, including his role in the acquisition of Ambrx Biopharma by Johnson & Johnson, positions him as a valuable asset to DiaMedica as it continues to advance its pipeline of treatments for acute ischemic stroke and preeclampsia.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.