DiaMedica Therapeutics (DMAC) Q4 2019 earnings summary

Executive summary

• 2019 advanced DM199 across CKD and acute ischemic stroke programs: completed a CKD Phase Ib study and REMEDY enrollment, and began the REDUX Phase II CKD study.

• No product sales revenue; net loss was $10.649M. February 2020 financing added $7.7M net proceeds and was expected to fund planned operations through 2021.

Financial highlights

• 2019 operating revenue was $0; 2018 revenue was $500K from an upfront license payment. R&D was $7.9M vs. $4.5M; G&A was $3.7M vs. $2.7M.

• Operating loss was $11.593M vs. $6.761M in 2018; net loss was $10.649M vs. $5.734M, and basic/diluted loss per share was $0.89 vs. $0.74.

• Cash, cash equivalents and marketable securities totaled $7.878M at Dec. 31, 2019, down from $16.823M a year earlier; working capital was $7.518M vs. $16.676M.

• Net cash used in operations was $9.102M in 2019 vs. $5.696M in 2018; investing activities used $3.908M, while financing provided $70K.

Outlook and guidance

• February 2020 offering proceeds, together with year-end resources, were expected to fund REMEDY, the first two REDUX cohorts and planned operations through 2021; additional capital may be needed earlier than expected.

• 2020 priorities were completing Phase II studies in CKD and AIS; rising R&D and G&A costs were expected to drive continued operating losses for several years.

• Full REMEDY results were expected in 2020; after the European Stroke Conference was postponed, alternative timing and channels for release were being evaluated.