InMed Q2 2024 Earnings: BayMedica Drives Growth

The TDR Three Key Takeaways:

1. InMed Pharmaceuticals Inc. saw notable revenue growth in its BayMedica subsidiary, reflecting effective operational strategies and an expanding product pipeline.
2. InMed is progressing in developing treatments for Alzheimer’s and Age-Related Macular Degeneration, emphasizing its commitment to innovative solutions for critical medical needs.
3. Despite increased revenues, InMed continues to report net losses and requires additional financing for operations, underscoring the need for enhanced operational profitability.

InMed Pharmaceuticals Inc. (NASDAQ: INM) has disclosed its financial outcomes for the second fiscal quarter of 2024, which concluded on December 31, 2023. The report highlights a significant period for the company, marked by a 164% revenue growth in its commercial BayMedica subsidiary and the closing of the calendar year 2023 with a cash position of $9.5 million. This growth is indicative of the company’s operational strategies and its focus on expanding its pharmaceutical pipeline. InMed has introduced two new preclinical programs aimed at addressing Alzheimer’s disease and Age-Related Macular Degeneration, underlining its commitment to leveraging proprietary small molecule drug development in areas of high unmet medical need.

The company’s foray into the development of INM-901 for Alzheimer’s and INM-089 for Age-Related Macular Degeneration underscores its focus on innovative treatments. Early research on INM-901 shows potential in several biological pathways associated with Alzheimer’s, indicating a multifaceted approach to tackling the disease. Similarly, INM-089’s promising preclinical research in preserving retinal function points towards InMed’s strategic direction in addressing complex health issues.

Financially, InMed reported a net loss of $4.0 million for the six months ended December 31, 2023, a reduction from a net loss of $5.6 million for the same period in the previous year. The company’s research and development expenses saw a decrease, primarily due to the completion of the INM-755 Phase 2 clinical trial, offset by an increase in external contractor fees and personnel expenses within the BayMedica segment. Furthermore, general and administrative expenses decreased as well, contributing to the company’s financial adjustments.

The BayMedica commercial subsidiary showcased remarkable growth with $1.2 million in revenues for the three months ended December 31, 2023. This growth reflects an optimistic outlook for the rare cannabinoids sector, despite expectations of revenue fluctuations in future quarters. The company’s strategic financing activities, including a Private Placement and Preferred Investment Option Exercise, brought in gross proceeds of $5.2 million, bolstering its financial position.

My Take as an Analyst

From an analytical perspective, InMed Pharmaceuticals Inc. demonstrates promising growth potential, particularly with its BayMedica subsidiary’s significant revenue increase and the strategic expansion of its pharmaceutical development programs. The advancement into treatments for Alzheimer’s and Age-Related Macular Degeneration positions the company in high-impact areas of medical research. However, the continued net loss and the necessity for further financing to sustain operations highlight areas for improvement. Specifically, InMed must focus on advancing its clinical trials to stages where they can potentially generate returns on investment. The reliance on financing activities for liquidity underscores the importance of achieving operational profitability and reducing dependency on external funding.

We will keep our readers up to date on any progress the company makes going forward. Want to keep up to date with all of TDR’s research, subscribe to our daily Baked In newsletter. Missed yesterday’s TLDR TDR update, check it out here.