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Wednesday - H.C. Wainwright analysts have increased the price target on DiaMedica Therapeutics Inc. (NASDAQ:DMAC) shares to $10 from the previous $7, while maintaining a Buy rating. Currently trading at $5.21 with a market capitalization of $223 million, DMAC has attracted analyst targets ranging from $6 to $11. The adjustment follows the anticipation of preliminary Phase 2 data for the company’s lead candidate DM199 (rinvecalinase alfa), which is under investigation for the treatment of preeclampsia, a pregnancy complication. According to InvestingPro, the company maintains a strong financial position with more cash than debt on its balance sheet.
The upcoming dataset, expected in the second quarter of 2025, is derived from Part 1A of a preeclampsia trial and is set to provide insights into the safety, tolerability, and efficacy of DM199. Analysts are particularly interested in whether the treatment can achieve a reduction in maternal systolic blood pressure and improve uterine artery blood flow without crossing the placental barrier.
The findings from the preeclampsia study are also seen as a potential indicator for DM199’s performance in a separate Phase 2/3 trial for acute ischemic stroke (AIS), named ReMEDy2. Analysts are looking for a significant drop in systolic blood pressure, confirmation that DM199 remains outside the placental barrier, and improved placental perfusion as measured by Doppler ultrasound.
The price target increase stems from updated estimates based on the preeclampsia trial and the unmet medical needs in this area. If the Phase 2 trial demonstrates effective blood pressure management, it could suggest broader benefits for DM199, particularly in the context of acute ischemic stroke treatment. The reiteration of the Buy rating reflects the firm’s confidence in DM199’s potential and its implications for DiaMedica’s vascular disease pipeline. Despite a recent 10% weekly decline, DMAC shares have surged 85% over the past year. Discover more insights about DMAC and access comprehensive analysis of 1,400+ stocks with InvestingPro’s detailed research reports.
In other recent news, DiaMedica Therapeutics announced its financial results for the fourth quarter of 2024, reporting an earnings per share (EPS) of -0.18, slightly below the forecast of -0.1725. Despite this minor miss, the company’s stock saw a rise in after-hours trading, indicating investor confidence in its ongoing clinical programs. DiaMedica is advancing its research in stroke and preeclampsia, with increased research and development expenses reaching $19.1 million, up from $13.1 million in the previous year. General and administrative expenses decreased to $7.6 million from $8.2 million, reflecting cost management efforts. The company maintains financial reserves projected to support operations into the third quarter of 2026. Analysts from firms such as Lake Street and Craig Hallum have shown interest in the company’s clinical trials, including the REMEDY-two stroke trial. DiaMedica’s Chief Medical (TASE:BLWV) Officer highlighted progress in the preeclampsia program, emphasizing the potential of its treatment to address unmet medical needs.
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