InMed Pharmaceuticals (INM) AI Stock Analysis

• Market Cap: $2.39M
• 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: -3.07
• Enterprise Value/Revenue: -1.39
• Enterprise Value/Gross Profit: -5.24
• 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: 43 Neutral
• Price Target: $0.85 ▼(-23.75% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven primarily by weak financial quality (large losses and persistent cash burn, plus TTM inconsistency) and bearish technicals (negative MACD and price below longer-term averages). Corporate updates provide some pipeline upside, but valuation signals are not supportive given the non-meaningful P/E and no dividend.

Positive Factors

Balance Sheet Health

Very low leverage and positive equity reduce insolvency and interest-rate risk, providing financial flexibility to fund R&D or negotiate milestone financing. Over a multi-month horizon, low debt limits covenants and creditor constraints, improving the firm's ability to execute clinical plans.

Lead Program Progress

Robust preclinical efficacy signals, demonstrated oral bioavailability and planned FDA pre-IND engagement create a clear, multi-step development roadmap. These milestones (IND-enabling studies, pre-IND, Phase 1 target) materially de-risk timelines and support durable value creation if clinical translation holds.

Manufacturing & Biosynthesis Capabilities

In-house biosynthesis and manufacturing expertise supports lower trial supply risk, potential contract manufacturing revenue, and faster formulation scale-up. Structurally this capability increases optionality for partnerships, licensing or CMO services and can bolster margins if commercialized.

Negative Factors

Persistent Cash Burn

Ongoing negative operating and free cash flow creates a sustained funding need, raising dilution risk and constraining multi-year R&D plans. With volatile FCF trends and large TTM outflows, the company must secure external capital to sustain IND-enabling work and trials, affecting strategic optionality.

No Recurring Product Revenue

Absent material commercial sales, the firm relies on equity or financing to fund operations. This structural revenue gap increases dependence on capital markets or partners, heightens dilution risk, and leaves execution tied to successful clinical milestones rather than sustainable cash generation.

Regulatory-Driven Business Contraction

Legislative change forced exit from a commercial segment, removing a revenue and diversification source and imposing severance and wind-down costs. Structurally, this narrows the company's business model to clinical development, increasing execution and funding concentration risks over the medium term.

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 has improved and gross margin rebounded, and leverage is low with positive equity. However, operating and net losses remain far larger than revenue, free cash flow is persistently negative with ongoing burn, and unusually extreme/inconsistent TTM figures increase 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 0.96, and below the 200-day MA of 1.83, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.46 is Neutral, neither overbought nor oversold. The STOCH value of 48.04 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%
XBIO	50 Neutral	$7.47M	-1.38	-60.33%	―	13.30%	22.70%
TCRT	45 Neutral	$7.19M	-1.13	-167.97%	―	―	68.59%
INM	43 Neutral	$2.39M	―	-82.17%	―	-3.27%	51.83%
ENSC	43 Neutral	$2.12M	-0.46	-386.72%	―	1.51%	77.64%

InMed Pharmaceuticals Corporate Events

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.

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.