InMed Pharmaceuticals Reports Third Quarter Fiscal 2024 Financial Results and Provides Business Update
InMed Pharmaceuticals (NASDAQ: INM) released its financial results for Q3 fiscal 2024, ending March 31, 2024.
The company reported positive preclinical data for its Alzheimer's disease (INM-901) and dry AMD (INM-089) programs. InMed closed the quarter with $7.9 million in cash.
The BayMedica commercial business earned $3.3 million over nine months, an 83% increase from the previous year. Q3 revenues remained flat at $1.2 million, with BayMedica operating profitably.
The company recorded a net loss of $5.7 million for the quarter, down from $7.6 million the previous year. R&D and patents expenses dropped to $2.6 million from $3.1 million. Cash reserves should cover expenses into Q4 2024.
Notably, Alexandra Mancini, SVP Clinical & Regulatory Affairs, will retire effective June 30, 2024.
- Positive preclinical data for INM-901 (Alzheimer's) and INM-089 (dry AMD) programs.
- BayMedica revenues grew 83% YoY to $3.3 million for nine months.
- BayMedica operated profitably in Q3 with flat quarter-over-quarter revenues at $1.2 million.
- Net loss decreased to $5.7 million from $7.6 million YoY.
- R&D and patents expenses reduced to $2.6 million from $3.1 million YoY.
- Cash reserves decreased from $8.9 million to $7.9 million since June 30, 2023.
- General and administrative expenses remain high at $4 million for nine months.
- BayMedica revenue growth flat quarter-over-quarter at $1.2 million.
- Expected revenue fluctuations in future quarters for BayMedica.
- Retirement of key executive, Alexandra Mancini, could affect continuity.
Insights
InMed Pharmaceuticals' recent financial results for Q3 2024 show a mix of promising and challenging aspects. The company closed the quarter with a
Revenue from BayMedica, InMed's commercial business unit, was stable at
General and administrative expenses and R&D costs have decreased, pointing towards improved operational efficiency. However, the company still faces significant cash burn, necessitating careful cash flow management moving forward. The reduction in net loss is a positive trend but investors need to closely monitor revenue growth and the company's ability to control expenses.
Given these factors, the financial analyst rates this news as neutral for its immediate impact on InMed's stock.
The promising preclinical data from InMed's Alzheimer's (INM-901) and dry AMD (INM-089) programs are noteworthy. For Alzheimer's, the INM-901 drug candidate shows potential through its impact on CB1/CB2 receptors, reduced neuroinflammation and improved neuronal function. These indicators are important as Alzheimer's currently has very few effective treatments and remains a significant unmet medical need.
The dry AMD data further bolster confidence, particularly the neuroprotective effects of INM-089 on photoreceptors and improved retinal health. In a competitive landscape with limited effective treatments, these findings could position InMed favorably for future market capture. However, it's essential to recognize that preclinical success doesn't always translate to clinical efficacy in human trials.
Both programs are at a preclinical stage, meaning they are several years away from potential commercialization. Investors should balance the excitement around these advancements with the inherent risks and timelines of drug development.
In conclusion, these developments are positive for the company's long-term outlook, but cautious optimism is warranted given the early stage of development.
The news of BayMedica's commercial performance offers insights into market dynamics for rare cannabinoids. The steady revenue of
Investors should be mindful of the company's forecast for revenue fluctuations in upcoming quarters, signifying market volatility or dependency on certain clients or contracts. Nevertheless, the long-term growth potential in the rare cannabinoids sector appears robust, driven by increasing consumer acceptance and scientific validation of these compounds.
This segment's performance is important for InMed as it provides a revenue stream that supports its broader pharmaceutical R&D efforts.
The market research analyst views this news as positive for BayMedica's commercial prospects, potentially enhancing investor confidence in InMed's diversified strategy.
- Reported positive preclinical data in both its Alzheimer's and dry AMD programs
- Closed Fiscal Q3 with cash position of US
$7.9 million
Vancouver, British Columbia--(Newsfile Corp. - May 14, 2024) - InMed Pharmaceuticals Inc. (NASDAQ: INM) ("InMed" or the "Company"), a clinical stage pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates, today announced financial results and business update for the third quarter of the fiscal year 2024, which ended March 31, 2024.
The Company's full financial statements and related MD&A for the third quarter ended March 31, 2024, are available at www.inmedpharma.com, www.sedar.com and at www.sec.gov.
Eric A. Adams, InMed President and CEO, commented, "The third quarter of fiscal year 2024 was another positive quarter for the Company as we continue to make exciting progress in our pharmaceutical pipeline and deliver steady growth in our commercial business. Last month we announced important updates in our two preclinical programs in the treatment of Alzheimer's disease ("ALZ") and dry Age-related Macular Degeneration ("dry AMD"). Both programs utilize proprietary small molecule drug candidates activating both the CB1 / CB2 receptors as well as other disease-relevant receptors. We are highly encouraged by the positive findings and we are committed to further advancing our research in these two highly underserved indications."
Adams continued, "Revenues from the BayMedica commercial business remain consistent with the previous quarter and BayMedica operated as a profitable commercial business unit in the current quarter. We remain optimistic for the sector as more brands start to incorporate rare cannabinoids into their product portfolios."
Business update
Pharmaceutical Development Programs
INM-901: A multipronged approach in treatment of Alzheimer's disease.
INM-901 is a proprietary small molecule drug candidate being developed as a potential treatment for ALZ employing multiple mechanisms of actions. On April 4, 2024, the Company announced additional preclinical data demonstrating INM-901's positive pharmacological effects. Results included:
- INM-901 is a preferential signaling agonist of the CB1/CB2 receptors and impacts the PPAR signaling pathway;
- INM-901 demonstrates reduced neuroinflammation and improved neuronal function; and
- mRNA data from INM-901 preclinical studies support the observations made in the previously released behavior studies in locomotor activity, cognition and memory.
InMed continues to accelerate the development of its ALZ program, with long-term behavioural and mechanism of action / receptor interaction studies currently underway. Data read-out expected in calendar 3Q 2024.
Additionally, the Company recently announced the addition of Dr. David G. Morgan, a leader in neurodegenerative disease, to its Scientific Advisory Board ("SAB"), reinforcing the Company's commitment to advancing it's INM-901 program.
INM-089: Neuroprotection in the treatment of dry AMD
INM-089 is another proprietary small molecule drug candidate being studied in the treatment of Age-related Macular Degeneration ("AMD"). In April, the Company announced additional preclinical data for INM-089 further demonstrating positive pharmacological effects. Results from INM-089 preclinical studies included:
- 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 common in more advanced cases of dry AMD;
- Enhanced neuroprotection of photoreceptors as well as improved photoreceptor function;
- Improved integrity of retinal pigment epithelium; and
- Reduction in extracellular autofluorescent deposits, a hallmark of dry AMD.
The Company has strategically prioritized the utilization of its proprietary small molecule drug candidates in its drug development initiatives, resulting in the INM-089 program for the treatment of dry AMD taking precedence over the INM-088 program in the treatment of glaucoma. Therefore, the Company will not be advancing INM-088 in the immediate future. Notably, the initial research and data from the INM-088 program have played an instrumental role in shaping the development of INM-089 program.
BayMedica Commercial Business
BayMedica revenues were
Financial and Corporate Highlights:
- Net loss was
$5.7 million for the quarter ended March 31, 2024, compared to a net loss of$7.6 million in the same period last year.
- Research and development and patents expenses were
$2.6 million for the nine months ended March 31, 2024, compared with$3.1 million for the nine months ended March 31, 2023.
- General and administrative expenses were
$4 million for the nine months ended March 31, 2024, compared with$4.4 million for the same period last year.
- As of March 31, 2023, the Company's cash, cash equivalents and short-term investments were
$7.6 million , which compares to$8.9 million on June 30, 2023.
Based on current forecasts, the Company expects its cash will be sufficient to fund its planned operating expenses and capital expenditure requirements into the fourth quarter of calendar year 2024, depending on the level and timing of realizing BayMedica revenues from the sale of products in the Health & Wellness sector as well as the level and timing of our operating expenses.
Ms. Alexandra D.J. Mancini, Senior Vice President, Clinical & Regulatory Affairs, provided notice to the Company and the Company's Board of Directors of her intention to retire from her position, effective June 30, 2024. Ms. Mancini intends to continue in a consultancy capacity to ensure a smooth transition of both the INM-755 program and ongoing regulatory matters. The Company would like to thank Ms. Mancini for her significant, valuable contributions, and leadership during her tenure with InMed and wish her all the best in her retirement. We congratulate her on a tremendous career in the biotech industry, having played an important role in developing and bringing to market several pharmaceutical products in many disease areas.
Table 1. InMed Pharmaceuticals Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
Expressed in U.S. Dollars
| March 31, | ||||||||
| 2024 | June 30, | |||||||
| (unaudited) | 2023 | |||||||
| $ | $ | |||||||
| ASSETS | ||||||||
| Current | ||||||||
| Cash and cash equivalents | 7,600,598 | 8,912,517 | ||||||
| Short-term investments | 43,085 | 44,422 | ||||||
| Accounts receivable, net of allowance for credit losses of | 207,681 | 260,399 | ||||||
| Inventories | 1,193,952 | 1,616,356 | ||||||
| Prepaids and other current assets | 1,018,686 | 498,033 | ||||||
| Total current assets | 10,064,002 | 11,331,727 | ||||||
| Non-Current | ||||||||
| Property, equipment and ROU assets, net | 1,370,969 | 723,426 | ||||||
| Intangible assets, net | 1,823,745 | 1,946,279 | ||||||
| Other assets | 100,000 | 104,908 | ||||||
| Total Assets | 13,358,716 | 14,106,340 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current | ||||||||
| Accounts payable and accrued liabilities | 1,183,285 | 1,608,735 | ||||||
| Current portion of lease obligations | 345,545 | 375,713 | ||||||
| Deferred rent | - | 16,171 | ||||||
| Total current liabilities | 1,528,830 | 2,000,619 | ||||||
| Non-current | ||||||||
| Lease obligations, net of current portion | 725,236 | 15,994 | ||||||
| Total Liabilities | 2,254,066 | 2,016,613 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ Equity | ||||||||
| Common shares, no par value, unlimited authorized shares: | ||||||||
| 6,344,970 (June 30, 2023 - 3,328,191) issued and outstanding | 80,606,863 | 77,620,252 | ||||||
| Additional paid-in capital | 37,507,306 | 35,741,115 | ||||||
| Accumulated deficit | (107,138,088 | ) | (101,400,209 | ) | ||||
| Accumulated other comprehensive income | 128,569 | 128,569 | ||||||
| Total Shareholders’ Equity | 11,104,650 | 12,089,727 | ||||||
| Total Liabilities and Shareholders’ Equity | 13,358,716 | 14,106,340 | ||||||
| Related Party Transactions | ||||||||
| Subsequent Events | ||||||||
Table 2. InMed Pharmaceuticals Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Expressed in U.S. Dollars
| For the Three Months Ended | For the Nine Months Ended | |||||||||||
| 31-Mar | 31-Mar | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| $ | $ | $ | $ | |||||||||
| Sales | 1,172,601 | 1,033,925 | 3,314,663 | 1,824,496 | ||||||||
| Cost of sales | 883,143 | 841,414 | 2,416,417 | 1,415,068 | ||||||||
| Inventory write-down | - | - | 263,404 | 576,772 | ||||||||
| Gross profit | 289,458 | 192,511 | 634,842 | (167,344 | ) | |||||||
| Operating Expenses | ||||||||||||
| Research and development and patents | 656,764 | 878,303 | 2,558,648 | 3,108,312 | ||||||||
| General and administrative | 1,374,095 | 1,412,727 | 4,036,784 | 4,438,083 | ||||||||
| Amortization and depreciation | 54,767 | 50,689 | 164,833 | 148,786 | ||||||||
| Foreign exchange loss | 48,156 | 2,733 | 36,717 | 79,287 | ||||||||
| Total operating expenses | 2,133,782 | 2,344,452 | 6,796,982 | 7,774,468 | ||||||||
| Other Income (Expense) | ||||||||||||
| Interest and other income | 121,458 | 155,497 | 424,261 | 343,881 | ||||||||
| Loss before income taxes | (1,722,866 | ) | (1,996,444 | ) | (5,737,879 | ) | (7,597,931 | ) | ||||
| Tax expense | - | (1,500 | ) | - | (11,300 | ) | ||||||
| Net loss for the period | (1,722,866 | ) | (1,997,944 | ) | (5,737,879 | ) | (7,609,231 | ) | ||||
| Net loss per share for the period | ||||||||||||
| Basic and diluted | (0.18 | ) | (0.60 | ) | (0.82 | ) | (3.53 | ) | ||||
| Weighted average outstanding common shares | ||||||||||||
| Basic and diluted | 9,612,973 | 3,328,191 | 6,961,938 | 2,156,283 | ||||||||
FAQ
What were InMed Pharmaceuticals' financial results for Q3 2024?
What positive data was reported for INM-901 and INM-089?
How did BayMedica perform financially in Q3 2024?
What are the future revenue expectations for BayMedica?
What changes in executive leadership were announced?
