DiaMedica Therapeutics (DMAC) Q2 2024 earnings summary

Executive summary

• Remedy 2 (ReMEDy2) trial site activation and enrollment momentum increased, with 13 sites now active and a focus on 15 high-potential U.S. centers for rapid enrollment; interim analysis enrollment (n=144) targeted for Q1 2025.

• DM199 program expanded to preeclampsia, with a globally recognized research team and a Phase 2 trial in South Africa expected to begin enrollment in Q4 2024; top-line results anticipated in H1 2025.

• Completed $11.8M–$12M private placement in June 2024, raising $11.7M net proceeds to support ongoing and planned clinical trials, extending cash runway into Q3 2026.

• No product revenue to date; all operating losses attributed to R&D and G&A activities supporting DM199 development for AIS and preeclampsia.

Financial highlights

• Cash, cash equivalents, and investments totaled $54.1M as of June 30, 2024, up from $52.9M at year-end 2023.

• Net loss was $5.1M for Q2 2024 and $10.3M for the six months ended June 30, 2024, compared to $4.5M and $9.7M in the prior year.

• R&D expenses rose to $3.9M for Q2 2024 (from $2.5M in Q2 2023) and $7.6M for the first half of 2024 (from $6.2M in 2023), mainly due to Remedy 2 trial and staffing.

• G&A expenses decreased to $1.7M for Q2 2024 (from $2.2M in Q2 2023) and $3.8M for the first half of 2024 (from $4.1M in 2023), due to lower insurance and legal costs.

• Other income, net, was $526,000 for Q2 2024 and $1.1M for the first half of 2024, up from $271,000 and $527,000 in the prior year, driven by higher interest income.

Outlook and guidance

• Cash runway projected to extend into Q3 2026 following recent financing.

• R&D expenses expected to increase moderately as Remedy 2 trial expands globally and preeclampsia trial begins.

• G&A expenses projected to remain steady compared to recent periods.

• Additional capital will likely be needed to complete development and commercialization of DM199.