Craig-Hallum Assumes DiaMedica Therapeutics Inc. (DMAC) at Buy

Craig-Hallum analyst Chase Knickerbocker assumes coverage on DiaMedica Therapeutics Inc. (NASDAQ: DMAC) with a Buy rating and a price target of $8.00.

The analyst comments "Ultimately, we see validation that DM199’s mechanism can be efficacious for AIS patients from use of urine-derived KLK1 in AISs in China with over 1M patients dosed and previous data. If approved, we believe DM199 would be a blockbuster (we think peak sales would be $2.8B in 2033; see page 2). This is obviously not reflected in the current share price, but we have a high level of confidence that if approved, DM199 would clearly be a blockbuster. Activase (Alteplase, known commonly as tPA) is only used in 5-8% of patients but does >$1.3B in sales annually, and is really the only pharmacological treatment for AIS in the acute setting to improve outcomes. The controversy here is whether or not the pivotal trial will be successful; we think shares price in <10% chance of success, our price target assumes 25%. Investors must ask themselves, am I being compensated for the risk here when DM199 would be a blockbuster if approved, considering clinical validation in China, and chances of success priced in that are well below what is typically seen in similar stage trials? We think that the answer is a yes and are assuming coverage with a Buy rating and a $8 price target."

For an analyst ratings summary and ratings history on DiaMedica Therapeutics Inc. click here. For more ratings news on DiaMedica Therapeutics Inc. click here.

Shares of DiaMedica Therapeutics Inc. closed at $2.42 yesterday.

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