DiaMedica Therapeutics reported a Q3 2025 net loss of $8.62 million, up from a $7.70 million loss in the prior quarter and a $6.30 million loss in the same period last year. The loss per share was $0.17, slightly below the consensus estimate of $-0.16, marking a modest miss of $0.01. The widening loss reflects a $1.44 million increase in operating expenses, driven largely by higher research and development costs associated with the company’s lead candidate, DM199, and increased personnel and share‑based compensation.
The company’s liquidity position improved markedly. Cash and cash equivalents rose to $3.326 million from $30 million at the end of Q2, while marketable securities increased to $51.992 million, bringing total cash‑like assets to $55.318 million. This represents a significant jump from the $30 million balance reported in June 2025 and provides a runway that extends into the second half of 2027, far beyond the earlier projection of Q3 2026.
Business highlights for the quarter include the completion of cohort 10 in the investigator‑sponsored preeclampsia trial and the initiation of enrollments in the Part 1a expansion cohort. A productive in‑person pre‑IND meeting with the FDA was held, and the company is awaiting the minutes. Enrollment in the ReMEDy2 Phase 2/3 acute ischemic stroke trial is progressing, with the company approaching 50% of its interim target of 200 patients.
Management emphasized that the increased R&D spend is a strategic investment in advancing the pipeline. President and CEO Rick Pauls noted, “We are pleased to see the completion of cohort 10 and the initiation of enrollments in the Part 1a expansion cohort in the ongoing Phase 2 investigators‑sponsored trial in preeclampsia. Our pre‑IND meeting with the FDA was productive, and we are awaiting the minutes.” He added that the ReMEDy2 trial “continues to progress as we are nearing 50% of our interim target of 200 patients.”
The market reaction was muted, with the stock trading slightly lower in after‑hours. The modest EPS miss and higher net loss, driven by intensified R&D investment, tempered enthusiasm despite the company’s strong cash position and clinical progress. Investors weighed the short‑term financial impact against the long‑term potential of DM199 in two high‑unmet‑need indications.
The company’s guidance remains unchanged, with no new revenue projections as it remains a clinical‑stage biopharma. Analysts expect continued investment in R&D and anticipate that the company’s extended runway will support the next milestones in its preeclampsia and acute ischemic stroke programs.
The extended cash runway into 2027, combined with steady clinical enrollment, positions DiaMedica to pursue regulatory milestones without immediate financing pressure, while the EPS miss underscores the cost intensity of early‑stage development.
The company’s focus on two high‑unmet‑need indications—preeclampsia and acute ischemic stroke—provides a clear strategic narrative, and the management’s emphasis on regulatory engagement and trial progress signals confidence in the pipeline’s trajectory.
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