InMed Pharmaceuticals (INM) AI Stock Analysis

• Market Cap: $2.80M
• Dividend Yield: N/A
• Average Volume (3M): 113.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.50
• Revenue Growth: -3.27%
• EPS Growth: 51.83%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.44
• Shares Outstanding: 2,804,186
• 10 Day Avg. Volume: 156,716
• 30 Day Avg. Volume: 113,414
• PEG Ratio: <0.01
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -0.41
• Enterprise Value/Market Cap: -3.25K
• Enterprise Value/Revenue: -1.73K
• Enterprise Value/Gross Profit: -4.99K
• Enterprise Value/Ebitda: 1.13K
• 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: 44 Neutral
• Price Target: $0.97 ▼(-13.39% Downside)

The score is primarily pressured by weak financial performance—persistent losses, contracting revenue, and ongoing cash burn—followed by bearish technical signals with the stock trading below major moving averages. Valuation offers limited support due to negative earnings and no dividend data, while corporate events are mixed with a meaningful regulatory headwind offset by R&D progress and added financing flexibility.

Positive Factors

Low balance-sheet leverage

Very low reported debt-to-equity (~0.06) reduces near-term interest and refinancing pressure, giving management runway to advance clinical programs without large fixed financing costs. This structural balance-sheet strength lowers solvency risk during multi-quarter R&D timelines.

Progress on INM-901 preclinical studies

Successful large-animal PK studies with robust bioavailability and no adverse neural/behavioral effects materially de-risks INM-901 science and supports an upcoming pre-IND engagement. That advancement materially improves the probability of entering human trials over the next several quarters.

Established financing flexibility

Shareholder approval for a standby equity facility provides a durable, contractual pathway to raise capital when needed. For a clinical-stage biotech with ongoing cash burn, formal access to committed capital sources materially reduces near-term funding uncertainty and supports continued R&D execution.

Negative Factors

Persistent negative cash flow

Consistent TTM operating and free cash outflows (~-$7.5M) indicate sustained cash burn that will require further external funding. Over 2–6 months this depletes runway, forces financing decisions, and raises dilution or execution risk if capital access tightens or terms worsen.

Small, contracting revenue base

A modest $5.3M TTM revenue base that is contracting leaves fixed costs and R&D largely unsupported by operations. Even with mid-30% gross margins, falling top-line limits the ability to scale internally, increases reliance on financing, and slows progress toward sustainable profitability.

Regulatory headwind to BayMedica commercial business

New U.S. legislation restricting aspects of BayMedica's rare-cannabinoid commercial activities is a structural risk that can eliminate or curtail a potential nonclinical revenue stream. Loss of this optionality increases dependence on long-timeline drug programs and heightens business concentration risk.

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

Income statement and cash flow are the main drags: modest TTM revenue (~$5.3M) with sharp contraction, deeply negative profitability (net margin around -165%), and continued cash burn (TTM operating/free cash flow about -$7.5M) with worsening free cash flow trend. Balance sheet leverage is low (debt-to-equity ~0.06), which helps, but negative ROE and balance sheet comparability uncertainty limit confidence. KPI notes suggest BayMedica has had periods of improved segment profitability, but the overall company profile remains loss- and cash-burn-driven.

Income Statement

TTM (Trailing-Twelve-Months) revenue is modest (~$5.3M) and has contracted sharply (revenue growth rate -2.669). Gross margin is steady in the mid-30% range, indicating some consistency in product/service economics. However, profitability remains deeply negative: EBIT and net income are both meaningfully below zero, with net margin around -165%, showing the cost base is far larger than current revenue. While losses have been persistent across the annual periods shown, there is not yet clear evidence of operating leverage toward breakeven.

Balance Sheet

Leverage appears low based on the reported debt-to-equity ratio (~0.06 in the most recent periods), which is a balance-sheet positive and reduces near-term financial risk from interest and refinancing pressure. That said, returns on equity are consistently negative (TTM return on equity roughly -0.93), reflecting ongoing losses and weak shareholder value creation from operations. Also, the latest TTM balance sheet figures show an unusually large step-up in equity/assets versus prior annual periods, creating comparability and quality-of-data uncertainty that tempers confidence in the headline strength.

Cash Flow

Cash generation is weak: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative (about -$7.5M), indicating continued cash burn to fund operations. Free cash flow trend is also unfavorable (TTM free cash flow growth -2.822), suggesting accelerating outflows versus the prior base. A positive note is that free cash flow roughly tracks net income (free cash flow to net income ~1.0), implying losses are largely reflected in cash rather than being masked by non-cash accounting, but the overall profile still points to ongoing financing needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.27M	4.94M	4.60M	4.14M	1.09M	0.00
Gross Profit	1.83M	1.71M	1.10M	1.40M	543.55K	0.00
EBITDA	-8.09M	-7.26M	-7.06M	-7.78M	-13.28M	-12.17M
Net Income	-8.86M	-8.16M	-7.68M	-7.95M	-18.60M	-12.65M
Balance Sheet
Total Assets	13.36B	15.58M	11.82M	14.11M	16.46M	9.78M
Cash, Cash Equivalents and Short-Term Investments	9.37B	11.08M	6.57M	8.91M	8.01M	7.41M
Total Debt	215.48M	741.26K	962.66K	391.71K	1.02M	269.77K
Total Liabilities	1.77B	2.15M	2.62M	2.02M	4.77M	2.40M
Stockholders Equity	11.59B	13.43M	9.21M	12.09M	11.69M	7.38M
Cash Flow
Free Cash Flow	-7.55M	-7.77M	-7.00M	-7.45M	-15.62M	-9.79M
Operating Cash Flow	-7.55M	-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	11.30M	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: Positive
• RSI: Neutral
• STOCH: Positive

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 1.10, below the 50-day MA of 1.20, and below the 200-day MA of 2.13, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 35.85 is Neutral, neither overbought nor oversold. The STOCH value of 7.69 is Positive, 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	$5.47M	-1.01	-145.65%	―	―	68.59%
INM	44 Neutral	$2.80M	-0.14	-82.17%	―	-3.27%	51.83%
ENSC	43 Neutral	$2.07M	-0.08	-270.54%	―	1.51%	77.64%
XBIO	42 Neutral	$4.99M	-1.02	-57.43%	―	13.30%	22.70%

InMed Pharmaceuticals Corporate Events

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.