INM - InMed climbs 23% amid plans to focus on pharma drug development

Canada-based InMed Pharmaceuticals Inc. ( NASDAQ: INM ) added ~23% in the pre-market trading Friday after the company disclosed its plans to reprioritize efforts on pharmaceutical drug development and cut financial exposure to Health & Wellness (“H&W”) sector.

In 2021, INM completed the acquisition of BayMedica, a U.S.-based private firm focused on manufacturing and commercialization of rare cannabinoids.

“….despite the significant efforts by the commercial team at BayMedica, the market demand for the BayMedica naturally-occurring cannabinoids in the Health & Wellness (“H&W”) sector is not progressing as anticipated,” the company said.

With uncertainty on the timing of revenue from the new acquisition, INM is reevaluating if BayMedica will achieve enough margins to justify further investments in the business.

As a result, BayMedica will consider potential strategic alternatives for the commercial business and continue to seek structured supply arrangements and collaborations.

INM said it would have to incur ~$3.5M of non-cash impairment during the quarter ending Jun. 30 in connection with long-lived assets of the BayMedica acquisition.

Read: In Sep., INM agreed to acquire BayMedica in exchange for ~1.8M of its common shares.

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