DiaMedica Therapeutics Inc. Annual Report: A Simple Guide

I’m putting together this guide to help you understand how DiaMedica Therapeutics performed this year. My goal is to turn complex filing information into clear insights so you can decide if this company fits your investment goals.

1. What does this company do?

DiaMedica is a biotech company in the research phase. They are not yet selling products to pharmacies. Instead, they focus their resources on proving their experimental drugs work.

Their primary focus is DM199, a synthetic version of a human protein called KLK1. This protein helps regulate blood flow, reduce inflammation, and protect kidneys. They are currently testing it for three serious conditions: preeclampsia (a dangerous pregnancy complication), fetal growth restriction, and acute ischemic stroke.

2. Financial performance

Because they do not have a product on the market, the company is not yet profitable. They are currently spending cash to fund clinical trials.

For the year ending December 31, 2025, the company reported a loss of approximately $24.7 million, primarily driven by research and development costs. As of mid-2025, the company had a market valuation of roughly $95.8 million. By March 2026, there were 53.9 million shares outstanding. With $32.4 million in cash on hand, management expects to fund operations into the second half of 2027.

3. Major wins and challenges

The company’s progress is a mix of promising science and regulatory hurdles:

• Stroke Trial (ReMEDy2): This is the company's primary study. They are testing if DM199 helps stroke patients when administered within 24 hours of symptom onset. The study uses an "adaptive design," allowing the company to pause after 200 patients to check results. If the drug shows clear efficacy or failure, they can stop early to preserve capital. If results are inconclusive, they will continue toward their goal of 350 patients.
• Preeclampsia Progress: In July 2025, the company reported positive results from a study in South Africa, where the drug appeared safe and successfully lowered blood pressure in pregnant women.
• Regulatory Requirements: The FDA requested a safety study in rabbits. Because the rabbits experienced an immune reaction to the drug, the data was inconclusive. DiaMedica is currently identifying alternative methods to satisfy FDA safety requirements before proceeding with trials in the U.S. and Canada.

4. Key risks

Investing in DiaMedica is a bet on the success of their clinical research. Keep these risks in mind:

• Clinical Trial Outcomes: Clinical trials are high-stakes. If the stroke trial fails to show clear improvement, the company’s value could drop significantly, as DM199 is their only major project.
• Cash Runway and Dilution: Without product sales, the company relies on raising capital from investors. They often sell new shares to fund operations, which increases the total share count and can reduce the ownership percentage and value of existing shares.
• Regulatory Delays: The FDA maintains strict safety standards. The ongoing need to address safety requirements means that unexpected hurdles can push timelines back, increasing the risk that the company will need to raise more capital sooner than expected.

5. Future outlook

The company believes that because KLK1-based treatments are already utilized in Asia, their synthetic version (DM199) offers a safer, more reliable option for global markets. Their primary objectives are to keep the stroke trial on track for 2027 and to resolve the FDA’s safety requirements.

Bottom line: This is a high-risk, high-reward investment. You are not buying a company with steady sales; you are buying a stake in the potential success of their research. Expect significant price volatility based on clinical trial results and future capital-raising activities.