DiaMedica Therapeutics Inc. (DMAC) Reports Third Quarter 2023 Financial Results
DiaMedica Therapeutics Inc. (NASDAQ:DMAC) announces Q3 2023 results with significant R&D investments and protocol amendments for ReMEDy2 trial.
Net loss increased to $4.5 million for Q3 2023 compared to $3.1 million for Q3 2022.
Total cash, cash equivalents, and investments rose to $56.2 million as of September 30, 2023, from $33.5 million as of December 31, 2022.
Research and development expenses more than doubled year-over-year for the quarter, reflecting increased clinical trial activity.
On November 13, 2023, DiaMedica Therapeutics Inc. (NASDAQ:DMAC) released its 8-K filing, announcing financial results for the third quarter ended September 30, 2023. The company, which specializes in developing treatments for neurological disorders and cardio-renal diseases, reported a net loss of $4.5 million for the quarter, a deeper loss compared to $3.1 million in the same period last year. Despite the increased net loss, DiaMedica's cash position strengthened significantly, with total cash, cash equivalents, and investments reaching $56.2 million, thanks to successful private placements earlier in the year.
Business Update and Clinical Developments
DiaMedica provided updates on its ReMEDy2 Phase 2/3 AIS clinical trial, including protocol amendments aimed at enhancing the study's robustness. The company's Interim Chief Medical Officer, Dr. Jordon Dubow, stated,
The revisions we are implementing to the ReMEDy2 trial protocol reflect the feedback weve received from clinical sites and stroke key opinion leaders and follows more closely the clinical studies with KAILIKANG in China."
These changes are expected to optimize trial execution and improve the potential for DM199 to enhance outcomes for stroke patients.
Financial Performance
Research and development expenses for Q3 2023 increased to $3.3 million from $1.6 million in Q3 2022, reflecting the company's commitment to advancing its clinical programs. General and administrative expenses also rose to $1.9 million from $1.5 million year-over-year, driven by increased legal fees and personnel costs. Other income, net, which includes interest earned on marketable securities, showed a significant increase to $693 thousand for the quarter, up from $76 thousand in the prior year.
Balance Sheet and Cash Flow
The company's balance sheet showed a healthy increase in working capital to $45.7 million from $31.7 million at the end of 2022. The net cash used in operating activities for the nine months ended September 30, 2023, was $14.9 million, an increase from $8.7 million in the same period last year, primarily due to the increased net loss and amortization of discounts on marketable securities.
Looking Ahead
DiaMedica is preparing for the re-initiation of the ReMEDy2 study, with initial U.S. clinical sites expected to be activated in late 2023 and further global expansion planned. The company anticipates completing full enrollment for the interim analysis in 2024. CEO Rick Pauls expressed optimism, commenting,
We are thrilled to be reengaging with doctors and hospitals to work towards developing DM199 as a significant advance for the treatment of ischemic stroke patients."
For detailed financial tables and further information on the ReMEDy2 AIS Phase 2/3 clinical trial, interested parties are directed to the DiaMedica website and the SEC's website.
In conclusion, DiaMedica Therapeutics Inc. (NASDAQ:DMAC) is navigating through a period of increased investment in research and development, with a focus on advancing its lead candidate, DM199, for the treatment of acute ischemic stroke. The company's strengthened cash position and strategic amendments to its clinical trial protocol suggest a proactive approach to addressing the challenges and opportunities ahead.
Explore the complete 8-K earnings release (here) from DiaMedica Therapeutics Inc for further details.
This article first appeared on GuruFocus.
