DiaMedica announces investment by Hermed Capital Healthcare Fund
Will fund the development of clinical stage product for acute ischemic stroke and diabetic kidney disease markets
DiaMedica, a Canadian biopharmaceutical firm focused on developing treatments for neurological and kidney diseases, has announced a US$4 million investment with Hermed Capital Healthcare Fund.
Hermed Capital Healthcare Fund is a healthcare investment fund in partnership with Shanghai Fosun Pharmaceutical Group and SK Group of South Korea.
Under the agreement, Hermed Capital will invest $4m for 20 million common DiaMedica shares in two tranches. The first tranche will be $1m, while the second, of $3m, is expected to close in August.
The funding will be used to advance DiaMedica's research and development programmes for its DM199 clinical stage product for the treatment of neurological and kidney diseases.
'We are delighted to have Hermed Capital provide a strategic investment to further validate the potential of DM199 in China and for worldwide use for the treatment of neurological and kidney diseases,' said Rick Pauls, DiaMedica's President and CEO. 'DiaMedica is funded through its next major milestones, including upcoming clinical trial.'
Dr Jerry Xiao, Managing Director of Hermed Capital, added: 'We look forward to working with DiaMedica in positioning DM199 for the growing Chinese markets of acute ischemic stroke and diabetic kidney disease markets, as a strategic partner we'll leverage our resources in China. DM199 will also provide further commercial opportunities globally.'
