DiaMedica Q2 2026 earnings: Clinical expansion widens net loss
DiaMedica Therapeutics reported a Q2 2026 net loss of $10.1 million, up 32% year-over-year, driven by a 40% increase in R&D spending for its DM199 clinical programs. While cash reserves declined to $43.5 million, management projects a runway through 2027. Clinical highlights include promising blood pressure reductions in a Phase 2 late-onset preeclampsia study, though results remain preliminary. Key upcoming milestones include September 2026 fetal growth restriction data and a Q1 2027 interim analysis for the ReMEDy2 stroke trial. Investor risks involve trial execution, regulatory requirements for U.S. programs, and rising development costs.
DiaMedica Therapeutics (Nasdaq: DMAC) reported a Q2 2026 net loss of $10.1 million, versus $7.7 million a year earlier, while basic and diluted loss per share widened to $0.19 from $0.18. The larger loss reflected higher R&D spending as the company expanded DM199 trials, while cash, cash equivalents and short-term investments fell to $43.5 million and management maintained a runway estimate through 2027.
Core financial results
R&D expense increased by approximately 40%, accounting for most of the increase in operating loss. DiaMedica attributed the higher spending to clinical-team expansion, the global rollout of the ReMEDy2 stroke trial, reproductive toxicity work for the U.S. preeclampsia program, manufacturing development and higher share-based compensation.
G&A expense rose more modestly. Meanwhile, the weighted-average share count increased by about 25%, which limited the change in loss per share even as the total net loss grew by approximately 32%.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| R&D expense | $8.153 million | $5.822 million | Up about 40% |
| G&A expense | $2.345 million | $2.185 million | Up about 7% |
| Operating loss | $10.498 million | $8.007 million | Loss widened about 31% |
| Net loss | $10.139 million | $7.699 million | Loss widened about 32% |
| Basic and diluted loss per share | $0.19 | $0.18 | Loss widened by $0.01 |
| Weighted-average shares | 53.894 million | 42.958 million | Up about 25% |
Clinical program progress
The most important clinical update came from Part 1a of the Phase 2 late-onset preeclampsia study. In the combined final highest-dose cohorts, consisting of 15 participants, DM199 produced a mean systolic blood pressure reduction of 29.1 mmHg from a baseline of 169.3 mmHg and a mean diastolic reduction of 17.0 mmHg from a baseline of 103.7 mmHg. Both results were measured five minutes after the IV infusion and had p-values below 0.001.
Management also said the mid-dose cohorts showed the most clinically meaningful combined effects on blood pressure and uterine artery pulsatility index, supporting further evaluation of that dose range. The study was open-label and single-arm, making confirmation in larger studies important.
DiaMedica also advanced its fetal growth restriction, early-onset preeclampsia and acute ischemic stroke programs during the quarter.
| Program | Latest update | Next disclosed milestone |
|---|---|---|
| Late-onset preeclampsia | Part 1a completed; the combined highest-dose cohorts included 15 participants | Detailed results planned for a medical conference and publication |
| Early-onset fetal growth restriction | First cohort of six participants completed enrollment at 5 µg/kg | Topline results and KOL call planned for September 2026 |
| ReMEDy2 acute ischemic stroke trial | Enrollment surpassed 85% of the 200 participants needed to trigger the interim analysis; about 70 sites were active | Interim analysis expected in Q1 2027 |
| Global early-onset preeclampsia study | Health Canada authorized a Phase 2 dose-finding study of approximately 30 participants | First Canadian patient expected in Q4 2026; UK expansion remains subject to authorization and site readiness |
| U.S. preeclampsia IND pathway | A rat pharmacokinetic and pharmacologic activity study is underway following FDA feedback | Data package to be submitted to the FDA after study completion |
Higher trial spending is widening cash burn
DiaMedica used $17.2 million of cash in operations during the first six months of 2026, up from $14.7 million in the comparable 2025 period. The company attributed the increase primarily to its larger net loss, partly offset by changes in operating assets and liabilities.
The balance-sheet changes reflect the cost of running several clinical programs simultaneously.
| Metric | Current period | Comparison period | Change |
|---|---|---|---|
| Cash, cash equivalents and short-term investments | $43.5 million at June 30, 2026 | $59.9 million at Dec. 31, 2025 | Down $16.4 million |
| Working capital | $37.7 million at June 30, 2026 | $55.5 million at Dec. 31, 2025 | Down $17.8 million |
| Current liabilities | $6.6 million at June 30, 2026 | $5.1 million at Dec. 31, 2025 | Up $1.5 million |
| Operating cash used | $17.2 million for six months | $14.7 million for prior-year period | Up $2.4 million |
Management expects R&D expense to increase moderately as ReMEDy2 expands globally and DM199 development advances in preeclampsia. G&A expense is expected to remain relatively steady. Based on current plans, the company believes its available funds can support planned clinical studies and corporate operations through 2027.
Recent insider transactions
The supplied six-month insider summary reports zero purchase transactions and zero sales transactions, with total insider holdings of 14.95 million shares. The latest two-year transaction list includes indirect purchases by holders of more than 10%, director stock awards and derivative-security conversions; the figures below follow the source’s reported value field rather than representing share counts.
| Date | Insider and role | Transaction | Reported value | Price per share |
|---|---|---|---|---|
| Jan. 2, 2026 | James T. Parsons, Director | Stock award, direct | $85,000 | $8.42 |
| Jan. 2, 2026 | Randall Michael Giuffre, Director | Stock award, direct | $51,994 | $8.42 |
| Jan. 2, 2026 | Charles Pauling Semba, Director | Stock award, direct | $28,249 | $8.42 |
| Nov. 25, 2025 | Jan Stahlberg, holder of more than 10% | Purchase, indirect | $7,631,469 | $6.52–$8.57 |
| Nov. 21, 2025 | James T. Parsons, Director | Derivative-security conversion, direct | $26,400 | $2.20 |
| Aug. 27, 2025 | Jan Stahlberg, holder of more than 10% | Purchase, indirect | $5,958,107 | $5.86–$6.00 |
| July 23, 2025 | Richard Jacinto II, holder of more than 10% | Purchase, indirect | $2,060,000 | $5.15 |
| July 23, 2025 | Nils Thomas von Koch, holder of more than 10% | Purchase, indirect | $14,714,281 | $5.15 |
| July 23, 2025 | Jan Stahlberg, holder of more than 10% | Purchase, indirect | $7,945,714 | $5.15 |
| April 7, 2025 | Richard D. Pilnik, Director | Derivative-security conversion, direct | $50,640 | $2.11 |
Stock awards and derivative-security conversions are different from open-market purchases and should not be interpreted in the same way.
Risks investors need to watch
- Early-stage clinical evidence: The preeclampsia study was open-label and single-arm, and the highlighted highest-dose analysis involved 15 participants. The results may not be replicated in larger or controlled trials.
- Trial execution and timing: The fetal growth restriction cohort remains small, while the timing of the ReMEDy2 interim analysis depends on continued enrollment and trial execution across a broad international site network.
- U.S. regulatory requirements: Progress toward a U.S. IND for preeclampsia depends on the rat study demonstrating adequate DM199 exposure, enzymatic activity and pharmacologic effect, followed by FDA review.
- Rising development costs: R&D spending and operating cash use are increasing as DiaMedica runs multiple programs. The projected runway through 2027 depends on the company’s current development plans and cost assumptions.
Summary
DiaMedica’s Q2 2026 loss widened mainly because of increased clinical development spending, but the quarter also brought preeclampsia data that management is using to guide subsequent DM199 studies. The key upcoming checkpoints are the September fetal growth restriction results, continued progress toward the U.S. preeclampsia IND and the ReMEDy2 interim analysis expected in early 2027, with cash usage remaining central as those programs advance.
This article may include AI-generated content that is human-reviewed, which is for reference and general information purposes only and does not constitute investment advice.
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