InMed Pharmaceuticals Inc.

InMed Pharmaceuticals Inc. Annual Report - Key Takeaways for Investors

Let’s cut through the noise and break down what really matters for investors this year. No fluff—just straight talk about InMed’s performance and prospects.

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What Does InMed Do?

InMed is a biotech company developing cannabinoid-based treatments for serious conditions like Alzheimer’s disease, dry age-related macular degeneration (AMD), and Epidermolysis Bullosa (EB), a rare skin disorder. They also own BayMedica, which sells non-intoxicating cannabinoids (e.g., CBC, CBDV) to wellness brands for supplements, cosmetics, and pet care.

Key Update: No approved drugs yet, but three candidates are in testing:

• INM-901 (Alzheimer’s): Preclinical studies show it crosses the blood-brain barrier and may reduce brain inflammation.
• INM-755 (EB): Completed a Phase 2 trial with 19 patients (short of the 20-patient goal). Results suggested safety and possible wound-healing benefits.
• INM-089 (dry AMD): Early-stage development.

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Financial Health: Growing or Struggling?

• Revenue: The company didn’t provide specific revenue figures this year. Most income likely comes from grants, partnerships, and BayMedica’s ingredient sales—not drug sales.
• Cost Pressures:
  • Inflation increased R&D and manufacturing costs (exact % not disclosed).
  • Relies entirely on third-party manufacturers, risking delays or price spikes.
• Cash Reserves: Enough to operate for ~2 years at current spending (exact amount not shared).
• Debt: Low, but may need to raise more cash soon, potentially diluting shares.

Bottom Line: Still unprofitable. High burn rate with no near-term revenue from drugs.

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Big Wins vs. Red Flags

✅ Wins:

• First-ever Phase 2 trial for a cannabinol drug (INM-755 for EB) showed safety and hinted at efficacy.
• Preclinical Alzheimer’s drug (INM-901) shows unique potential to target brain inflammation.
• Expanded pipeline into Alzheimer’s and dry AMD—massive markets with few treatments.
• Partnered with an unnamed pharma company to share R&D costs.

🚩 Red Flags:

• Tiny Team: Only 15 employees managing multiple complex trials and partnerships.
• INM-755 Stalled: Paused partnership efforts for EB drug due to lack of interest.
• Legal Risks: Ongoing dispute with a third-party licensor (details undisclosed).
• Manufacturing Dependency: No backup suppliers for key ingredients.

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Risks to Watch Closely

1. Clinical Trial Failures: Most drug candidates fail—especially in Alzheimer’s, where success rates are <10%.
2. Cash Crunch: Likely needs to raise more money within 2 years. High interest rates = expensive loans or share dilution.
3. No Sales Team: Relies entirely on partners to commercialize drugs, reducing profit potential.
4. Regulatory Risks: Must comply with strict healthcare laws (e.g., anti-bribery rules, data privacy). New AI regulations could raise costs if used in R&D.

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Competition Check

InMed is a small player vs. giants like Pfizer or Jazz Pharma. Their edge? Proprietary tech to produce cannabinoids cheaply. But larger rivals could easily outspend them if cannabinoid drugs gain traction.

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2024 Goals

• Finalize Phase 2 results for INM-755 (EB).
• Advance Alzheimer’s and dry AMD drug candidates.
• Secure partnerships to fund trials (critical for survival).

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Should You Invest?

High-Risk, High-Reward Play:

• 👍 Potential Upside: If Alzheimer’s or EB drugs succeed, shares could surge (2x–5x possible).
• 👎 Downside Risks: High chance of trial failures, cash shortages, or partnership struggles.

Who Should Invest?

• Speculative investors comfortable with biotech volatility.
• Avoid if you prefer stable returns or dislike uncertainty.

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The Bottom Line

InMed is a “lottery ticket” stock with slightly better odds than most early-stage biotechs. Their focus on Alzheimer’s and rare diseases is compelling, but the lack of revenue, tiny team, and partnership dependency make this a very risky bet.

Watch Closely: Trial results, partnership news, and cash reserves. If any fail, tread carefully.

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This summary is based on available data and isn’t financial advice. Always do your own research before investing. 😊