Full Press Release Details
InMed Pharmaceuticals Reports Third Quarter
Fiscal 2023 Financial Results and Provides Business Update
Vancouver, BC - May 15, 2023 - InMed
Pharmaceuticals Inc. ("InMed" or the "Company") (Nasdaq: INM), a leader in the pharmaceutical
research, development, manufacturing and commercialization of rare cannabinoids and cannabinoid analogs, today announced financial results
for the third quarter of the fiscal year 2023 ("FY 3Q23") which ended March 31, 2023.
The Company's full financial statements
and related MD&A for the third quarter ended March 31, 2023, are available at www.inmedpharma.com, www.sedar.com and at www.sec.gov.
"The third quarter of fiscal year 2023 was
an important period for InMed, as we achieved several key milestones across our different business segments, including completing enrollment
in our Phase 2 clinical trial for epidermolysis bullosa, marking the first time cannabinol ("CBN") has completed a Phase 2
clinical trial. We look forward to the data read out during 3Q and will then be in a better position to evaluate our strategic opportunities
for the program." said Eric A. Adams, President and CEO of InMed. "We are increasingly excited about the data we are seeing
in our preclinical ocular and neurodegenerative disease programs where we are researching proprietary cannabinoid analogs in the treatment
of various indications."
"We also hit another significant milestone
in our commercial BayMedica subsidiary, surpassing $1M in quarterly revenues for the first time from the sales of rare cannabinoids to
the Health and Wellness ("H&W") sector, representing a 120% increase over 2Q sales." Adams continued, "In
the last few months we have seen a noticeable increase in awareness, understanding and adoption of rare cannabinoids in the H&W sector,
evidenced by leading companies expanding their product lines to include new formats and formulations using rare cannabinoids such as the
non-psychoactive ingredient cannabichromene ("CBC"). We are encouraged by two consecutive periods of significant quarter over
quarter revenue growth. We will continue to support growth in a fiscally prudent manner in this relatively nascent market, where product
demand can be unpredictable. The combination of a pharmaceutical drug development pipeline, together with a revenue generating commercial
operation that will be contributing to extending our cash runway makes InMed a unique company within the rare cannabinoid space."
Pharmaceutical Development Programs
INM-755 - Phase 2 Clinical Trial in EB
In March 2023, the Company concluded enrollment
of 19 patients in its Phase 2 clinical trial, with the last patient completing treatment in April, using the investigational drug INM-755
CBN cream for the treatment of symptoms in persons with epidermolysis bullosa ("EB"), a rare genetic skin disease. The study
used a within-patient, double-blind design in which matched index areas were randomized to INM-755 (cannabinol) cream or vehicle cream
as a control. Selected matched index areas may have been wounds or non-wound areas. In this study, designed to measure safety and obtain
preliminary evidence of efficacy, there is no single primary efficacy endpoint. Net benefit from INM-755 cream will be evaluated within
each patient and based on their clinical needs at baseline. Based on their presenting symptoms, the majority of the enrolled and treated
patients in the 755-201-EB study were treated for non-wound itch.
INM-088 - Glaucoma Program
The Company continues to conduct IND-enabling
preclinical testing for the development of a CBN-based eye drop formulation in glaucoma and has planned GLP toxicology studies in Q4 2023.
As part of the Company's proprietary cannabinoid
analog program, InMed continues to screen a library of new compounds across a spectrum of therapeutic applications, including other ocular
indications such as Age-related Macular Degeneration ("AMD") and other similar back-of-the-eye' diseases.
INM-900 - Neurodegenerative Diseases Program
Two cannabinoid analogs are being assessed in in
vivo models of neurodegenerative diseases and the Company expects these studies to be completed and a candidate selected for
further development in calendar 2Q 2023. Our research demonstrated the neuroprotective effects of specific cannabinoid analogs and their
potential to improve neuronal function in in vitro testing.
InMed recently filed a patent application covering
a range of cannabinoids demonstrating neuroprotection and enhanced neuronal function for the potential treatment of neurodegenerative
diseases such as Alzheimer's Disease, Parkinson's Disease, Huntington's Disease and others.
March 2023, the Company announced the publication of a peer-reviewed scientific study entitled "Rare phytocannabinoids exert
anti-inflammatory effects on human keratinocytes via the endocannabinoid system and MAPK signaling pathway" in the International
Journal of Molecular Sciences. The study, conducted in collaboration with Dr. Mauro Maccarrone at the Universit degli
Studi dell'Aquila, Italy, investigates the dermatological anti-inflammatory effects of certain rare cannabinoids. It is the second
Company-sponsored study to demonstrate the anti-inflammatory effects of rare cannabinoids and their potential for the treatment of skin
conditions such as atopic dermatitis, psoriasis, pruritus, and acne.
BayMedica Commercial Business
InMed's BayMedica rare cannabinoids business,
which serves the H&W sector, delivered its strongest revenue quarter since acquisition in late 2021. As a result of slower than anticipated
product demand throughout 2022, in 2023, management took a conservative approach towards investment in inventory and new products while
the sales and marketing function sought to develop commercial opportunities.
This approach has proven beneficial as, thus far
in 2023, the H&W sector has experienced a significant increase in demand for rare cannabinoids, particularly CBC, where BayMedica
has been well-positioned to be a key supplier to distributors and manufacturers. During the nine months ended March 31, 2023, revenues
totaled more than $1.8 million, as sales surpassed $1 million in the third quarter alone, compared to $0.6 million for the nine months
ended March 31, 2022.
While the medium- and long-term outlooks remain
uncertain, sales and marketing efforts remain focused on products that have stable pricing, lower manufacturing costs, and where BayMedica
holds a strong competitive position.
Financial and Operational Highlights:
For the nine months ended March 31, 2023, the
Company recorded a net loss of $7.6 million, or $3.53 per share, compared with a net loss of $10.7 million, or $20.13 per share, for the
nine months ended March 31, 2022.
Research and development and patents expenses
decreased by $2.7 million for the nine months ended March 31, 2023 compared to the same period in 2022. The decrease was due to a combination
of lower personnel expenses and high start-up costs associated with the multicenter Phase 2 clinical trial in our INM-755 program during
The Company incurred general and administrative
expenses of $4.4 million for the nine months ended March 31, 2023 compared with $5.1 million for the nine months ended March 31, 2022.
The decrease results primarily from a combination of changes including lower personnel expenses, insurance fees, investor relation expenses,
accounting fees, legal fees and were offset by the inclusion of BayMedica operating results following its acquisition on October 13, 2021.
At March 31, 2023, the Company's cash, cash
equivalents and short-term investments were $9.6 million, which compares to $6.2 million at June 30, 2022. The increase in cash, cash
equivalents and short-term investments during the nine months ended March 31, 2023, was primarily the result of both the September 13,
2022 and November 21, 2022 private placements partially offset by cash outflows from operating activities. With ongoing revenue from the
BayMedica operations and depending on how we prioritize investment into our various development activities, InMed has a projected cash
runway to the middle of fiscal 3Q 2024.
At March 31, 2023, the Company's total
issued and outstanding shares were 3,328,191. During the three and nine months ending March 31, 2023, the weighted average number
of common shares was 3,328,191 and 2,156,283, which is used for the calculation of loss per share for the respective interim periods.
For the nine months ending March 31, 2023, InMed's
BayMedica subsidiary delivered $1.8 million in rare cannabinoid ingredient sales to distributors and manufacturers in the H&W sector,
compared to $0.6 million in 2022, reflecting expanded marketing efforts and increased market demand. Gross profit margin was adversely
affected by downward pricing pressure on certain products in the portfolio and a write-down of selected inventories to net realizable
value of $0.6 million in the first quarter of 2023. We expect our overall gross profit and gross profit margins will improve over the
coming quarters as sales and marketing efforts are focused on products with more stable pricing and lower manufacturing costs.
Table 1: Condensed Consolidated Interim Balance
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
As of March 31, 2023 (unaudited) and June 30, 2022
Expressed in U.S. Dollars
| March 31, | June 30, | |||||||
| 2023 | 2022 | |||||||
| $ | $ | |||||||
| ASSETS | ||||||||
| Current | ||||||||
| Cash and cash equivalents | 9,604,057 | 6,176,866 | ||||||
| Short-term investments | 43,055 | 44,804 | ||||||
| Accounts receivable, net | 170,299 | 88,027 | ||||||
| Inventories | 1,329,931 | 2,490,854 | ||||||
| Prepaids and other current assets | 695,203 | 797,225 | ||||||
| Total current assets | 11,842,545 | 9,597,776 | ||||||
| Non-Current | ||||||||
| Property, equipment and ROU assets, net | 753,241 | 904,252 | ||||||
| Intangible assets, net | 1,986,826 | 2,108,915 | ||||||
| Other assets | 147,489 | 176,637 | ||||||
| Total Assets | 14,730,101 | 12,787,580 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current | ||||||||
| Accounts payable and accrued liabilities | 1,829,924 | 2,415,265 | ||||||
| Current portion of lease obligations | 423,574 | 404,276 | ||||||
| Deferred rent | 16,171 | - | ||||||
| Acquisition consideration payable | - | 500,000 | ||||||
| Total current liabilities | 2,269,669 | 3,319,541 | ||||||
| Non-current | ||||||||
| Lease obligations, net of current portion | 72,794 | 389,498 | ||||||
| Total Liabilities | 2,342,463 | 3,709,039 | ||||||
| Commitments and Contingencies (Note 14) | ||||||||
| Shareholders' Equity | ||||||||
| Common shares, no par value, unlimited authorized shares: 3,328,191 (June 30, 2022 - 650,667) issued and outstanding | 77,620,252 | 70,718,461 | ||||||
| Additional paid-in capital | 35,700,635 | 31,684,098 | ||||||
| Accumulated deficit | (101,061,818 | ) | (93,452,587 | ) | ||||
| Accumulated other comprehensive income | 128,569 | 128,569 | ||||||
| Total Shareholders' Equity | 12,387,638 | 9,078,541 | ||||||
| Total Liabilities and Shareholders' Equity | 14,730,101 | 12,787,580 | ||||||
| Related Party Transactions (Note 16) |
Table 2: Condensed Consolidated Interim Statements
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (unaudited)