InMed Pharmaceuticals, Inc.

Cannabinoids as Medicines

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Volume | Market Cap | Shares | PEG Ratio | EPS

Fundamentals.

IMLFF (OTC)

Recommendation: See Below

Profile:
HQ: Vancouver, BC, Canada
Founded: 1981
Facilities: Vancouver, BC, Canada
Symbol: IMLFF (OTC), IN (TSE)

Focus: Strong
InMed, a clinical stage biopharmaceutical company, is focused on the therapeutic application of rare cannabinoids which are helpful in the treatment of diseases with unmet medical needs. InMed is in the process of developing biosynthetic manufacturing that targets the production of rare cannabinoids that are very much identical to those produced biologically by the plant. The company’s lead product is INM-750, a topical cannabinoid product candidate to treat epidermolysis bullosa. The company is also involved in developing INM-085, a cannabinoid-based topical therapy for glaucoma; and INM-405 for the treatment of orofacial pain. In addition, it engages in the development of drugs for the treatment of various diseases, including dermatology, ocular, pain, inflammation, cancer, and other disease areas.

Size: Neutral
Market Cap: US $33.17 mil
Enterprise value: $25.61 mil
# of employees: 20

Markets: Strong
Primary:  Canada
Secondary:   USA
Subsidiaries:
Majority: SDM Enterprises, Savicon, Time Search, Biogen Sciences, Sweetnam Consulting, Thinapse Systems, AssistGlobal, The Praxium Group.
Minority interests: None

Operations: Weak
Cultivation:
Present capacity: None
Future capacity: Developing biosynthetic manufacturing approaches in E-coli

Distribution:
Direct sales: None
Store networks: None
Supply Agreements: In clinical trial process so there is no supply agreement yet

Integration/Diversification:
Vertically integrated: No
Horizontally diversified: No

Financials:  Weak
Outstanding shares (diluted): 171.34 mil
Revenue last year: $0  mil
EPS: ($0.08)

Management: Strong
CEO: Eric A. Adams
CFO: Bruce S. Colwill

Eric A. Adams, has more than 25 years of experience in the biopharmaceutical industry, and has reconstituted the Executive management team of InMed while raising more than $35M in capital to fund operations. Bruce S. Colwill, CFO of InMed, also has greater than 25 years of experience at pharmaceutical companies in financial leadership capacities.

Branding: Neutral
InMed Pharmaceuticals is positioning itself as a company with a focus on research and development of cannabinoid based treatments for rare diseases. InMed is in the process of launching three pipeline products for the treatment of glaucoma, orofacial pain, and epidermolysis bullosa with a total market potential of of $10 billion.

Valuation: Weak
Current share price: US $0.20
Price to Book: 2.79
52 Week Low/High: $0.165 to $0.63
Enterprise Value: -2.49

Financings: Strong
In June, InMed Pharmaceuticals closed the ‘bought deal’ financing by issuing 16,611,244 units (the “Units”) at a price per Unit of C$0.90 raising C$14.95 million. InMed aims to use these funding for development of INM-750 for the treatment of Epidermolysis Bullosa and their manufacturing technology.

Risks: Neutral
The risks of investing in any cannabis company are currently high given the newness of the market. The risks of investing in this company are medium given the hit or miss nature of biopharmaceutical companies.

Recommendation: Strong
InMed, a clinical stage biopharmaceutical company, is focused on the therapeutic application of rare cannabinoids which are helpful in the treatment of rare diseases.. InMed is in the process of developing biosynthetic manufacturing approaches that target the production of rare cannabinoids that are very much identical to those produced biologically by the plant.

InMed is launching three pipeline products for the treatment of glaucoma, orofacial pain and epidermolysis bullosa with a total market potential of of $10 billion.

InMed has a good chance to be a profitable company as it closed the ‘bought deal’ financing by issuing 16,611,244 units (the “Units”) at a price per Unit of C$0.90 raising C$14.95 million. InMed aims to use these funding for development of INM-750 for the treatment of Epidermolysis Bullosa and biosynthesis manufacturing technology.

Will its stock price improve in the long term? Likely

By March 31, 2019, InMed cash, cash equivalents and short-term investments were $20.4 million which is enough to finance operations in 2019 as they are in last stages of testing first product for treatment of Epidermolysis Bullosa.

InMed has already selected a contract manufacturing organization (CMO) to produce the drug for it’s initial clinical testing which strengthened confidence in the trial timeline. Results are expected to be released in first half of 2020 as enrollment is expected to occur quickly.

According to research firm GlobalData, glaucoma treatment market is expected to exceed $3 billion by 2023 so InMed’s IN-085 could prove to be a game-changer.

For these reasons, we think InMed, at or near its current price of $0.20 a share, can be good investment opportunity—though as earnings increase with sales and expenses reduced then an opportunity can appear.

Recommendation: Strong

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