DiaMedica Inc.

DiaMedica Inc.

December 06, 2007 09:09 ET

DiaMedica Inc.: DM-83 Restores Meal Associated Insulin Sensitivity in Pre-clinical Study

WINNIPEG, MANITOBA--(Marketwire - Dec. 6, 2007) - DiaMedica Inc. (TSX VENTURE:DMA), a drug discovery and development company focused on novel treatments for type 2 diabetes is pleased to announce final pre-clinical data for DM-83, its second clinical drug candidate. In the study, meal associated insulin sensitivity (MIS) was restored to normal levels by DM-83 with high statistical significance (p equals 0.001). These positive results support the Company's progression into a phase II human study with DM-83 for type 2 diabetes. DM-83 is a novel combination of two known drugs with well established safety profiles that are used to treat other unrelated human conditions.

The study was conducted in the Lautt Laboratory, Department of Pharmacology and Therapeutics, Faculty of Medicine, University of Manitoba, and tested post-meal insulin sensitivity in animals on normal diet compared to animals whose insulin sensitivity has been impaired by a high sugar diet. The animals in each group were further split into groups receiving no treatment, treatment with DM-83, or treatment with each of the components of DM-83 alone.

"MIS is a normal reaction to a meal. If MIS does not occur, a state of insulin resistance exists that results in elevations of glucose, insulin and fat," stated Dr. Wayne Lautt, Chief Scientific Officer of DiaMedica Inc. "DM-83 has worked extremely well treating both insulin sensitivity and post-meal glucose, as we have expected based upon our mechanism, and we look forward to seeing the effect confirmed in man in our upcoming Phase II study."

The degree of MIS in the control group of animals was 49.4% (+/-7.2), and was totally eliminated in the impaired animals being lowered to -5.7% (+/-2.7). Treatment with DM-83 in the impaired animals restored MIS to 45.0% (+/-6.4). In addition to illustrating the efficacy of DM-83 by fully restoring MIS to levels equivalent to the non-diabetic animal, the results of the study clearly established both components of DM-83 were required to improve insulin sensitivity in the diabetic animal.

DiaMedica has been working to advance DM-83 into human studies based upon the positive preliminary results reported in September 2007. The Company expects to provide an update on the Phase II study in the near term.

Diabetes is a widespread and rapidly growing disease, affecting 177 million people world wide. Over 90% of diabetics are of the Type 2 form. Global sales of oral diabetes drugs total $6 billion today and are expected to climb to $11 billion by 2011.

About DM-83

DM-83 has demonstrated the ability to restore insulin sensitivity in a type 2 diabetes animal model. The product is a novel combination of two known drugs with well established safety profiles that are used to treat other unrelated human conditions. This product addresses a new target in the treatment of diabetes.

About DiaMedica

DiaMedica is developing novel treatments for various stages of type 2 diabetes. The Company recently completed a phase II clinical trial with its lead product DM-71 which demonstrated the ability to reduce HbA1c levels in man. The Company has two other drugs in its clinical pipeline, DM-83 and DM-99.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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