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InMed Pharmaceuticals Reports Full Year Fiscal 2024 Financial Results and Provides Business Update

September 30, 2024 | Last Trade: US$0.21 0.00 0.00
  • Advances INM-901 program targeting several biological pathways associated with Alzheimer's disease
  • Further develops INM-089 demonstrating neuroprotection in the treatment of dry Age-related Macular Degeneration
  • $4.6M revenues in fiscal year 2024, representing a 11% increase over the previous fiscal year

Vancouver, British Columbia--(Newsfile Corp. - September 30, 2024) - InMed Pharmaceuticals Inc. (Nasdaq: INM) ("InMed" or the "Company"), a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates for diseases with high unmet medical needs, today announced financial results for the fiscal year ending June 30, 2024 and provided a business update on the pharmaceutical drug development programs as well as the commercial segment for its wholly-owned subsidiary, BayMedica, LLC ("BayMedica").

The Company's full financial statements and related MD&A for the fiscal year ended June 30, 2024, are available at www.inmedpharma.com and at www.sedar.com.

Financial and operating highlights for fiscal 2024:

  • As of June 30, 2024, the Company's cash, cash equivalents and short-term investments were $6.6M
  • For the year ended June 30, 2024, the Company recorded a net loss of $7.7M, compared with a net loss of $7.9M for the previous year
  • Advanced INM-901 program with long-term preclinical studies, targeting multiple mechanisms of action in the treatment of Alzheimer's disease
  • Launched INM-089 preclinical program in the treatment of Age-Related Macular Degeneration ("AMD") and reported preclinical data demonstrating positive pharmacological effects
  • Strengthened patent portfolio with the issuance of three new U.S. patents across formulation and method of use, manufacturing and drug delivery formulation
  • Total sales for BayMedica were $4.6M in fiscal year 2024, representing an 11% increase over the previous fiscal year

Eric A. Adams, InMed Chief Executive Officer commented, "In fiscal year 2024, we made significant progress in our pharmaceutical pipeline, advancing two preclinical programs targeting Alzheimer's disease and dry AMD. Both these programs utilize proprietary small molecule drug candidates that activate both the CB1 and CB2 receptors, as well as other disease-relevant receptors. We are especially encouraged by the rapid advancement of the INM-901 program, which has been in development for less than a year since the drug candidate was selected last October."

The Alzheimer's treatment landscape has shifted significantly in recent years, underscoring the need for innovative, disease-modifying therapies and more convenient treatment options. Industry leaders now recognize that treating a complex disease like Alzheimer's will likely require a combination of therapies or a multi-faceted approach. With INM-901, InMed has developed an orally available small molecule that has demonstrated disease-modifying effects in preclinical studies by targeting multiple biological pathways, positioning us at the forefront of innovative Alzheimer's research."

Business Update

Pharmaceutical Development Programs

INM-901: Targeting several biological pathways associated with Alzheimer's disease

INM-901 is a proprietary small molecule drug candidate with multiple mechanisms of action in development as a potential treatment for Alzheimer's disease. Throughout fiscal 2024, the Company announced several key findings for INM-901:

  • A preferential signaling agonist of the CB1/CB2 receptors and has been shown to have neuroprotective effects, helping protect the neurons in the brain from damage and cell death
  • Impacts the peroxisome proliferator-activated receptors ("PPARs"), which have been shown to play an important role in diabetes and are also considered as one of the potential therapeutic targets for neurodegenerative disorders such as Alzheimer's disease.
  • Demonstrates reduced neuroinflammation and improved neurite growth and neuronal function, indicating the potential to restore damage caused by Alzheimer's disease.
  • Can be administered orally and achieve therapeutic levels in the brain comparable to those obtained through intraperitoneal ("IP") injection, offering many potential advantages over routes of administration of the currently approved products; and
  • Demonstrates significant improvement in cognitive function, memory, locomotor activity, anxiety-based behavior and sound awareness in long term preclinical behavioural studies

InMed continues to accelerate the development of its Alzheimer's program, with additional molecular analysis of a preclinical long-term dosing study currently underway to better define the mechanisms of action. Data read-out is expected in the coming months. Additionally, the development of the chemistry, manufacturing, and controls ("CMC") for both the drug substance and the drug product formulation is ongoing, with GLP studies in the planning stages to support an IND submission.

INM-089: Neuroprotection in the treatment of dry AMD

INM-089 is a proprietary small molecule drug candidate being studied in the treatment of dry AMD. Throughout fiscal 2024, the Company reported preclinical data for INM-089 demonstrating positive pharmacological effects including.

  • Data indicates that INM-089 may be more effective as a therapeutic treatment for dry AMD compared to neovascular, or wet, AMD
  • More specifically, data suggests INM-089 may be an important candidate for geographic atrophy ("GA") which is a more advanced stage of dry AMD
  • Enhanced neuroprotection of photoreceptors as well as improved photoreceptor function
  • Improved integrity of retinal pigment epithelium
  • Reduction in extracellular autofluorescent deposits, a hallmark of dry AMD.

INM-755: Dermatology Program - Continuing to seek strategic partnerships

Further development of the INM-755 CBN cream is expected to extend beyond its application in Epidermolysis bullosa ("EB"), potentially encompassing broader indications related to chronic, severe itch with larger target populations and potential commercial opportunities. InMed continues to assess potential partnership opportunities for the advancement of INM-755.

Continues to strengthen intellectual property portfolio

InMed continues to develop its patent portfolio and increase the commercial value of its programs to ensure the long-term protection of our drug research and development efforts. In recent months, InMed has been issued three U.S. patents: one for its formulation and method of use in the treatment of EB and related connective tissue disorders, one for a biosynthesis manufacturing processes and one for an ocular drug delivery formulation.

BayMedica commercial subsidiary

BayMedica, a leading supplier of non-intoxicating rare cannabinoids to the health and wellness sector, has experienced sustained revenue growth during the fiscal year 2024, reaching $4.6M, representing an 11% increase over the previous year. Sales and marketing efforts will remain focused on products that contribute highest margins, where BayMedica continues to hold a strong competitive position.

Financial commentary:

For the year ended June 30, 2024, the Company recorded a net loss of $7.7M, compared with a net loss of $7.9M for the previous year.

Research and development and patents expenses were $3.8M for year ended June 30, 2024, compared with $3.7M for the year ended June 30, 2023. However, we expect our research and development expenses to increase significantly in future periods as we continue to implement our business strategy.

The Company incurred general and administrative expenses of $5.3M for the year ended June 30, 2024, compared to $5.8M in the previous year. The decrease was primarily from a combination of changes in the InMed segment, including lower office and admin fees and investor relations expenses. This was offset by a slight increase in sales and marketing expenses within the BayMedica segment.

The Company realized sales of $4.6M in our BayMedica segment for the year ended June 30, 2024, representing an increase of $0.5M, or 11%, for the year ended June 30, 2024, as compared to the year ended June 30, 2023.

As of June 30, 2024, we had cash, cash equivalents and short-term investments of $6.6 million The Company expects its cash will be sufficient to fund its planned operating expenses and capital expend to the end of the fourth quarter of calendar year 2024, depending on the level and timing of realizing BayMedica revenues as well as the level and timing of the Company's operating expenses.

Table 1. Consolidated Balance Sheet

InMed Pharmaceuticals Inc. 
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
Expressed in U.S. Dollars

June 30,June 30, 
20242023 
(unaudited) 
ASSETS $  $  
Current 
    Cash and cash equivalents6,571,6108,912,517 
    Short-term investments43,06444,422 
    Accounts receivable (less provision for credit losses of $nil and $66,775 in June 30, 2024 and 2023, respectively)352,838260,399 
    Inventories, net1,244,3241,616,356 
    Prepaids and other current assets477,749498,033 
Total current assets8,689,58511,331,727 
 
Non-Current 
    Property, equipment and ROU assets, net1,249,999723,426 
    Intangible assets, net1,783,1981,946,279 
    Other assets100,000104,908 
Total Assets11,822,78214,106,340 
 
LIABILITIES AND SHAREHOLDERS' EQUITY 
Current 
    Accounts payable and accrued liabilities1,654,0111,608,735 
    Current portion of lease obligations317,797375,713 
    Deferred rent-16,171 
Total current liabilities1,971,8082,000,619 
 
Non-current 
    Lease obligations, net of current portion644,86515,994 
Total Liabilities2,616,6732,016,613 
Commitments and Contingencies (Note 13) 
 
Shareholders' Equity 
   Common shares, no par value, unlimited authorized shares: 8,918,956 and  
3,328,191 as of June 30, 2024 and 2023, respectively, issued and outstanding82,784,40077,620,252 
   Additional paid-in capital35,368,89935,741,115 
   Accumulated deficit(109,075,759)(101,400,209)
   Accumulated other comprehensive income128,569128,569 
Total Shareholders' Equity9,206,10912,089,727 
Total Liabilities and Shareholders' Equity11,822,78214,106,340 
Related Party Transactions (Note 14) 

Table 2. Consolidated Statements of Operations

InMed Pharmaceuticals Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Expressed in U.S. Dollars

Year Ended 
June 30  
20242023 
 $  $  
 
Sales4,597,7304,135,561 
Cost of sales3,496,8172,732,525 
Gross profit1,100,9131,403,036 
 
Operating Expenses 
    Research and development and patents3,765,0283,732,056 
    General and administrative5,250,7155,847,518 
    Amortization and depreciation219,600202,249 
    Foreign exchange loss61,92148,175 
Total operating expenses9,297,2649,829,998 
 
Other Income (Expense) 
    Interest and other income527,901492,440 
Loss before income taxes(7,668,450)(7,934,522)
 
Tax expense(7,100)(13,100)
Net loss for the period(7,675,550)(7,947,622)
 
Net loss per share for the period 
    Basic and diluted(1.01)(3.25)
Weighted average outstanding common shares 
    Basic and diluted7,621,0752,448,458 

Table 3. Consolidated Statements of Cash Flows

InMed Pharmaceuticals Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
For the year ended June 30, 2024 and 2023
Expressed in U.S. Dollars

June 30, 2024June 30, 2023 
 
Cash provided by (used in): $  $  
 
Operating Activities 
Net loss              (7,675,550)              (7,947,622) 
Items not requiring cash: 
    Amortization and depreciation219,600202,249 
    Share-based compensation137,714278,155 
    Amortization of right-of-use assets384,918393,748 
    Interest income received on short-term investments(1,250)(803)
    Unrealized foreign exchange loss12,2621,183 
    Inventory write-down305,812308,937 
    Credit losses-46,775 
Changes in operating assets and liabilities: 
    Inventories66,220565,561 
    Prepaids and other currents assets20,284299,192 
    Other non-current assets4,9085,507 
    Accounts receivable(92,439)(219,147)
    Accounts payable and accrued liabilities45,282(806,530)
    Deferred rent(16,171)16,171 
    Lease obligations(397,422)(426,575)
Total cash used in operating activities(6,985,832)(7,283,199)
 
Investing Activities 
    Payment of acquisition consideration-(500,000)
    Payment of deposit on equipment-(1,790)
    Sale of short-term investments42,08242,268 
    Purchase of short-term investments(42,082)(42,268)
    Purchase of property and equipment(9,293)(160,014)
Total cash (used in) provided by investing activities(9,293)(661,804)
 
Financing Activities 
Shares issued for cash 
share issuance costs 
Proceeds from the exercise of pre-funded warrants175646 
Proceeds from private placement net of issuance costs4,654,04310,680,008 
Total cash provided by financing activities4,654,21810,680,654 
 
Increase in cash during the period(2,340,907)2,735,649 
Cash and cash equivalents beginning of the period8,912,5176,176,866 
Cash and cash equivalents end of the period6,571,6108,912,515 
 
SUPPLEMENTARY CASH FLOW INFORMATION: 
Cash Paid During the Year for: 
    Income taxes$-$- 
    Interest$-$- 
 
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: 
Fair value of warrant modification recorded as equity issuance costs$3,508,749$- 
    Preferred investment options to its placement agent$325,699$691,483 
    Recognition of Right-of-use asset and corresponding operating lease liability$968,376$- 

About InMed

InMed Pharmaceuticals is a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates targeting the CB1/CB2 receptors. InMed's pipeline consists of three drug development programs in the treatment of Alzheimer's, ocular and dermatological indications. Together with our subsidiary BayMedica, we are a global leader in the manufacturing, development and commercialization of products based on rare cannabinoids and their proprietary, small molecule drug analogs. For more information, visit www.inmedpharma.com.

Investor Contact:

Colin Clancy
Vice President, Investor Relations
and Corporate Communications
T: +1.604.416.0999
E: This email address is being protected from spambots. You need JavaScript enabled to view it.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is based on management's current expectations and beliefs and is subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking information in this news release includes statements about: expecting revenue fluctuations based on distributor order patterns; remaining optimistic about the long-term growth potential in the rare cannabinoids sector as the business dynamics and commercial opportunities continue to mature; advancing our pharmaceutical pipeline using rare cannabinoids for potential therapeutic applications in dermatology, ocular and neurodegenerative disease; the efficacy of INM-901, INM-901's ability to treat Alzheimer's, marketability and uses for INM-901, the results of further studies into INM-901 and acceleration of the development of InMed's Alzheimer's program; the efficacy of INM-089, INM-089's ability to treat AMD, marketability and uses for INM-089, the results of further studies into INM-089 and the further development of InMed's AMD program; further development and commercial uses of the INM-755; expectations that the Company's cash will be sufficient to fund its planned operating expenses and capital expenditure requirements to the end of the fourth quarter of calendar year 2024.

Additionally, there are known and unknown risk factors which could cause InMed's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks and uncertainties facing InMed's stand-alone business is disclosed in InMed's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission on www.sec.gov.

All forward-looking information herein is qualified in its entirety by this cautionary statement, and InMed disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

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