DiaMedica Therapeutics Inc. (DMAC:NASDAQ) appointed Dr. Ambarish Shah as its chief technology officer (CTO), reported Oppenheimer analyst Francois Brisebois in a Sept. 12 research note.
"We view Dr. Shah's appointment as CTO to be significant in DMAC's current development stage," Brisebois commented.
The Minnesota-based biopharma is developing novel treatments for neurological disorders and cardio-renal disease.
Impressive return potential
Oppenheimer reiterated its Outperform rating and $7 per share price target on DiaMedica, currently trading at about $3.43 per share.
From this price, the return to target represents a potential return for investors that is compelling: 104%.
A good fit
Shah, who previously worked at Bristol Myers Squibb, AstraZeneca, GSK and Pfizer, brings to DiaMedica extensive experience in protein development and manufacturing, reported Brisebois. Having helped advance more than 50 biologics through various stages of development, he has a solid track record.
The addition of Shah to DiaMedica's team comes at an important time for the company, Brisebois pointed out. It is preparing to restart the Phase 2/3 ReMEDy2 trial evaluating DM199, a recombinant protein replacement therapy designed to return KLK1 to normal levels, in acute ischemic stroke patients.
The investigational new drug application for the drug in this indication had been on clinical hold until recently. Before his appointment, Shah had advised DiaMedica through the final resolution of the hold.
"We expect to see the impact of [Shah's] expertise in the ReMEDy2 plans," Brisebois wrote.
Catalyst on the horizon
The biopharma is expected to resume ReMEDy2 soon, and doing so could move up its stock price, Brisebois noted.
Going forward, the trial design will be simpler, with only one primary endpoint, stroke recovery. DiaMedica is working with a new contract research organization on site selection and finalizing the enrollment timeline. Full enrollment for an interim analysis should be achieved sometime next year.
"Given the clinical hold resolution, we anticipate DM199 to have a significant impact for acute ischemic stroke patients as study enrollment resumes," commented Brisebois.
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