InMed Pharmaceuticals Inc.

For the year ended June 30, 2022, InMed reported a net loss of $18.6 million, or $33.17 per share, versus a net loss of $10.2 million, or $37.96 per share, in the prior year. R&D and patent expenses were approximately $7.3 million versus $5.3 million last year, and G&A expenses were $6.9 million, up 54% year over year. BayMedica generated $1.1 million of sales for the year, and the company recorded a $3.5 million non-cash impairment of intangible assets and goodwill in that segment. Cash and cash equivalents were $6.2 million as of June 30, 2022, plus about $5.4 million of net proceeds from the September private placement. Management said these funds should support operations and capex into the second half of fiscal 2023 and possibly into the first quarter of fiscal 2024, depending on revenue timing and expenses.

Eric Adams framed 2022 as a difficult year for biotech and small-cap capital markets, but said InMed was able to navigate headwinds and keep advancing its preclinical and clinical programs. His emphasis was on the lead EB program, the glaucoma program, and building a broader cannabinoid analog pipeline protected by patents. He also highlighted cost cuts and financings as necessary steps to preserve capital and keep development moving, while sounding constructive about 2023 milestones.

Brenda Edwards reported the annual loss of $18.6 million, or $33.17 per share, and broke out higher R&D and patent spending of $7.3 million and G&A of $6.9 million, with the G&A increase tied to BayMedica, investor relations, accounting, legal, and Nasdaq-related insurance costs. She said BayMedica delivered $1.1 million of sales and that the segment carried a $3.5 million non-cash impairment. On liquidity, she said cash was $6.2 million at June 30, 2022, supplemented by about $5.4 million of net proceeds from the September financing, and that runway extends into the second half of fiscal 2023 and possibly the first quarter of fiscal 2024. In Q&A she gave a burn estimate of about $900,000 per month all-in, expected to move to about $700,000 per month, with operating expenses around $500,000 per month.

Analysts focused on what could come out of the INM-755 trial, whether the first Phase 2 study could support a filing, and what the burn rate looks like after the cost cuts. Management said the DSMB safety review was blinded, so they could not comment on efficacy data, and they do not think a filing based only on a 20-patient database would be enough, implying another trial will likely be needed. On burn, Brenda Edwards said the all-in run rate was about $900,000 a month and is expected to fall to about $700,000 a month, with operating expenses around $500,000 a month. For the glaucoma program, Dr. Eric Hsu said the first human Phase 1/2 study is expected to focus on safety and IOP reduction, with a possible later Phase 2 looking at neuroprotection.