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InMed Pharmaceuticals Inc. (NASDAQ: INM) ("InMed" or the "Company"), a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates for diseases with high unmet medical needs, today reports financial results for the third quarter of the fiscal year 2026 which ended March 31, 2026.
The Company's full financial statements and related MD&A for the third quarter ended March 31, 2026, are available at www.inmedpharma.com, www.sedarplus.com and at www.sec.gov.
"During the quarter, InMed reported additional preclinical data that further support the development of INM-901 for Alzheimer's disease through its targeting of neuroinflammation. Data from advanced human brain organoid systems demonstrated anti-neuroinflammatory effects consistent with findings observed across multiple in vivo and ex vivo studies," commented Eric A. Adams, InMed President and CEO.
Business Update
INM-901: Targeting the Modulation of Neuroinflammation in Alzheimer's disease
InMed's proprietary, disease-modifying, small molecule drug candidate INM-901 is a preferential signaling agonist of the CB1/CB2 receptors and continues to advance as a potential treatment for Alzheimer's disease with a primary focus on modulating neuroinflammation. During the quarter, InMed announced preclinical data demonstrating the effects of INM-901 in reducing neuroinflammation in 3D human brain organoid models of Alzheimer's disease.
The in vitro human organoid models represent some of the closest approximations to human brain tissue currently available, incorporating a complex cellular environment relevant to neurodegenerative disease. The organoids are composed of neurons, astrocytes, vascular cells and feature microglia, the brain's resident immune cells, and can be used to bridge the gap between traditional animal models and human clinical trials.
INM-901 was evaluated in two distinct human 3D organoid models: a general model of neuroinflammation induced with lipopolysaccharide ("LPS") and interferon-gamma ("IFN-γ"); and, Stem Pharm's proprietary neuroinflammation Alzheimer's disease model with specific features observed in Alzheimer's disease patients.
Key Observations included:
INM-901 demonstrated significant reduction in neuroinflammation in Stem Pharm's LPS-induced model and in their Alzheimer's disease model. A dose-dependent reduction of key pro-inflammatory markers such as IL-6 and IL-8 was seen in both neuroinflammation models.
Effects align with prior findings from an in vivo Alzheimer's model and an ex vivo LPS-induced neuroinflammation model.
Provides supportive evidence of mechanistic translation from animal models to human tissue systems.
The consistency of INM-901's anti-inflammatory effects across in vivo animal models, ex vivo systems and now human 3D brain organoids provide increasing confidence in the compound's potential to translate into clinical benefit in humans with neuroinflammatory conditions.
Discontinued Operations
On March 4, 2026, the Company's board of directors ratified, confirmed and approved the decision of the board members of BayMedica to wind down and exit BayMedica's commercial operations business segment ("Commercial Operations"), which is the only revenue-generating commercial operations of the Company. BayMedica intends to substantially complete the wind down and exit prior to the end of its fiscal year ending June 30, 2026. During the interim period leading to the completion of operational wind down, BayMedica will continue its commercial operations including sales, marketing, limited manufacturing, and logistics.
Financial Commentary
Following the classification of the Commercial segment as discontinued operations, the Company has one reportable segment that constitutes consolidated results consisting of its operations. Unless otherwise noted, all activities and amounts reported in the following notes relate to the continuing operations of the Company and exclude activities and amounts related to discontinued operations.
For the three months ended March 31, 2026, the Company reported a net loss of $3.0 million, compared to a net loss of $2.1 million in the same period the previous year. The increase was largely driven by higher expenses related to pharmaceutical research and development activities, as well as financing costs.
Pharmaceutical research and development for continuing operations were $1.0 million for the three months ended March 31, 2026, compared with $0.4 million for the three months ended March 31, 2025. The increase was primarily due to an increase in external contractors relating to our INM-901 program
General and administrative expenses for continuing operations were $1.7 million for the three months ended March 31, 2026, compared to $1.6 million the same period the previous year. The increase resulted primarily from a combination of changes including lower accounting fees, share-based payments fees, and shareholder communication fees.
As of March 31, 2026, the Company's cash, cash equivalents and short-term investments were $5.2 million, which compares to $10.8 million on June 30, 2025.
The Company reported no revenue from continuing operations for the period. The discontinued commercial operations generated revenue of $0.7 million during the period; however, its results are classified as discontinued operations and are presented separately from continuing operations.
Table 1. Consolidated Balance Sheet
Expressed in U.S. Dollars
| March 31, | June 30, | ||||||
| 2026 | 2025 | ||||||
| Unaudited | (As restated) | ||||||
| $ | $ | ||||||
| ASSETS | |||||||
| Current | |||||||
| Cash and cash equivalents | 5,158,932 | 10,743,430 | |||||
| Short-term investments | 41,625 | 43,384 | |||||
| Prepaids and other current assets | 617,211 | 319,547 | |||||
| Current assets of discontinued operations | 1,070,313 | 1,760,918 | |||||
| Total current assets | 6,888,081 | 12,867,279 | |||||
| Non-Current | |||||||
| Property, equipment and ROU assets, net | 642,884 | 992,199 | |||||
| Intangible assets, net | 1,498,473 | 1,620,562 | |||||
| Other assets | 104,368 | 100,000 | |||||
| Total Assets | 9,133,806 | 15,580,040 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current | |||||||
| Accounts payable and accrued liabilities | 1,011,551 | 1,230,845 | |||||
| Current portion of lease obligations | 389,381 | 435,507 | |||||
| Current liabilities of discontinued operations | 810,334 | 173,438 | |||||
| Total current liabilities | 2,211,266 | 1,839,790 | |||||
| Non-current | |||||||
| Lease obligations, net of current portion | 30,766 | 305,755 | |||||
| Total Liabilities | 2,242,032 | 2,145,545 | |||||
| Commitments and Contingencies (Note 9) | |||||||
| Shareholders' Equity | |||||||
| Common shares, no par value, unlimited authorized shares: 3,314,063 and 2,002,186 as of March 31, 2026 and June 30, 2025, respectively, issued and outstanding | 92,578,071 | 91,221,174 | |||||
| Additional paid-in capital | 38,144,484 | 39,322,644 | |||||
| Accumulated deficit | (123,959,350 | ) | (117,237,892 | ) | |||
| Accumulated other comprehensive income | 128,569 | 128,569 | |||||
| Total Shareholders' Equity | 6,891,774 | 13,434,495 | |||||
| Total Liabilities and Shareholders' Equity | 9,133,806 | 15,580,040 | |||||
Table 2. Consolidated Statements of Operations
Expressed in U.S. Dollars
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
| March 31, | March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| $ | $ | $ | $ | ||||||||||||
| Operating Expenses | |||||||||||||||
| Research and development | 1,022,630 | 425,370 | 2,222,732 | 2,243,948 | |||||||||||
| General and administrative | 1,742,016 | 1,584,393 | 4,304,323 | 4,155,493 | |||||||||||
| Amortization and depreciation | 51,707 | 51,706 | 156,912 | 158,289 | |||||||||||
| Foreign exchange loss | 23,168 | 22,165 | 62,026 | 50,608 | |||||||||||
| Total operating expenses | 2,839,521 | 2,083,634 | 6,745,993 | 6,608,338 | |||||||||||
| Other Income (Expense) | |||||||||||||||
| Interest and other income | 47,770 | 16,565 | 215,914 | 104,195 | |||||||||||
| Finance expense | - | - | - | (351,549 | ) | ||||||||||
| Net loss from continuing operations before taxes | (2,791,751 | ) | (2,067,069 | ) | (6,530,079 | ) | (6,855,692 | ) | |||||||
| Income tax expense | - | - | - | - | |||||||||||
| Net loss from continuing operations | (2,791,751 | ) | (2,067,069 | ) | (6,530,079 | ) | (6,855,692 | ) | |||||||
| Discontinued operations: | |||||||||||||||
| Income (Loss) from discontinued operations | (174,585 | ) | (53,861 | ) | (191,379 | ) | 481,870 | ||||||||
| Income tax benefit | - | - | - | - | |||||||||||
| Loss from discontinued operations | (174,585 | ) | (53,861 | ) | (191,379 | ) | 481,870 | ||||||||
| Net Loss | (2,966,336 | ) | (2,120,930 | ) | (6,721,458 | ) | (6,373,822 | ) | |||||||
| Net loss per share for the period | |||||||||||||||
| Basic and diluted: | |||||||||||||||
| Continuing operations | (0.69 | ) | (1.89 | ) | (1.64 | ) | (8.53 | ) | |||||||
| Discontinued Operations | (0.04 | ) | (0.05 | ) | (0.05 | ) | 0.6 | ||||||||
| Net loss per share attributable to Common Stockholders – basic and diluted | (0.73 | ) | (1.94 | ) | (1.69 | ) | (7.93 | ) | |||||||
| Weighted average outstanding common shares | |||||||||||||||
| Basic and diluted | 4,048,209 | 1,095,973 | 3,985,313 | 803,909 | |||||||||||
Table 3. Consolidated Statements of Cash Flows
Expressed in U.S. Dollars
| For the Nine Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| $ | $ | ||||||
| Cash provided by (used in): | |||||||
| Operating Activities | |||||||
| Net loss | (6,721,458 | ) | (6,373,822 | ) | |||
| Items not requiring cash: | |||||||
| Amortization and depreciation | 156,912 | 160,087 | |||||
| Share-based compensation | 84,240 | 92,577 | |||||
| Amortization of right-of-use assets | 291,245 | 243,555 | |||||
| Unrealized foreign exchange loss | 27,730 | 44,876 | |||||
| Changes in operating assets and liabilities: | |||||||
| Prepaids and other currents assets | (294,825 | ) | (61,581 | ) | |||
| Other non-current assets | (4,368 | ) | - | ||||
| Accounts payable and accrued liabilities | (218,577 | ) | (349,399 | ) | |||
| Lease obligations | (327,395 | ) | (315,221 | ) | |||
| Operating cash flow used by discontinued operations | 1,327,501 | 570,483 | |||||
| Total cash used in operating activities | (5,678,995 | ) | (5,988,445 | ) | |||
| Investing Activities | |||||||
| Sale of short-term investments | 41,667 | 40,039 | |||||
| Purchase of short-term investments | (41,667 | ) | (40,039 | ) | |||
| Total cash used in investing activities | - | - | |||||
| Financing Activities | |||||||
| Proceeds from the private placement | 231,675 | 4,361,220 | |||||
| Share issuance costs | (137,178 | ) | (264,559 | ) | |||
| Total cash provided by financing activities | 94,497 | 4,096,661 | |||||
| Decrease in cash and cash equivalents during the period | (5,584,498 | ) | (1,891,784 | ) | |||
| Cash and cash equivalents beginning of the period | 10,743,430 | 6,571,610 | |||||
| Cash and cash equivalents end of the period | 5,158,932 | 4,679,826 | |||||
| SUPPLEMENTARY CASH FLOW INFORMATION: | |||||||
| Cash paid during the period for: | - | - | |||||
| Income taxes | $ | - | $ | - | |||
| Interest | $ | - | $ | - | |||
| SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||
| Recognition of Right-of-use asset and corresponding operating lease | $ | - | $ | 187,223 | |||
About InMed
InMed Pharmaceuticals is a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates targeting the CB1/CB2 receptors. InMed's pipeline consists of three separate programs in the treatment of Alzheimer's, ocular and dermatological indications. For more information, visit www.inmedpharma.com.
Investor Contact:
Colin Clancy
Vice President, Investor Relations
and Corporate Communications
T: +1.604.416.0999
E: ir@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. Without limiting the foregoing, forward-looking information in this news release includes, but is not limited to, statements about; the potential efficacy of INM-901, INM-901's ability to treat Alzheimer's, marketability and uses for INM-901; preclinical data demonstrating the effects of INM-901 in reducing neuroinflammation in 3D human brain organoid models of Alzheimer's disease. demonstrated significant reduction in neuroinflammation in Stem Pharm's LPS-induced model and in their Alzheimer's disease model.
With respect to the forward-looking information contained in this news release, InMed has made numerous assumptions regarding, among other things: the ability to obtain all necessary regulatory approvals on a timely basis, or at all; and continued economic and market stability. 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, InMed's Quarterly Report on Form 10-Q and other filings with the Security 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/296317
