Full Press Release Details
InMed Pharmaceuticals Reports First
Quarter Fiscal 2022 Financial Results and Provides Business Update
Vancouver, BC - November 10, 2021
- InMed Pharmaceuticals Inc. ("InMed" or the "Company") (Nasdaq: INM), a leader in the development,
manufacturing and commercialization of rare cannabinoids, today announced financial results for the first quarter of fiscal year 2022
which ended September 30, 2021.
"The first quarter of fiscal 2022 saw positive momentum
across all of our programs," says Eric A. Adams, InMed President & CEO. "With the completion of the BayMedica Inc. ("BayMedica")
acquisition, our integrated teams are working together to identify rare cannabinoids in BayMedica's pipeline for commercialization
in the consumer health and wellness industry. For the duration of fiscal year 2022, we will be focused on growing revenues through the
launch of these selected rare cannabinoids, in addition to expanding sales of BayMedica's Prodiol CBC (cannabichromene) and
progressing our existing programs."
On October 13, 2021, InMed completed the acquisition of BayMedica
creating an industry leader in the manufacturing and commercialization of rare cannabinoids. Management's immediate focus is to
expedite the integration of both companies and accelerate commercial activities including driving wholesale B2B revenues of BayMedica's
current Prodiol CBC product to the consumer health and wellness sector.
Management anticipates introducing several new, rare cannabinoids
over the next few quarters with a specific focus on high demand, attractive margin products and expects to grow revenues considerably
in the short-to-medium term.
Additionally, both InMed and BayMedica science teams will
continue to explore the therapeutic potential of BayMedica novel cannabinoid analogs to incorporate into the Company's pharmaceutical
drug development programs.
The Company continues to further optimize IntegraSyn
as a solution for large-scale, pharmaceutical-grade Good Manufacturing Practice ("GMP") production of rare cannabinoids. The
team is currently focused on process optimization to prepare the manufacturing process to be GMP-ready for pharmaceutical quality production.
Next step is to advance production to a larger batch and continue to improve upon the previously announced industry leading yield of 5g/L.
The Company continues to believe IntegraSyn will be
a preferred method for pharmaceutical production and may dovetail with BayMedica's biosynthesis and chemical synthesis manufacturing
approaches for non-pharmaceutical applications.
INM-755 for the treatment of Epidermolysis Bullosa
On September 30, the Company announced it had commenced its
Phase 2 clinical trial, the 755-201-EB study, of INM-755 (cannabinol) cream in the treatment of EB, marking the first time cannabinol
has advanced to a Phase 2 clinical trial to be studied as a therapeutic option to treat a disease. Additionally, InMed has submitted a
request for a pre-Investigational New Drug ("IND") meeting with the US Food and Drug Administration ("FDA") to
discuss potential next steps in the INM-755 clinical program.
The 755-201-EB study is designed to enroll up to 20 patients.
InMed will evaluate the safety of INM-755 (cannabinol) cream and its preliminary efficacy in treating symptoms and wound healing over
a 28-day treatment period. All four subtypes of inherited EB; EB Simplex, Dystrophic EB, Junctional EB, and Kindler Syndrome are eligible
The study is expected to take place at eleven sites across
seven countries including Austria, Germany, Greece, France, Italy, Israel and Serbia and regulatory authority and ethics approvals are
in place in five countries. Currently, Clinical Trial Agreements are fully executed with 5 sites and patient screening is underway at
the first site. The Company is seeking to expand the study into an eighth country, Spain, with two more sites.
The 755-201-EB study
follows two completed Phase 1 studies of INM-755 (cannabinol) cream, including treatment on intact skin and treatment on wounded skin,
both in healthy volunteers. The Phase 1 studies provided a strong body of evidence demonstrating the overall safety and tolerability of
INM-755 (cannabinol) cream is a topical therapy to treat
EB and potentially other dermatological diseases. Preclinical data demonstrate that INM-755 (cannabinol) cream may help relieve hallmark
EB symptoms, such as inflammation and pain, as well potentially restore the integrity of the skin in a subset of EB Simplex patients.
INM-088 for the treatment of glaucoma
On August 17, 2021, InMed presented preclinical data at the
H.C. Wainwright Ophthalmology Conference demonstrating that cannabinol ("CBN") was effective at providing neuroprotection
to the retina ganglion cells and reducing intraocular pressure in glaucoma models. InMed has continued to develop a larger scale drug
product manufacturing process, completed dose-ranging studies and conducted topline clinical study design work with its clinical research
Data from preclinical studies of INM-088 show the effectiveness
of cannabinol at reducing cell death in retinal ganglion cells, an indication of potential neuroprotection which may lead to extended
retention of vision in glaucoma and other ocular diseases.
We continue to work towards completing our preclinical studies of our
glaucoma program in preparation for human clinical trials and estimate to file regulatory applications in the second half of fiscal 2022
seeking to initiate human clinical testing with INM-088.
On November 3, 2021, InMed filed an international patent application
seeking commercial exclusivity for the potential treatment of neurodegenerative diseases such as Alzheimer's Disease, Parkinson's
Disease, Huntington's Disease and others by demonstrating neuroprotection and enhanced neuronal function using a rare cannabinoid.
This Patent Cooperation Treaty ("PCT") application, entitled
"Compositions and Methods for Treating Neuronal Disorders with Cannabinoids", specifies a rare cannabinoid that may inhibit
or slow the progression of neurodegenerative diseases by providing neuroprotection and promote neurite outgrowth in a population of affected
Expanding InMed's patent portfolio to include, in addition to
CBN, an incremental rare cannabinoid for the potential treatment of major neurodegeneration indications demonstrates the Company's
continued commitment to it's pharmaceutical programs and the potential of rare cannabinoids in treating important diseases.
InMed will be hosting analyst update teleconferences on a
semi-annual basis, with the next teleconference to be hosted for the second quarter 2022 fiscal results. InMed also plans to host a webinar
to discuss the integration of BayMedica and outline corporate plans for calendar year 2022.
Financing Activities and Results of Operations (expressed
On July 2, 2021, the Company closed a $12.0 million private
placement. Under the terms of the private placement, an aggregate of 890,000 common shares and 3,146,327 pre-funded warrants, and warrants
to purchase up to an aggregate of 4,036,327 common shares, were purchased. The warrants have an exercise price of $2.848 per share, are
exercisable immediately and have a term of five years. After deducting the placement agent fees and estimated offering expenses payable
by the Company, the Company received net proceeds of approximately $11.0 million.
For the three months ended September 30, 2021, the Company
recorded a net loss of $3.0 million, or $0.25 per share, compared with a net loss of $1.6 million, or $0.31 per share, for the three months
ended September 30, 2020.
Research and development expenses were $1.5 million for the
three months ended September 30, 2021, compared with $0.9 million for the three months ended September 30, 2020. The increase in research
and development and patents expenses was primarily due to increased activities related to the INM-755 clinical trials.
The Company incurred general and administrative expenses
of $1.4 million for the three months ended September 30, 2021, compared with $0.6 million for the three months ended September 30, 2020.
The increase results primarily from a combination of changes including higher insurance fees resulting from the Company's listing
on the Nasdaq Capital Market and higher legal fees, personnel expenses and investor relation expenses.
At September 30, 2021, the Company's cash, cash equivalents
and short-term investments were $15.4 million, which compares to $7.4 million at June 30, 2021. The increase in cash, cash equivalents
and short-term investments during the three months to September 30, 2021, was primarily the result of the July 2, 2021 private placement
partially offset by cash outflows from operating activities.
At September 30, 2021, the Company's total
issued and outstanding shares were 10,327,034, or 14,137,034 including all outstanding pre-funded warrants which are considered common
share equivalents. During the three months ending September 30, 2021, including the pre-funded warrants, the weighted average number
of common shares was 12,047,555, which is used for the calculation of loss per share for the interim periods.
Table 1: Condensed Consolidated Interim Balance
| InMed Pharmaceuticals Inc. | ||||||||
| CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (unaudited) | ||||||||
| As at September 30, 2021 and June 30, 2021 | ||||||||
| Expressed in U.S. Dollars | ||||||||
| September 30, | June 30, | |||||||
| 2021 | 2021 | |||||||
| ASSETS | $ | $ | ||||||
| Current | ||||||||
| Cash and cash equivalents | 15,343,905 | 7,363,126 | ||||||
| Short-term investments | 45,224 | 46,462 | ||||||
| Accounts receivable | 14,842 | 11,919 | ||||||
| Loan receivable | 250,000 | - | ||||||
| Prepaids and other assets | 322,352 | 956,762 | ||||||
| Total current assets | 15,976,323 | 8,378,269 | ||||||
| Non-Current | ||||||||
| Property and equipment, net | 304,934 | 326,595 | ||||||
| Intangible assets, net | 1,037,382 | 1,061,697 | ||||||
| Other assets | 8,625 | 14,655 | ||||||
| Total Assets | 17,327,264 | 9,781,216 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current | ||||||||
| Accounts payables and accrued liabilities | 1,844,769 | 2,134,878 | ||||||
| Current portion of lease obligations | 82,232 | 80,483 | ||||||
| Total current liabilities | 1,927,001 | 2,215,361 | ||||||
| Non-current | ||||||||
| Lease obligations | 178,591 | 189,288 | ||||||
| Total Liabilities | 2,105,592 | 2,404,649 | ||||||
| Shareholders' Equity | ||||||||
| Common shares, no par value, unlimited authorized shares: | ||||||||
| 10,327,034 (June 30, 2021 - 8,050,707) issued and outstanding | 63,686,724 | 60,587,417 | ||||||
| Additional paid-in capital | 29,230,464 | 21,513,051 | ||||||
| Accumulated deficit | (77,824,085 | ) | (74,852,470 | ) | ||||
| Accumulated other comprehensive income | 128,569 | 128,569 | ||||||
| Total Shareholders' Equity | 15,221,672 | 7,376,567 | ||||||
| Total Liabilities and Shareholders' Equity | 17,327,264 | 9,781,216 |
Table 2: Condensed Consolidated Interim Statements
of Operations and Comprehensive Loss (unaudited):
| InMed Pharmaceuticals Inc. | ||||||||
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) | ||||||||
| For the three months ended September 30, 2021 and 2020 | ||||||||
| Expressed in U.S. Dollars | ||||||||
| Three Months Ended | ||||||||
| September 30 | ||||||||
| 2021 | 2020 | |||||||
| $ | $ | |||||||
| Operating Expenses | ||||||||
| Research and development and patents | 1,491,252 | 911,156 | ||||||
| General and administrative | 1,372,867 | 624,788 | ||||||
| Amortization and depreciation | 28,532 | 27,981 | ||||||
| Total operating expenses | 2,892,651 | 1,563,925 | ||||||
| Other Income (Expense) | ||||||||
| Interest income | 5,148 | 4,345 | ||||||
| Foreign exchange loss | (84,112 | ) | (39,499 | ) | ||||
| Net loss for the period | (2,971,615 | ) | (1,599,079 | ) | ||||
| Other Comprehensive Loss | ||||||||
| Foreign currency translation gain | - | 129,400 | ||||||
| Total comprehensive loss for the period | (2,971,615 | ) | (1,469,679 | ) | ||||
| Net loss per share for the period | ||||||||
| Basic and diluted | (0.25 | ) | (0.31 | ) | ||||
| Weighted average outstanding common shares | ||||||||
| Basic and diluted | 12,047,555 | 5,220,707 |