WINNIPEG, MANITOBA--(Marketwire - April 9, 2009) - DiaMedica Inc. (TSX VENTURE:DMA), a drug discovery and development company focused on novel treatments for Type 2 diabetes today announces that the company has received a contribution of up to $492,316 in addition to both technical and business oriented advisory services from the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP). The funding will be applied to the Company's DM-99 development program for the treatment of type 2 diabetes.
"We are very pleased that the NRC-IRAP has seen the merit in and chosen to support the development of this exciting technology," states Reggie Bowerman, President and CEO of DiaMedica Inc. "DiaMedica has previously announced encouraging preclinical and proof-of-concept clinical trial results with DM-99 and we will use this funding to further advance this important development program".
DiaMedica is developing novel treatments for type 2 diabetes based on a newly discovered 'nerve reflex' mechanism for which the Company has been issued two U.S. patents. DiaMedica completed a successful phase II trial with its lead product, DM-71, which demonstrated the ability to reduce HbA1c (blood sugar) levels and weight in humans. DiaMedica also completed a successful phase II trial with its second compound, DM-83, designed to measure changes in insulin and glucose. The success of this clinical trial was highly significant as DiaMedica believes it validates the novel 'nerve reflex' mechanism that would designate the Company's drugs as first-in-class. Preclinical results from Vanderbilt University have shown that DM-99 is able to cause tissue to increase its uptake of glucose from the blood by over 40% (p less than 0.001) during the first 60 minutes of treatment. Results from a phase IIa clinical trial demonstrated encouraging results that DM-99 may be able to lower blood glucose in type 2 diabetes patients after consumption of a meal. DiaMedica has been recognized as one of the Top Ten(TM) Life Science companies in Canada for the past two years by the Ottawa Centre for Research and Innovation.
Caution Regarding Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). These forward-looking statements relate to, among other things, our objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, including, without limitation, our anticipated future operating results, and can, in some cases, be identified by the use of words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.
These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: DiaMedica's early stage of development, lack of product revenues and history of operating losses, uncertainties related to clinical trials and product development, rapid technological change, uncertainties related to forecasts, competition, potential product liability, additional financing requirements and access to capital, unproven markets, supply of raw materials, income tax matters, management of growth, partnerships for development and commercialization of technology, effects of insurers' willingness to pay for products, system failures, dependence on key personnel, foreign currency risk, risks related to regulatory matters and risks related to intellectual property and other risks detailed from time to time in DiaMedica's filings with Canadian securities regulatory authorities, as well as DiaMedica's ability to anticipate and manage the risks associated with the foregoing. Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found in the body of this news release, as well as under the heading "Risk Factors" contained in DiaMedica's final long-form prospectus dated March 12, 2007. DiaMedica cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on DiaMedica's forward-looking statements to make decisions with respect to DiaMedica, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
These risks and uncertainties should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, DiaMedica cannot provide assurance that actual results will be consistent with these forward-looking statements. DiaMedica undertakes no obligation to update or revise any forward-looking statement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Kevin Richardson, Ph.D