DiaMedica Therapeutics Q2 2025 shows promising trials

 DiaMedica Therapeutics (DMAC), with a market capitalization of $269.82 million, reported its earnings for the second quarter of 2025, revealing a slight beat on earnings per share (EPS) expectations but no revenue figures. The company’s EPS came in at a loss of $0.18, compared to the forecasted loss of $0.19. While the stock initially fell 3.83% in premarket trading, it has since recovered to $5.22, reflecting mixed investor sentiment. The company’s ongoing clinical trials and strategic initiatives were key discussion points during the earnings call. 

Key Takeaways

• DiaMedica reported a Q2 EPS loss of $0.18, slightly better than the expected loss of $0.19.
• The stock price decreased by 3.83% in premarket trading following the earnings announcement.
• The company highlighted positive interim results from its lead candidate, DM199, in a Phase 2 trial for preeclampsia.
• DiaMedica’s cash position was bolstered by a recent $30 million private placement, extending its cash runway into 2027.
• The company is expanding its clinical trials to the UK and Europe.

Company Performance

DiaMedica Therapeutics showed resilience in its financial performance despite ongoing net losses. The company reported net losses of $7.7 million for Q2 and $15.4 million year-to-date. Notably, the company maintains a strong current ratio of 7.55, indicating robust short-term liquidity. The company’s strategic moves, including a significant private placement, have strengthened its cash position, enabling it to extend its financial runway into 2027. The focus on its lead candidate, DM199, for preeclampsia and stroke, remains a pivotal part of its strategy.

Financial Highlights

• Cash and cash equivalents: $30 million as of June 30, 2025
• Pro forma cash position: $60 million post-July private placement
• Net operating cash used: $14.7 million for the first half of 2025
• R&D expenses: $5.8 million for Q2, $11.5 million year-to-date
• Net losses: $7.7 million for Q2, $15.4 million year-to-date

Earnings vs. Forecast

DiaMedica’s EPS for Q2 2025 was a loss of $0.18, slightly better than the forecasted loss of $0.19, resulting in a surprise of 5.26%. This minor beat contrasts with the company’s historical performance where earnings often aligned closely with forecasts. The absence of revenue figures continues to be a challenge for investors seeking comprehensive financial data.

Market Reaction

Following the earnings announcement, DiaMedica’s stock showed volatility but has demonstrated strong momentum over the past year, delivering a 45.81% return to investors. Currently trading at $5.22, the stock sits between its 52-week range of $3.19 to $6.82. This movement is notable given the company’s recent addition to the Russell 2000 and Russell 3000 indexes. While analysts maintain optimistic price targets between $11 and $14, InvestingPro analysis suggests the stock may be overvalued at current levels. For comprehensive valuation insights and access to the detailed Pro Research Report covering DMAC and 1,400+ other stocks, consider an InvestingPro subscription.

Outlook & Guidance

DiaMedica is preparing to file an FDA Investigational New Drug (IND) application for a Phase 2B trial of DM199 for preeclampsia. The company plans to start this trial in the US in 2026, with concurrent enrollment in multiple cohorts. Additionally, DiaMedica continues to progress with its REMEDY two stroke trial, expecting interim analysis of the first 200 patients in Q2 2026.

Executive Commentary

CEO Rick Pauls expressed confidence in DM199, stating, "We believe that DM199 has the potential to be the first in class disease-modifying treatment for preeclampsia." Dr. Julie Krop, the new Chief Medical Officer, highlighted the derisked biology of KLK1 protein, emphasizing its dual role as a vasodilator and in vascular repair. Pauls also noted recent positive feedback from the FDA regarding the primary endpoint for the preeclampsia trial.

Risks and Challenges

• Regulatory hurdles: Obtaining FDA approval for new trials and treatments can be challenging.
• Clinical trial risks: Unfavorable trial results could impact investor confidence and future funding.
• Market competition: The biopharmaceutical sector is highly competitive, with numerous companies vying for market share.
• Cash burn 
• rate: Continued net losses and high R&D expenses may strain financial resources if not offset by new funding or revenue streams.
• Macroeconomic factors: Economic downturns could impact funding availability and investor sentiment.

Q&A

During the earnings call, analysts focused on the rationale behind Dr. Julie Krop joining the company, the timeline for the preeclampsia trial, and the progress of stroke trial enrollment. Discussions also touched upon the design of the potential US preeclampsia study, reflecting investor interest in DiaMedica’s strategic direction and clinical advancements.

Full transcript - DiaMedica Therapeutics Inc (DMAC) Q2 2025:

https://in.investing.com/news/transcripts/earnings-call-transcript-diamedica-therapeutics-q2-2025-shows-promising-trials-93CH-4961312

'Europe and Kyiv lay out Ukraine ceasefire terms to Trump on call'

 German Chancellor Friedrich Merz said European leaders had laid out terms for a ceasefire in Ukraine that would protect their security interests in a call on Wednesday with U.S. President Donald Trump.

European leaders including Ukrainian President Volodymyr Zelenskiy held the call with Trump in a bid to influence his meeting with Russian President Vladimir Putin in Alaska on Friday, the first U.S.-Russia summit since 2021.

"We have made it clear that Ukraine must be at the table as soon as follow-up meetings take place," Merz said in at the joint press conference with Ukrainian President Volodymyr Zelenskiy.

"We want negotiations to proceed in the right order, with a ceasefire at the outset."

Merz, who initiated the meeting with Trump, said that Ukraine was prepared to negotiate on territorial issues, but "legal recognition of Russian occupation is not up for debate".

The country would need "robust security guarantees", he said, although he did not detail what kind.

If there was no movement on the Russian side in Alaska, however, "then the United States and we Europeans should and must increase the pressure".

"President Trump is aware of this position and largely shares it," Merz said.

The chancellor noted that all conversations held with Putin since Russia's full-scale invasion of Ukraine three and a half years ago had each time been accompanied by an even Russian harsher military response.

If the same occurred this time, it would show conversations with Putin were neither credible nor successful.

"If the United States of America now work towards peace in Ukraine that safeguards European and Ukrainian interests, he can count on our full support in this endeavour," said Merz. 

https://www.straitstimes.com/asia/europe-and-kyiv-lay-out-ukraine-ceasefire-terms-to-trump-on-call

Merck: favorable data in bladder cancer with Pfizer

 On Tuesday, Merck & Co. Inc. (NYSE:MRK) released topline results from the Phase 3 KEYNOTE-905 trial (also known as EV-303) in patients with muscle-invasive bladder cancer (MIBC) who are ineligible for cisplatin-based chemotherapy.

In this study, Keytruda (pembrolizumab) plus Padcev (enfortumab vedotin-ejfv), given before and after surgery (radical cystectomy), demonstrated a statistically significant and clinically meaningful improvement in event-free survival (EFS), the study’s primary endpoint, as well as overall survival (OS) and pathologic complete response (pCR) rate, key secondary endpoints, compared to surgery (radical cystectomy) alone.

The trial, evaluating Merck’s Keytruda plus Padcev, was conducted in collaboration with Pfizer Inc. (NYSE:PFE) (previously Seagen) and Astellas Pharma Inc. (OTC:ALPMF) (OTC:ALPMY).

The trial continues to evaluate the secondary EFS, OS, and pCR rate endpoints for neoadjuvant and adjuvant Keytruda versus surgery alone as they mature.

The safety profile of Keytruda plus Padcev in this study was consistent with the known safety profiles of each agent. No new safety signals were identified with the combination.

The companies plan to share these results with regulatory authorities worldwide and present the data at an upcoming medical meeting.

Keytruda plus Padcev is approved for adult patients with locally advanced or metastatic urothelial cancer (la/mUC) in the U.S., the European Union (EU), Japan, and several other countries.

Keytruda as monotherapy is also approved in the U.S., EU, Japan, and other countries for certain patients with la/mUC or a type of non-muscle-invasive bladder cancer (NMIBC).

Five additional Phase 3 studies are currently evaluating Keytruda across all stages of bladder cancer, including non-muscle-invasive, muscle-invasive, and metastatic.

Three of these studies are in MIBC, including KEYNOTE-866, KEYNOTE-992, and KEYNOTE-B15, which is also known as EV-304 and is being conducted in collaboration with Pfizer and Astellas.

Keytruda is also being evaluated in combination with Bacillus Calmette-Guerin (BCG) in patients with NMIBC in the Phase 3 KEYNOTE-676 trial, and as adjuvant treatment for localized muscle-invasive urothelial carcinoma and locally advanced urothelial carcinoma in the KEYNOTE-123 trial.

In July, Pfizer and Astellas Pharma released topline results from the overall survival (OS) analysis from the Phase 3 EMBARK study evaluating Xtandi (enzalutamide), in combination with leuprolide and as a monotherapy, in men with non-metastatic hormone-sensitive prostate cancer with biochemical recurrence (BCR) at high risk for metastasis.

https://finance.yahoo.com/news/merck-pfizer-backed-therapy-improves-144659751.html

Fed cut seen near certain after inflation data: Bessent

 The likelihood of a Federal Reserve rate cut in September is now seen near 100% after new data showed U.S. inflation increased at a moderate pace in July and Treasury Secretary Scott Bessent said he thought an aggressive half-point cut was possible given recent weak employment numbers.

Traders in contracts tied to the benchmark federal funds rate on Wednesday put the odds of a quarter-percentage point cut at the Fed’s September 16-17 meeting at 99.9%, according to estimates calculated by the CME Group’s FedWatch tool that followed the release of July Consumer Price Index data on Tuesday and later comments by Bessent noting that the Fed had used fears of a weakening job market as justification for a larger cut last September.

Trump has slammed last year’s cut, the first of three that took place before and after his election, as politically motivated given the proximity to the November presidential vote.

Bessent rooted his argument in recent Bureau of Labor Statistics revisions showing job growth had slowed to a crawl in May, June and July, in contrast to initial BLS estimates for May and June indicating stronger employment growth. Fed officials relied on those stronger numbers to argue that the labor market remained in good shape and to hold rates steady at meetings in June and July.

"If we’d seen those numbers in May, in June, I suspect we could have had rate cuts in June and July. So that tells me that there’s a very good chance of a 50 basis-point rate cut," in September, Bessent said in an interview on Bloomberg television.

https://www.investing.com/news/economy-news/fed-cut-seen-near-certain-after-inflation-data-bessent-comments-4188828

‘Frankenstein’ rabbit disease laid to papilloma virus

 It’s not just a bad hare day.

A rapidly spreading virus is causing cottontail rabbits to grow black, tentacle-like growths out of their heads, prompting warnings to steer clear of the mutated animals.

The so-called Frankenbunnies have been spotted multiple times in Fort Collins, Colorado. Resident Susan Mansfield told 9News she saw a rabbit with what looked like “black quills or black toothpicks sticking out all around his or her mouth.”

4

A viral photo of the “Frankenstein” rabbit that was filmed in Minnesota in 2013.Gunnar Boettcher/AP

4

A rapidly-spreading condition called cottontail papilloma virus is causing cottontail rabbits to grow black, tentacle-like protrusions out of their heads, prompting warnings to steer clear of the mutated animals.Universal Images Group via Getty Images

“I thought he would die off during the winter, but he didn’t,” she said. “He came back a second year, and it grew.” 

One person described the infected critter as having “a scabbiesh-looking growth over their face.”

The so-called bunny blight is actually a disease called cottontail papilloma virus (CRPV), also known as Shope papilloma virus, which causes cottontails to sprout tumors around their head.

It is spread by parasites ticks and fleas, which pass on the ailment through their bites, according to Pet MD.

“Typically rabbits become infected in the warmer months of summer when transmitted by being bitten by insects like fleas and ticks,” said Colorado Parks and Wildlife spokesperson Kara Van Hoose, per the Coloradoan.

4

A bunny with a veritable beard of black growths.Reddit/RecommendationPast54

While the recent sightings occurred in Colorado, the disease most frequently rears its horny head in the Midwest.

In 2013, a Minnesota resident caused a stir after posting a video of a tendril-ridden rabbit in his backyard, which he dubbed the “Frankenstein” bunny and compared to the mythical Jackalope — a hoax that was promulgated by jokesters sewing antlers onto taxidermy rabbits.

In light of the rampant CRPV sightings, wildlife experts have warned people not to approach or handle any of the afflicted critters.

4

“It looks like it was black quills or black toothpicks sticking out all around his or her mouth,” said Fort Collins, Colorado resident Susan Mansfield while describing one of the infected critters.Reddit/Different_Try3353
Thankfully, while the virus can spread between rabbits, it is not known to infect humans or pets and is therefore not considered a threat to public health, according to Colorado Parks and Wildlife.

The rabbits, on the other hand, are often not so lucky.

Although cases can resolve on their own, the Medusa-like protrusions can also balloon up to the point that they interfere with the infected carrot cruncher’s ability to eat, causing the creatures to die of starvation, the Daily Mail reported.

In addition, the disease is more severe in domestic bunnies than their wild brethren, with the big fear being that they can develop squamous cell carcinoma — a serious and potentially fatal skin cancer.

For this reason, experts advise keeping pet rabbits away from pets.

If a rabbit does become infected, veterinarians can surgically excise the malevolent dreadlocks before they can become malignant.

Unfortunately, CRPV has no known cure.

https://nypost.com/2025/08/13/science/frankenstein-bunnies-with-head-spikes-invade-us/