InMed Pharmaceuticals (INM) AI Stock Analysis

• Market Cap: $2.48M
• Dividend Yield: N/A
• Average Volume (3M): 113.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.49
• Revenue Growth: -3.27%
• EPS Growth: 51.83%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.51
• Shares Outstanding: 2,919,186
• 10 Day Avg. Volume: 156,716
• 30 Day Avg. Volume: 113,414
• PEG Ratio: <0.01
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -0.41
• Enterprise Value/Market Cap: -2.93
• Enterprise Value/Revenue: -1.38
• Enterprise Value/Gross Profit: -5.20
• Enterprise Value/Ebitda: 0.84
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $0.90 ▼(-19.82% Downside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is held down mainly by weak financial performance (large continuing losses and cash burn with added uncertainty from inconsistent TTM vs annual figures) and bearish technicals (price below key moving averages and negative MACD). Valuation provides limited support due to negative earnings, while recent corporate updates show promising R&D progress but are offset by liquidity and regulatory risks.

Positive Factors

Low leverage / strong balance sheet

Very low reported leverage and consistently positive equity reduce bankruptcy and interest-rate risk, giving management structural flexibility to fund R&D via equity or partnerships rather than expensive debt. This durable balance-sheet positioning supports long-term program investment and strategic options.

Revenue growth and improving gross margin

Multi-year top-line growth with material margin improvement signals early commercial or operational progress in manufacturing or product mix. Sustained revenue expansion and higher gross margins reduce future funding needs and make scaling clinical programs and partnerships more feasible over the medium term.

Clinical pipeline de-risking (INM-901, INM-089)

Robust PK in large animals and active pre-IND/preclinical progress materially lower technical risk for key programs. Advancement toward human trials and GLP-enabling work increases prospects for partnering, milestone payments or IND filings, underpinning long-term value creation beyond current lab-stage status.

Negative Factors

Persistent negative cash flow

Chronic operating and free-cash-flow deficits create ongoing reliance on external financing and raise dilution risk for shareholders. Large, volatile cash burn limits runway, stresses capital-allocation choices, and forces frequent equity raises unless commercial cash generation or partner funding is secured.

Large operating and net losses

Operating and net losses far exceed revenues, indicating the cost structure is distant from breakeven. Sustained negative profitability reduces returns on invested capital and requires repeated financing or strategic exits; it also constrains investment pace in development without diluting stakeholders.

Regulatory risk to BayMedica business

Legislative action that threatens a subsidiary's commercial model is a structural business risk: loss of BayMedica revenue and potential asset impairments would reduce diversification, cut near-term cash contributions, and increase strategic uncertainty for a company already dependent on external funding.

InMed Pharmaceuticals Business Overview & Revenue Model

Company Description

InMed Pharmaceuticals Inc., a clinical stage pharmaceutical company, researches and develops cannabinoid-based therapies. The company's lead product is INM-755, a cannabinol topical cream, which is in a second Phase I clinical trials for the treatment of epidermolysis bullosa. The company is also involved in developing INM-088, which is in preclinical studies for the treatment of glaucoma; and INM-405 for the treatment of pain. In addition, it engages in the development of cannabinoid-based treatments for various diseases, including dermatology and ocular diseases. Further, the company works on IND-enabling pharmacology and preclinical toxicology studies; and IntegraSyn, an integrated biosynthesis-based manufacturing approach, for synthesizing pharmaceutical-grade cannabinoids. It has a research collaboration agreement with BayMedica Inc. for the manufacturing and testing of novel cannabinoid therapeutics. The company was formerly known as Cannabis Technologies Inc. and changed its name to InMed Pharmaceuticals Inc. in October 2014. InMed Pharmaceuticals Inc. was incorporated in 1981 and is headquartered in Vancouver, Canada.

How the Company Makes Money

InMed Pharmaceuticals generates revenue primarily through the development and commercialization of cannabinoid-based products. The company's key revenue streams include the sales of pharmaceutical-grade cannabinoids, licensing agreements, and partnerships with other pharmaceutical and biotechnology companies. InMed's proprietary IntegraSyn™ manufacturing technology contributes to its earnings by enabling the efficient synthesis of rare cannabinoids at a commercial scale, thus enhancing its product offerings and market reach. Additionally, strategic collaborations and partnerships play a significant role in expanding its revenue base by leveraging shared expertise and resources in product development and distribution.

InMed Pharmaceuticals Financial Statement Overview

Summary

Revenue growth and improved gross margin are positives, and leverage is low with positive equity. However, operating/net losses remain far larger than revenue, cash flow is consistently negative with ongoing free-cash-flow burn, and unusually extreme TTM values versus annual figures add uncertainty.

Income Statement

INM shows meaningful top-line momentum in the annual reports (revenue rising from ~$1.1M in 2022 to ~$4.9M in 2025), and gross margin improved versus 2024 (about 35% in 2025 vs ~24% in 2024). However, profitability remains very weak: operating losses are larger than revenue (2025 operating margin around -158%) and net losses are similarly outsized (2025 net margin around -165%), indicating the cost structure is still far from breakeven. The TTM (Trailing-Twelve-Months) figures appear inconsistent versus the annual scale and show extremely large losses, which increases uncertainty and keeps the score low.

Balance Sheet

The balance sheet is a relative strength: leverage is low across periods (debt-to-equity roughly 2% in TTM (Trailing-Twelve-Months) and ~6% in 2025 annual), suggesting limited balance-sheet debt risk. Total equity is positive in all periods provided. The key weakness is returns: losses translate into negative returns on equity in every period, implying shareholder capital is not currently earning a positive return.

Cash Flow

Cash generation is weak with consistently negative operating cash flow and negative free cash flow across all annual periods (roughly -$7M to -$16M historically, and negative again in 2025). Cash burn did not show a steady improving trend (free cash flow growth is volatile, including declines in 2025 vs 2024), and operating cash flow does not cover profitability in a healthy way (coverage is negative given losses and cash outflows). The TTM (Trailing-Twelve-Months) cash outflow is extremely large relative to the annual history provided, which heightens concern around burn and data consistency.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	5.28M	4.94M	4.60M	4.14M	1.09M	0.00
Gross Profit	1.40M	1.71M	1.10M	1.40M	543.55K	0.00
EBITDA	-8.69M	-7.26M	-7.06M	-7.78M	-13.28M	-12.17M
Net Income	-9.07M	-8.16M	-7.68M	-7.95M	-18.60M	-12.65M
Balance Sheet
Total Assets	15.36M	21.23M	16.17M	18.69M	16.46M	12.10M
Cash, Cash Equivalents and Short-Term Investments	9.60M	15.09M	8.99M	11.81M	8.01M	9.16M
Total Debt	730.14K	1.01M	1.32M	518.92K	1.02M	333.64K
Total Liabilities	2.20M	2.92M	3.58M	2.67M	4.78M	2.97M
Stockholders Equity	13.16M	18.30M	12.59M	16.02M	11.69M	9.12M
Cash Flow
Free Cash Flow	-8.91M	-7.77M	-7.00M	-7.45M	-15.62M	-9.79M
Operating Cash Flow	-8.91M	-7.77M	-6.99M	-7.28M	-15.58M	-9.79M
Investing Cash Flow	0.00	0.00	-9.29K	-661.80K	-673.00K	-1.73K
Financing Cash Flow	10.90M	12.27M	4.65M	10.68M	15.07M	10.85M

InMed Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INM, the sentiment is Negative. The current price of 1.12 is above the 20-day moving average (MA) of 0.94, above the 50-day MA of 1.08, and below the 200-day MA of 1.99, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 36.72 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INM.

InMed Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TCRT	45 Neutral	$7.12M	-1.38	-145.65%	―	―	68.59%
ENSC	43 Neutral	$2.26M	-0.10	-270.54%	―	1.51%	77.64%
INM	42 Neutral	$2.48M	-0.22	-82.17%	―	-3.27%	51.83%
XBIO	42 Neutral	$5.80M	-1.24	-57.43%	―	13.30%	22.70%

InMed Pharmaceuticals Corporate Events

InMed Highlights Q2 Results Amid Cash, Regulatory Pressures

On February 11, 2026, InMed reported second-quarter fiscal 2026 results for the period ended December 31, 2025, highlighting progress in its neurology and ophthalmology programs while managing a tightening cash position. The company completed key pharmacokinetic studies for Alzheimer’s candidate INM-901, showing robust oral bioavailability with no adverse neurological effects in large animals, and advanced preclinical work on INM-089 for dry AMD, as it prepares for pre-IND meetings and GLP-enabling studies supporting future IND submissions.

Financially, BayMedica revenue fell 26% year over year to $0.8 million on weaker demand linked to pending U.S. legislative changes, while R&D expenses declined to $0.6 million and G&A held roughly flat at $1.6 million. Cash, cash equivalents and short-term investments dropped to $7.0 million from $11.1 million at June 30, 2025, with management expecting liquidity to last into the fourth quarter of calendar 2026, though potential implementation of H.R. 5371 could force BayMedica inventory write-offs, strategic divestiture or shutdown, posing a material risk to future operations and financial performance.

The most recent analyst rating on (INM) stock is a Sell with a $0.88 price target. To see the full list of analyst forecasts on InMed Pharmaceuticals stock, see the INM Stock Forecast page.

InMed Shareholders Approve Directors and Equity Financing Flexibility

On December 17, 2025, InMed Pharmaceuticals held its 2025 Annual General and Special Meeting of Shareholders, where 35.43% of its 2.8 million outstanding common shares were represented in person or by proxy. Shareholders re-elected five directors to serve until the 2026 annual meeting, approved CBIZ CPAs P.C. as the company’s auditor for the coming year, and endorsed the potential issuance of 20% or more of the company’s outstanding common shares as of December 13, 2024 under a Standby Equity Purchase Agreement with YA II PN, Ltd., in line with Nasdaq listing rules, signaling continued shareholder support for the existing board, governance structure and flexible equity financing options. No other matters came to a vote at the meeting, and the company reported the voting results on SEDAR on December 17, 2025.

The most recent analyst rating on (INM) stock is a Sell with a $2.50 price target. To see the full list of analyst forecasts on InMed Pharmaceuticals stock, see the INM Stock Forecast page.

InMed Faces Challenges from New U.S. Legislation

On December 12, 2025, InMed Pharmaceuticals announced that the recently signed H.R. 5371 Act in the United States could materially negatively impact its subsidiary, BayMedica Inc., by prohibiting certain aspects of its commercial business related to rare, non-intoxicating cannabinoids. Despite this, InMed’s core pharmaceutical programs, including treatments for Alzheimer’s and age-related macular degeneration, remain unaffected and continue to progress under FDA guidance.

The most recent analyst rating on (INM) stock is a Sell with a $2.50 price target. To see the full list of analyst forecasts on InMed Pharmaceuticals stock, see the INM Stock Forecast page.

InMed Pharmaceuticals Completes Key Study for INM-901

On November 18, 2025, InMed Pharmaceuticals announced the successful completion of pharmacokinetic studies in large animal models for its Alzheimer’s disease candidate, INM-901. The studies demonstrated robust bioavailability and no adverse neural or behavioral effects, supporting the potential utility of INM-901 in neurodegenerative disorders. This marks a significant step towards human clinical trials, with preparations underway for a pre-IND meeting with the FDA and further development activities.

The most recent analyst rating on (INM) stock is a Sell with a $2.50 price target. To see the full list of analyst forecasts on InMed Pharmaceuticals stock, see the INM Stock Forecast page.