DiaMedica Therapeutics (DMAC) Q4 2018 earnings summary

Executive summary

• 2018 marked the Nasdaq IPO and expanded clinical development of DM199 for acute ischemic stroke (AIS) and chronic kidney disease (CKD).

• Revenue was limited to a $500,000 license payment; no product sales had been generated. Net loss was $5.7 million, with an accumulated deficit of $46.0 million.

• Cash of $16.8 million at year-end was expected to fund the planned AIS and CKD trials and operations through 2020.

Financial highlights

• 2018 license revenue was $500,000; R&D expense was $4.5 million versus $3.2 million in 2017, and G&A expense was $2.7 million versus $1.3 million.

• Operating loss was $6.8 million versus $4.5 million in 2017; net loss was $5.734 million versus $4.260 million.

• Basic and diluted net loss per share was $0.74 versus $0.72 in 2017; weighted-average shares were 7,743,520 versus 5,935,790.

• Net other income was $1.1 million versus $259,000 in 2017, primarily reflecting Australian R&D incentives, partly offset by higher foreign-currency losses.

Outlook and guidance

• Expected cash runway through end-2020 covered the ongoing Phase II AIS trial, CKD Phase Ib trial, planned CKD Phase II study, and other planned operations.

• Operating expenses and losses were expected to increase as DM199 trials advanced and public-company, intellectual-property, and G&A costs rose.

• Substantial additional capital was expected to be needed to complete development through regulatory approval and commercialization; future funding timing depended on trial results and program scope.