InMed Pharmaceuticals Provides Update on its Core Research and Development Programs and BayMedica Business
September 08 2022 - 2:08PM
InMed Pharmaceuticals Inc. (“InMed” or the
“Company”) (Nasdaq: INM), a leader in the research, development and
manufacturing of rare cannabinoids and cannabinoid analogs, today
announces an update on its research/development and commercial
activities.
Eric A. Adams, InMed CEO, states, “The Company
continues to execute on its research and development (“R&D”)
plans to complete enrollment in a Phase 2 clinical program in
epidermolysis bullosa (“EB”) by calendar year end, to continue to
advance a preclinical drug candidate in ocular disease and to
investigate the utility of proprietary cannabinoid analogs in
targeting specific diseases. We remain enthusiastic with the
potential of the proprietary cannabinoid analog program that
resulted in part from our acquisition of BayMedica, LLC
(“BayMedica”) in October 2021. However, despite the significant
efforts by the commercial team at BayMedica, the market demand for
the BayMedica naturally-occurring cannabinoids in the Health &
Wellness (“H&W”) sector is not progressing as
anticipated.”
Contributing factors include but are not limited
to: recent overarching recessionary pressures leading to hesitation
within the H&W sector to invest in, and launch, new rare
cannabinoid products; in this nascent market, BayMedica’s
competitive advantages of certified high purity and reliability and
consistency of supply not resonating with the industry product
manufacturers; and, additional downward pricing pressure for
cannabinoids in the H&W sector.
Mr. Adams continued, “Given the above, the
timing of revenues for the BayMedica products has become highly
uncertain and is causing us to re-evaluate whether, in the
long-term, the BayMedica commercial activities will achieve margins
sufficient to justify further investment in that business line. Our
goal is to invest where we see the greatest potential for a return
and, in doing so, we must take into account evolving market
dynamics. As a result, we have made the decision to focus on our
core business in the pharmaceutical drug development area and
reduce our financial exposure in the H&W sector. To make that
transition, we plan to focus sales efforts on reducing inventory
and decreasing other commercial and manufacturing R&D efforts.
BayMedica will continue to evaluate opportunities for potential
structured supply arrangements and collaborations and will consider
other potential strategic alternatives for the commercial
business.”
Due to the sector-wide underperformance and the
uncertainty around the revenues in the H&W market, the Company
expects to report a non-cash impairment* charge of its long-lived
assets from the BayMedica acquisition during the quarter ended June
30, 2022. The amount of the impairment charge for acquired
in-process R&D costs, trademarks and goodwill is estimated to
be approximately $3.5 million. This figure may differ once we
complete our fiscal year end audit procedures. We continue to
evaluate other long-lived assets from the BayMedica acquisition for
impairment. InMed is due to file its Annual Report on Form 10-K for
the Year Ended June 30, 2022 no later than September 28, 2022.
The Company continues to advance discovery work
for the potential use of a rare cannabinoid and their analogs to
improve neuronal function and provide neuroprotection for treating
neurodegenerative disorders such as Alzheimer’s disease,
Parkinson’s disease and Huntington’s disease. To date, screening
for this disease category has narrowed the list of potential analog
target candidates and we will continue to proceed with our plan to
find an appropriate compound for further preclinical
development.
Mr. Adams concluded, “This research further
reflects our efforts in the fields of dermatology and ocular
disease to identify and develop cannabinoids that have significant
therapeutic potential in treating disease. We look forward to
continuing the progress we have made in advancing our
pharmaceutical drug development programs, including proprietary
cannabinoid analogs, with the aim of achieving important milestones
in the coming quarters and years.”
* Under US Generally Accepted Accounting Practices (GAAP), an
impairment is a permanent reduction in the book value of a company
asset. This is a bookkeeping entry and does not impact cash
resources.
About InMed: InMed
Pharmaceuticals is a global leader in the research, development and
manufacturing of rare cannabinoids, including clinical and
preclinical programs targeting the treatment of diseases with high
unmet medical needs. We also have significant know-how in
developing proprietary manufacturing approaches to produce
cannabinoids for various market sectors. For more information,
visit www.inmedpharma.com and www.baymedica.com.
Investor Contact: Colin ClancyVice President,
Investor RelationsT: +1.604.416.0999E: cclancy@inmedpharma.com
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: the size of our non-cash impairment
charge, being on track to hit our milestones for the pharmaceutical
drug development programs, reducing our financial exposure in the
H&W sector, investing where the Company sees the greatest
potential for a return, the continued pursuit of discussions for
structured supply agreements, commercial collaborations and
strategic alternatives for the commercial business, continued
efforts in the fields of dermatology and ocular disease to identify
and develop cannabinoids that have significant therapeutic
potential in treating disease, the continued focus of resources
towards advancing our pharmaceutical drug development programs,
including proprietary cannabinoid analogs, the generation of
proprietary cannabinoid analogs to support pharmaceutical drug
development continuing at BayMedica and these analogs continuing to
be a high priority for our future drug development programs.
With respect to the forward-looking information
contained in this news release, InMed has made numerous
assumptions. While InMed considers these assumptions to be
reasonable, these assumptions are inherently subject to significant
business, economic, competitive, market and social uncertainties
and contingencies. 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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