InMed Provides Update on BayMedica Commercial Business

Rhea-AI Summary

InMed (NASDAQ: INM) said on December 12, 2025 that provisions in H.R. 5371 (the "Act") could materially and negatively affect the commercial business of subsidiary BayMedica if those provisions come into force on November 12, 2026.

The company said the Act in its current form would prohibit certain aspects of BayMedica's commercial operations and its inventory of rare, non‑intoxicating cannabinoids, and that BayMedica is evaluating alternative supply‑chain options while continuing normal operations.

InMed emphasized the Act does not affect its core pharmaceutical programs and reaffirmed progress on INM‑901 for Alzheimer's disease and INM‑089 for age‑related macular degeneration. The company noted uncertainty whether the relevant Act provisions will take effect or be amended and pointed investors to its SEC filings for details on BayMedica's contribution to consolidated results.

Positive

• Pharmaceutical programs (INM-901, INM-089) remain unaffected by the Act
• BayMedica is evaluating alternative supply‑chain options to maintain compliance
• Company continues normal operations while assessing regulatory uncertainty through Nov 12, 2026

Negative

• Provisions in H.R. 5371 could prohibit key BayMedica commercial activities if effective Nov 12, 2026
• Inventory of rare non-intoxicating cannabinoids at BayMedica could be prohibited under the Act
• Possible material negative impact on BayMedica's contribution to consolidated financial results

Key Figures

Act number H.R. 5371 U.S. legislation cited as impacting BayMedica

Effective date November 12, 2026 Date when Act could come into force for BayMedica

One-year window 1 year Period before November 2026 for stakeholders to assess Act

Act timeframe 2026 Extensions Act, 2026 referenced in legislation title

Market Reality Check

$1.43 Last Close

Volume Volume 309,198 vs 20-day average 888,849 (relative volume 0.35x) shows muted trading interest. low

Technical Price $1.43 is trading below the $2.39 200-day moving average, reflecting a longer-term downtrend.

Peers on Argus 1 Up 2 Down

INM moved up 5.3% while several high-affinity peers like SHPH, RDHL, and SBFM showed declines between about 1–8%, indicating today’s move is more stock‑specific than sector‑driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 06	Earnings update	Negative	-1.4%	Q1 FY2026 results showed lower BayMedica revenue and ongoing net losses.
Oct 16	Board appointment	Positive	-5.5%	Appointment of John Bathery with extensive deal experience to the Board.
Oct 09	Board appointment	Positive	-4.5%	Addition of Neil Klompas, an experienced biotech executive, to the Board.
Sep 23	Full-year earnings	Positive	-5.7%	FY2025 results with revenue growth and encouraging INM-901 and INM-089 data.
Sep 05	Conference participation	Neutral	+1.0%	Announcement of participation in an investment conference highlighting INM-901 data.

Pattern Detected

Recent news often saw negative price reactions, even on operational or governance updates, suggesting a tendency for weakness around both earnings and management headlines.

Recent Company History

Over the last few months, InMed has focused on advancing its cannabinoid-based pipeline while managing a challenged commercial backdrop. Fiscal 2025 results showed revenue of $4.9M and a net loss of $8.2M, with cash of $11.1M supporting operations into Q4 2026. Q1 FY2026 results highlighted lower BayMedica revenue of $1.12M and cash of $9.3M. The company added experienced directors and continued progress on INM-901 and INM-089. Today’s update ties directly to BayMedica’s regulatory and commercial outlook.

Market Pulse Summary

The stock is down -7.7% following this news. A negative reaction despite positive aspects, such as continued focus on INM-901 and INM-089, would fit a pattern where INM has often traded lower around news, including prior earnings and board changes. The update highlights possible future constraints on BayMedica’s commercial activities if provisions of the Act take effect on November 12, 2026, which could weigh on sentiment given BayMedica’s contribution to prior revenues and cash flow.

Key Terms

supply chain technical

"BayMedica is evaluating the potential of creating alternative supply chain options"

A supply chain is the series of steps involved in producing and delivering a product or service, from raw materials to the final customer. It includes all the processes, such as sourcing materials, manufacturing, and distribution, that ensure products reach consumers. For investors, understanding the supply chain helps gauge how efficiently a company can meet demand and manage costs, impacting its profitability and stability.

fda regulatory

"operate within the traditional drug approval pathway under FDA guidance"

The FDA is the U.S. federal agency that evaluates and approves medical drugs, devices, biological therapies and certain foods; think of it as the gatekeeper that decides whether a medical product is safe and effective for patients. For investors, FDA decisions determine whether a company can sell a product, affect expected revenue and introduce regulatory risk, so approvals, rejections or safety warnings can quickly move a company's valuation and stock price.

alzheimer's disease medical

"INM-901 for the treatment of Alzheimer's disease and INM-089"

A progressive brain disorder that slowly erodes memory, thinking and the ability to carry out daily tasks as nerve cells are damaged and lost; symptoms typically worsen over years and can lead to severe impairment. Investors care because it drives a large, growing market for diagnostics, treatments and care services, but also carries high scientific, regulatory and commercial risk—similar to developing a complex new product that must pass difficult safety tests before it can reach patients.

AI-generated analysis. Not financial advice.

Vancouver, British Columbia--(Newsfile Corp. - December 12, 2025) - InMed Pharmaceuticals Inc. (NASDAQ: INM) ("InMed" or the "Company"), a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates for diseases with high unmet medical needs, today released the following statement.

Recently, H.R. 5371, the "Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026" (the "Act") was signed into law.

The Company has been evaluating the impact of the Act with its advisors and believes that the Act, in its current form and without further amendment, will have a material negative impact on BayMedica Inc. ("BayMedica"), a subsidiary of the Company. Specifically, certain aspects of BayMedica's commercial business and its inventory of rare, non-intoxicating cannabinoids would be prohibited under the Act if it comes into force on November 12, 2026, in its current form. BayMedica is evaluating the potential of creating alternative supply chain options in order to maintain continued regulatory compliance.

InMed Remains Focused on Core Pharmaceutical Programs

Despite the potential impact of the Act on BayMedica's commercial operations, the new legislation does not affect InMed's pharmaceutical drug development programs, which operate within the traditional drug approval pathway under FDA guidance. InMed remains fully committed to advancing its core pharmaceutical business. The Company continues to progress INM-901 for the treatment of Alzheimer's disease and INM-089 for the treatment of age-related macular degeneration (AMD).

InMed's Evaluation of Potential Impact of Act on BayMedica

It is unknown to the Company whether the sections of the Act that would impact BayMedica will ultimately go into effect on November 12, 2026, or at all, or if those sections will be replaced, impacted or amended by subsequent acts of U.S. policymakers. The Company notes that this one-year window leading to November 2026 affords policymakers, the broader industry and the Company time to evaluate the regulatory framework and the implications of the Act in its current form to consider potential legislative remedies, regulatory clarifications, and additional stakeholder engagement. The Company supports a balanced, science-based regulatory approach that promotes consumer safety while preserving responsible access to non-intoxicating cannabinoid products.

BayMedica is evaluating alternative options and, in the meantime, is continuing to operate its business in the normal course as the Act is not currently scheduled to come into force until November 2026. BayMedica has not set a timetable for the conclusion of its evaluation, nor has it made any definitive decisions related to any potential alternative options at this time.

You should review this press release together with the Risk Factors, Management's Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and footnotes in the Company's latest Annual, Quarterly and Other Reports filed with the Securities and Exchange Commission for a discussion of BayMedica's contribution to the Company's consolidated financial results and balance sheet that could be negatively impacted if the Act comes into force in its current form.

About InMed

InMed Pharmaceuticals is a pharmaceutical drug development company focused on developing a pipeline of proprietary small molecule drug candidates targeting the CB1/CB2 receptors. InMed's pipeline consists of three separate programs in the treatment of Alzheimer's, ocular and dermatological indications. For more information, visit www.inmedpharma.com.

Investor Contact:
Colin Clancy
Vice President, Investor Relations
and Corporate Communications
T: +1.604.416.0999
E: ir@inmedpharma.com

Cautionary Note Regarding Forward-Looking Information:

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is based on management's current expectations and beliefs and is subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Without limiting the foregoing, forward-looking information in this news release includes, but is not limited to, statements about the Act, the impact of the Act on BayMedica, any potential modifications to the Act and/or the timing thereof and the alternative options available to BayMedica and the Company.

With respect to the forward-looking information contained in this news release, InMed has made numerous assumptions regarding, among other things: its ability to obtain all necessary regulatory approvals on a timely basis, or at all, potential U.S. legislative changes and developments, if any; and continued economic and market stability. While InMed considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause InMed's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks and uncertainties facing InMed's stand-alone business is disclosed in InMed's Annual Report on Form 10-K, InMed's Quarterly Report on Form 10-Q and other filings with the Security and Exchange Commission on www.sec.gov.

All forward-looking information herein is qualified in its entirety by this cautionary statement, and InMed disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/277952

FAQ

What did InMed announce about BayMedica and H.R. 5371 on December 12, 2025?

InMed said provisions in H.R. 5371 could materially harm BayMedica's commercial business if effective on November 12, 2026.

Will InMed's drug programs INM-901 and INM-089 be affected by the Act (NASDAQ: INM)?

No; InMed stated the Act does not affect its pharmaceutical programs, including INM-901 and INM-089.

What steps is BayMedica taking in response to the Act impacting INM subsidiary BayMedica?

BayMedica is evaluating alternative supply‑chain options and continuing normal operations while assessing regulatory options.

When could the Act's provisions affecting BayMedica go into force according to InMed?

The company said the provisions could come into force on November 12, 2026, but outcome and timing remain uncertain.

How should investors assess BayMedica's potential financial impact on InMed (INM)?

Investors should review InMed's SEC filings, including Risk Factors and MD&A, for details on BayMedica's contribution to consolidated results.