On Thursday, Oppenheimer adjusted his forecast for DiaMedica Therapeutics Inc. shares. (NASDAQ:DMAC), lowering its price target to $6 from the previous $7, while maintaining an outperform rating. The firm recognized DiaMedica’s fourth-quarter 2023 earnings per share (EPS) of ($0.12), beating both Oppenheimer’s estimate and the Wall Street consensus of ($0.14).
DiaMedica’s progress in the phase 2/3 ReMEDy2 study for the treatment of acute ischemic stroke (AIS) has been reported as positive, with most U.S. sites expected to be operational by the third quarter of 2024 to increase patient enrollment.
The company amended the trial to focus exclusively on moderate anterior circulation AIS with National Institutes of Health Stroke Scale (NIHSS) scores of 5 to 15 and excluding posterior circulation cases. These changes are seen as potentially reducing risk.
Despite these optimistic developments, the analyst expressed a cautious stance due to historical difficulties in recruiting patients for stroke research. The revised schedule calls for full interim review enrollment by the first quarter of 2025, a delay from the previously expected 2024 date. This delay is believed to introduce additional risk to DiaMedica’s operating outlook.
The company’s confirmation of the Outperform rating indicates confidence in the potential success of DiaMedica’s ongoing study, despite challenges and delays. The price target adjustment to $6 reflects the firm’s revised expectations in light of the filing delay and associated risks.
DiaMedica Therapeutics is actively working to advance the ReMEDy2 study, which is critical to the company’s future growth and success in treating AIS.
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