DiaMedica Therapeutics (DMAC), the Minneapolis-based clinical-stage biopharmaceutical company developing its lead drug candidate DM199 for preeclampsia, fetal growth restriction, and acute ischemic stroke, reported full year 2025 financial results on March 30, 2026. The update paints a picture of a company spending deliberately to push multiple clinical programs forward while maintaining what management described as a runway extending through the second half of 2027.
A Meaningfully Stronger Balance Sheet
Perhaps the most investor-relevant headline from the full year 2025 report is the company's cash position. DiaMedica ended 2025 with cash, cash equivalents, and short-term investments of approximately $59.9 million, up substantially from $44.1 million at year-end 2024. The increase was driven primarily by net proceeds from a July 2025 private placement and activity under its at-the-market offering program, which together generated approximately $43.3 million in net proceeds from share issuances during the year.
Based on current plans, management believes the cash on hand is sufficient to fund planned clinical studies and corporate operations through the second half of 2027. For a company conducting two concurrent clinical programs across multiple geographies, that kind of visibility is a meaningful operational asset.
Where the Money Is Going
Total operating expenses for fiscal 2025 reached $34.4 million, compared to $26.7 million in the prior year, reflecting the expanding scope of the company's clinical work.
Research and development expenses rose to $24.6 million from $19.1 million in 2024. The increase was driven largely by the continued execution of the ReMEDy2 acute ischemic stroke trial, which has grown to include sites globally, as well as an expanded clinical team and higher share-based compensation. These increases were partially offset by the completion of manufacturing process development work that had been active in the prior year. DiaMedica guided that R&D spending is expected to increase moderately going forward as both clinical programs continue to advance.
General and administrative expenses were $9.8 million, up from $7.6 million, with the increase reflecting higher personnel costs, increased share-based compensation, expanded investor relations activity, and patent prosecution costs. Management indicated G&A is expected to remain roughly steady or increase modestly.
The full year net loss was $32.8 million, or $0.70 per share, versus a net loss of $24.4 million, or $0.60 per share, in 2024. Net cash used in operating activities was $29.1 million compared to $22.1 million the prior year.
The increase in spending is not unexpected. This is a company with two simultaneous clinical programs moving through important inflection points, and the investment reflects that activity rather than operational drift.
ReMEDy2 Stroke Trial: Approaching a Key Milestone
DiaMedica's Phase 2/3 ReMEDy2 trial evaluating DM199 in acute ischemic stroke (AIS) is approaching 70% of the enrollment required to trigger the trial's planned interim analysis. Management reaffirmed guidance that the interim analysis is expected to be completed in the second half of 2026, a data readout that represents one of the most significant near-term value inflection points on the company's calendar.
AIS remains an area with substantial unmet medical need. DM199 works by stimulating the kallikrein-kinin system to trigger vasodilation through all three major endothelial pathways: nitric oxide, prostacyclin, and endothelium-derived hyperpolarizing factor. The goal is to improve collateral circulation in the ischemic penumbra surrounding a blocked artery, potentially reducing brain injury even when used alongside standard-of-care treatments like tPA or mechanical thrombectomy.
Preeclampsia Program: Expanding on Multiple Tracks
DiaMedica's preeclampsia and fetal growth restriction program continued to build out across several simultaneous tracks during 2025 and into early 2026.
Investigator-Sponsored Trial (IST): The Phase 2 IST, being conducted in South Africa, is enrolling participants in the expansion cohort for Part 1a, a group of patients with preeclampsia who are expected to deliver within 72 hours. Completion of Part 1a enrollment is anticipated in the first half of 2026, with an updated dataset expected later in the year. Protocol amendments for Parts 1b and 2 (which will evaluate patients with early-onset preeclampsia undergoing expectant management) are being finalized based on learnings from Part 1a. The first patient with early-onset fetal growth restriction who does not have a preeclampsia diagnosis is expected to be dosed in Q2 2026.
DiaMedica-Sponsored Phase 2 Trial: In parallel, DiaMedica received a "No Objection Letter" from Health Canada in March 2026, clearing the way to initiate a company-sponsored Phase 2 study of DM199 in early-onset preeclampsia in Canada. The open-label, dose-range finding study is planned to span the United States, Canada, and the United Kingdom, with a UK clinical trial application filing targeted for Q2 2026. On the U.S. regulatory front, DiaMedica indicated it plans to discuss an alternate species approach with the FDA and expects to have an update on FDA alignment next quarter, while proceeding with the study in Canada and the UK in the meantime.
The rationale for pursuing preeclampsia is straightforward: it is a hypertensive pregnancy complication that is a leading cause of maternal mortality worldwide, and there is currently no approved therapy targeting the underlying disease. If DM199 can demonstrate that it lowers blood pressure, improves endothelial health, and enhances placental perfusion, it would be the first treatment to address the disease itself rather than just its symptoms.
Peer-Reviewed Publication Explores DM199's Potential in Resistant Hypertension
A recently published article in the Journal of Hypertension, authored by a scientific consultant with expertise in KLK1 biology, examined DM199's mechanism in the context of a condition DiaMedica has not announced plans to target: resistant hypertension (RH).
The article focused on endothelial dysfunction as a central driver of resistant hypertension, particularly in patients with chronic kidney disease (CKD-associated RH), a population that affects an estimated 10 to 15% of treated hypertensive adults. The author argued that therapies capable of simultaneously engaging all three major vasodilatory pathways — nitric oxide, prostacyclin, and endothelium-dependent hyperpolarization — may be necessary to meaningfully address the vascular abnormalities underlying the condition, given that agents targeting individual pathways have not consistently produced durable results.
Within that framework, the article identified KLK1 and its recombinant analogue DM199 as a biologically plausible candidate strategy. It pointed to earlier Phase 2 clinical evidence in CKD patients in which DM199 was associated with blood pressure reductions, stabilization of renal function, and reductions in albuminuria, with a favorable safety and electrolyte profile, as supportive of further investigation in this setting.
DiaMedica has not announced any plans to pursue a resistant hypertension indication, and this publication should not be read as a pipeline signal. What it does reflect is that the mechanistic profile of DM199 extends into vascular disease territory beyond the company's current clinical programs, a point worth noting for investors tracking the drug's broader potential.
The Investment Thesis in Brief
DiaMedica enters 2026 with roughly $60 million in the bank, two advancing clinical programs, and a 2H 2026 interim analysis readout in stroke that represents a meaningful catalyst. The preeclampsia program is expanding into company-sponsored territory with regulatory green lights in Canada and a UK filing expected imminently. The net loss widened year-over-year, but the spending is directly traceable to trial execution, an important distinction for investors evaluating whether burn is purposeful.
The interim analysis in ReMEDy2 will be a critical moment, offering the first meaningful efficacy signal from what DiaMedica has positioned as a potentially pivotal dataset in acute ischemic stroke. Between now and then, the preeclampsia IST data readout, the FDA alignment update, and the first FGR patient dosing all provide additional markers of progress.
For retail investors monitoring the stock, the second half of 2026 is shaping up to be a newsworthy period.
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