DiaMedica Therapeutics Inc. (NASDAQ: DMAC) reported a second-quarter 2026 net loss of $10.1 million, widening from $7.7 million in the same period last year, driven by increased research and development spending. Despite the expanding deficit, the clinical-stage biopharmaceutical company delivered significant progress on its lead candidate DM199, including statistically significant blood pressure reductions in late-onset preeclampsia patients and the completion of enrollment for the first cohort of its fetal growth restriction trial. The company holds $43.5 million in cash, cash equivalents, and short-term investments, providing a runway through 2027.

The quarterly results reflect a strategic acceleration in clinical activities. Net cash used in operating activities rose to $17.2 million for the six months ended June 30, 2026, compared to $14.7 million in the prior year period. This increase was primarily attributable to higher net losses, partially offset by changes in operating assets and liabilities. General and administrative expenses remained relatively stable at $2.3 million for the quarter, up slightly from $2.2 million year-over-year.

Financial Performance Overview

DiaMedica’s financial position remains solid despite the burn rate associated with multi-trial execution. Working capital stood at $37.7 million as of June 30, 2026, down from $55.5 million at year-end 2025, due to current liabilities increasing to $6.6 million from $5.1 million. The company anticipates its current liquidity will fund planned clinical studies and corporate operations through 2027 without immediate need for additional financing.

Clinical Milestones Drive R&D Spend

Research and development expenses surged to $8.2 million for the quarter and $16.1 million for the first half of 2026, up from $5.8 million and $11.5 million respectively in 2025. The increase reflects costs associated with the global expansion of the ReMEDy2 acute ischemic stroke trial, additional reproductive toxicity testing for the U.S. IND application, and expanded manufacturing development. Management expects R&D expenses to increase moderately in future periods as the company continues these trials.

Key clinical developments include:

• Preeclampsia: In Part 1a of the Phase 2 study, DM199 produced a mean 29.1 mmHg reduction in systolic blood pressure and a 17.0 mmHg reduction in diastolic blood pressure in late-onset patients. Systolic blood pressure was maintained below 160 mmHg over 24 hours.
• Fetal Growth Restriction (FGR): Enrollment is complete for the first cohort of six participants at the 5 µg/kg dose level. A key opinion leader call is scheduled for September to discuss top-line results.
• Acute Ischemic Stroke: Enrollment in the Phase 2/3 ReMEDy2 trial has surpassed 85% of the 200 participants required for an interim analysis, expected in early 2027. Approximately 70 sites are now active across North America and Europe.

What the Numbers Show

The divergence between the technical beat on earnings per share—reported at $(0.19) versus an estimate of $(0.20)—and the widening absolute net loss highlights the company’s ability to manage expectations while scaling operations. However, the 31% year-over-year increase in R&D spend underscores the capital intensity required to advance DM199 across three major indications simultaneously. With no revenue generated, the sustainability of this trajectory depends entirely on maintaining its current cash runway and achieving positive interim data readouts, particularly from the stroke and preeclampsia programs, to secure future funding or partnerships.

DiaMedica Therapeutics Inc. granted 160,000 stock options to a newly hired non-executive employee as a material inducement for employment commencing in July 2026. The options were issued on July 15, 2026, under Nasdaq Listing Rule 5635(c)(4) and the DiaMedica Therapeutics Inc. Amended and Restated 2021 Employment Inducement Incentive Plan. The Compensation Committee of the Board of Directors approved the grant.

The options have an exercise price of $7.64 per share, equal to the closing price of the company's common stock on the grant date. The awards vest and become exercisable on a cumulative basis, with 25% of the underlying shares vesting on the one-year anniversary of the grant date. The remaining 75% vest in 12 quarterly installments starting three months after the one-year anniversary, subject to the employee's continued service. The options carry a ten-year term.

DiaMedica Therapeutics Inc. is a clinical-stage biopharmaceutical company focused on developing treatments for preeclampsia, fetal growth restriction, and acute ischemic stroke. Its lead candidate, DM199, is a recombinant form of the KLK1 protein.

Key Details of the Grant