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MINNEAPOLIS - DiaMedica Therapeutics Inc. (NASDAQ:DMAC), a clinical-stage biopharmaceutical company with a market capitalization of $171 million, announced positive interim results from its Phase 2 study of DM199 for the treatment of preeclampsia, demonstrating statistically significant reductions in blood pressure and improved uterine blood flow. According to InvestingPro data, the company maintains a strong financial health score, with more cash than debt on its balance sheet.
The clinical-stage biopharmaceutical company reported that DM199, a recombinant form of the KLK1 protein, achieved pre-specified safety and efficacy endpoints in the Part 1a dose escalation phase of the trial being conducted at Tygerberg Hospital in Cape Town, South Africa. With a current ratio of 8.02, DiaMedica’s liquid assets significantly exceed its short-term obligations, providing strong financial flexibility for its clinical development programs.
In the highest dose cohort, patients experienced mean systolic blood pressure reductions of 35 mmHg and diastolic blood pressure reductions of 15 mmHg at five minutes post-infusion. Across pooled cohorts representing the potentially therapeutic dose range, statistically significant blood pressure reductions were maintained at 24 hours post-infusion.
The study also demonstrated a 13.2% reduction in uterine artery pulsatility index, suggesting improved blood flow to the placenta. Importantly, DM199 did not cross the placental barrier and was generally well-tolerated, with mild adverse events including nausea, headache, and flushing.
"These interim results exceeded our expectations demonstrating DM199’s potential to be a first-in-class, disease modifying therapy for preeclampsia," said Rick Pauls, President and CEO of DiaMedica Therapeutics, according to the press release.
Preeclampsia, affecting up to 8% of pregnancies worldwide, is characterized by high blood pressure and organ damage after the 20th week of gestation. Currently, there are no approved pharmacological treatments for preeclampsia in the United States and Europe.
Based on these results, the company will proceed with enrollment in the dose expansion cohort and initiate enrollment in the fetal growth restriction cohort of the study. While the stock has seen an 8.45% return over the past week, InvestingPro analysis reveals several additional insights about the company’s performance and outlook. Subscribers can access comprehensive analysis, including 7 more ProTips and detailed financial metrics in the Pro Research Report.
In other recent news, DiaMedica Therapeutics Inc. reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of -0.18 compared to the forecasted -0.20. Despite the earnings beat, the company’s revenue remained at zero, consistent with forecasts. DiaMedica’s cash and investments total $37.3 million, with a projected cash runway extending into the third quarter of 2026. H.C. Wainwright reaffirmed its Buy rating for DiaMedica, maintaining a $10 price target, highlighting the potential of DM199 in treating preeclampsia, a condition with no FDA-approved therapies. The company is set to release preliminary results from its Phase 2 preeclampsia study between June and July 2025. Additionally, DiaMedica held its 2025 Annual General Meeting, where seven directors were re-elected, and Baker Tilly US, LLP was appointed as the independent registered public accounting firm. The executive compensation proposal also received advisory approval from shareholders. These developments indicate ongoing progress in DiaMedica’s clinical programs and strategic initiatives.
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