Struggling DiaMedica Inc. Cuts Jobs; CFO Out

December 10, 2014
By Riley McDermid, BioSpace.com Breaking News Sr. Editor

Development stage biopharmaceutical firm DiaMedica Inc. is undergoing a wholescale restructuring and has fired its chief financial officer in a bid to preserve cash, the company said late Tuesday. It also announced it will be laying off staff, but did specify how many or when.

Canada-based DiaMedica said in a release that the effort is aimed at "preserving cash, reducing operating costs and re-positioning the company going forward." As such, Chief Financial Officer John Savage will be out of the C-level suite, but will continue to work with the firm on a part-time, consultancy basis.

"We believe these immediate actions, while difficult, are important for maintaining operations as we advance and transition development plans of DM199 for acute vascular indications affecting the kidneys, heart and brain," said Rick Pauls, president and chief executive, in a statement.

DiaMedica is best known for its research into less common diseases and orphan drug therapies, including new approaches to treat acute vascular diseases.Its lead product, DM199, is recombinant human tissue kallikrein-1 protein (rhKLK1). It trades on the TSX Venture Exchange in Canada under the trading symbol DMA.