InMed Pharmaceuticals (INM) AI Stock Analysis

• Market Cap: $2.22M
• Dividend Yield: N/A
• Average Volume (3M): 113.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.37
• 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: -3.35
• Enterprise Value/Revenue: -1.41
• Enterprise Value/Gross Profit: -5.31
• Enterprise Value/Ebitda: 0.86
• 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: 43 Neutral
• Price Target: $0.79 ▼(-29.64% Downside)
• Action: Reiterated Date: 03/23/26
• Date: Action: Reiterated 03/23/26

The score is held down primarily by weak financial performance (large ongoing losses and persistent cash burn with added TTM uncertainty) and bearish technical signals (below key moving averages with negative MACD). Offsetting factors include a relatively low-debt balance sheet and some positive pipeline-related corporate updates, but valuation support is limited due to a non-meaningful P/E and no dividend.

Positive Factors

Low financial leverage

A very low debt profile reduces bankruptcy and interest-rate risks and preserves strategic optionality. For a clinical-stage biotech, limited leverage lengthens the runway before debt servicing pressures, supports continued R&D investment, and makes external equity raises less encumbered by existing debt covenants.

Pipeline translation & regulatory path

Robust human-relevant preclinical signals and an explicit plan for a U.S. pre-IND meeting materially de-risk the lead program versus purely animal data. Translational evidence plus clear IND-enabling plans improves the probability of reaching Phase 1 and attracting partners or non-dilutive funding over the next 12–24 months.

Top-line growth and margin improvement

Sustained revenue growth and a meaningful gross-margin improvement indicate improving commercial or manufacturing efficiency and product traction in the legacy business. While small in absolute terms, this trend can provide incremental non-dilutive cash and operational learnings that support scaling development and future commercialisation.

Negative Factors

Persistent cash burn

Repeated negative operating and free cash flows mean the company must repeatedly access external financing to fund R&D. That dependence increases dilution risk, can delay programs if markets tighten, and reduces bargaining leverage with partners or acquirers, raising the structural financing burden over the next 6–24 months.

Loss of commercial arm (BayMedica) from regulation

Regulatory-driven wind-down of BayMedica removes a source of commercial revenue and cash cushion, introduces inventory and severance costs, and heightens reliance on preclinical programs. This structural loss narrows revenue diversity and intensifies the company's need to finance clinical development externally.

Large operating losses & negative returns

Operating losses far exceeding revenue demonstrate the business is not earning returns on invested capital. Persistent deep losses constrain reinvestment ability, complicate partner negotiations, and mean any commercialization or scale-up will require substantial additional capital and successful execution to reverse structural negative returns.

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 primarily funds its operations through external financing rather than recurring product revenue. The company has historically generated cash mainly by issuing equity and equity-linked securities (e.g., common shares, warrants/units) via public offerings or private placements; it may also access capital through other financings depending on market conditions. Operating revenue from commercialized prescription products is null (the company has been a clinical-stage developer without a broadly marketed drug generating material sales). Potential future sources of revenue, contingent on successful development and regulatory approvals, would typically include (i) sales of approved therapeutics, (ii) upfront payments, milestone payments, and royalties from licensing or partnering its drug candidates or manufacturing technology, and/or (iii) contract or product sales tied to its cannabinoid manufacturing/biosynthesis capabilities; however, specific active partnerships and their contribution to current earnings are null without company-disclosed, quantified arrangements.

InMed Pharmaceuticals Financial Statement Overview

Summary

Income statement and cash flow are major drags: despite revenue growth and improved gross margin, operating and net losses remain far larger than revenue, and operating/free cash flow are consistently negative with ongoing burn. The balance sheet is comparatively better with low leverage and positive equity, but returns are negative and unusually extreme TTM 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 0.85, above the 50-day MA of 0.95, and below the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 34.72 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%
INM	43 Neutral	$2.22M	―	-82.17%	―	-3.27%	51.83%
TCRT	―	$7.14M	-1.13	-167.97%	―	―	68.59%
XBIO	50 Neutral	$7.17M	-1.38	-60.33%	―	13.30%	22.70%
ENSC	43 Neutral	$2.13M	-0.46	-386.72%	―	1.51%	77.64%

InMed Pharmaceuticals Corporate Events

InMed Reports Positive Preclinical Data for Alzheimer’s Candidate

On March 23, 2026, InMed Pharmaceuticals reported positive preclinical data showing its INM-901 candidate significantly reduced neuroinflammation in advanced 3D human brain organoid models of Alzheimer’s disease. The results, generated with Stem Pharm’s human neuro-immune organoid platform, closely mirror prior in vivo and ex vivo findings, reinforcing mechanistic translation from animal models to human-relevant systems.

The consistent, dose-dependent reduction of key pro-inflammatory markers such as IL-6 and IL-8 across multiple models is seen by the company as de-risking INM-901 ahead of first-in-human studies. InMed plans a U.S. regulatory pre-IND meeting in the third quarter of 2026 and is progressing IND-enabling pharmacology, toxicology and manufacturing work, aiming to move INM-901 into a Phase 1 clinical trial in 2027 as part of the emerging wave of neuroinflammation-focused Alzheimer’s therapies.

The most recent analyst rating on (INM) stock is a Hold with a $0.86 price target. To see the full list of analyst forecasts on InMed Pharmaceuticals stock, see the INM Stock Forecast page.

InMed outlines 2026 development plans for lead programs

On March 9, 2026, InMed outlined its 2026 pharmaceutical development outlook, highlighting significant 2025 preclinical progress for lead Alzheimer’s candidate INM-901, including reduced inflammatory and neurodegenerative biomarkers, evidence of neuroprotection and neurite outgrowth, behavioral improvements, and favorable oral bioavailability, alongside advances in formulation, manufacturing scale-up and regulatory preparation. The company plans a pre-IND meeting with the U.S. FDA for INM-901 in Q3 2026 and continued IND-enabling studies to support a targeted Phase 1 trial initiation in 2027, while its INM-089 dry age-related macular degeneration program has generated supportive preclinical and manufacturing data ahead of a planned Q4 2026 pre-IND meeting, underscoring InMed’s bid to strengthen its position in neuroinflammation-focused and ocular therapeutics and to create longer-term value for shareholders.

MainPoint1: InMed reported strong 2025 preclinical gains for INM-901, showing anti-neuroinflammatory effects, neuroprotection, behavioral benefits and oral bioavailability, while advancing formulation, manufacturing and regulatory groundwork.
MainPoint2: The company’s 2026 plan centers on FDA pre-IND meetings and IND-enabling work for INM-901 and INM-089, aiming to launch a Phase 1 Alzheimer’s trial in 2027 and reinforce its neuroscience and ocular disease pipeline.

The most recent analyst rating on (INM) stock is a Hold with a $0.84 price target. To see the full list of analyst forecasts on InMed Pharmaceuticals stock, see the INM Stock Forecast page.

InMed Pharmaceuticals Exits BayMedica to Refocus on Pipeline

InMed Pharmaceuticals said that on March 4, 2026, its board ratified BayMedica LLC’s decision to wind down and exit its commercial operations in rare, non-intoxicating cannabinoids before the end of the fiscal year ending June 30, 2026, in response to the expected impact of H.R. 5371, which would prohibit aspects of BayMedica’s business from November 12, 2026. During the wind-down period, BayMedica will continue limited sales and manufacturing, while InMed will incur about $550,000 in severance and $120,000 in other wind-down costs, then shift to focus exclusively on advancing its pharmaceutical pipeline, including drug candidates INM-901 for Alzheimer’s disease and INM-089 for dry age-related macular degeneration.

The company expects these wind-down expenditures to be partially offset by profits from product sales before operations cease, although it cautioned that actual costs, timing and additional charges could differ materially from current estimates. On March 6, 2026, InMed issued a press release detailing the decision and provided unaudited pro forma financial information to reflect BayMedica’s commercial operations as discontinued, underscoring a strategic pivot away from commercial cannabinoid ingredients toward clinical-stage drug development.

The most recent analyst rating on (INM) stock is a Hold with a $0.73 price target. To see the full list of analyst forecasts on InMed Pharmaceuticals stock, see the INM Stock Forecast page.

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.