Stacy Ku, an analyst from TD Cowen, has initiated a new Buy rating on Diamedica Therapeutics (DMAC).
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Stacy Ku has given her Buy rating due to a combination of factors surrounding the promising potential of Diamedica Therapeutics’ DM199 in treating preeclampsia. The interim proof-of-concept data suggests that DM199, a recombinant tissue kallikrein-1 protein, does not cross the placenta and acts as a potent vasodilator, showing early signs of improved placental perfusion. This has generated enthusiasm among key opinion leaders for its potential to address both hypertension and endothelial dysfunction, which could significantly enhance maternal-fetal health outcomes.
Furthermore, the valuation of Diamedica Therapeutics is considered compelling, with the potential for DM199 to become a standard of care in early onset preeclampsia. The company’s current market valuation is around $300 million, and there is an expectation that DM199 could achieve over $1 billion in peak sales with a 25-30% market penetration. The high interest from key opinion leaders in participating in upcoming trials underscores the drug’s promising safety and efficacy profile, with potential U.S. IND approval and study initiation anticipated by 2026.
According to TipRanks, Ku is a 4-star analyst with an average return of 13.4% and a 59.65% success rate. Ku covers the Healthcare sector, focusing on stocks such as LENZ Therapeutics, KalVista Pharmaceuticals, and UCB SA.