InMed Provides Update on BayMedica Operations and Strengthens Focus on Pharmaceutical Development Pipeline

Rhea-AI Summary

InMed Pharmaceuticals (NASDAQ: INM) announced BayMedica LLC will wind down its commercial operations due to regulatory uncertainty from H.R. 5371, which could prohibit parts of BayMedica's cannabinoid commercial business if effective November 12, 2026. BayMedica expects to substantially complete the exit before June 30, 2026.

The company will focus exclusively on advancing its pharmaceutical pipeline, notably INM-901 for Alzheimer’s disease and INM-089 for dry age-related macular degeneration, toward IND filings and initial human trials. Estimated one-time employee-related costs total approximately $550,000 plus $120,000 of additional expenditures through fiscal year end.

Positive

• Refocuses internal resources exclusively on pharmaceutical R&D for INM-901 and INM-089
• Targeted timeline to substantially complete BayMedica wind down by fiscal year end June 30, 2026

Negative

• One-time severance and employee-related costs of approximately $550,000
• Additional related expenditures of approximately $120,000 through June 30, 2026
• Termination of BayMedica commercial operations eliminates that revenue stream going forward

Key Figures

Severance and employee costs: $550,000 Additional wind-down expenditures: $120,000 BayMedica revenue: $0.8M +5 more

8 metrics

Severance and employee costs $550,000 Expected BayMedica wind-down severance and employee-related costs FY ending Jun 30, 2026

Additional wind-down expenditures $120,000 Other BayMedica wind-down expenditures through FY ending Jun 30, 2026

BayMedica revenue $0.8M Q2 FY2026 BayMedica revenue, down 26% YoY per Feb 11, 2026 update

Q2 net loss $2.03M Q2 FY2026 net loss for quarter ended Dec 31, 2025

Cash balance $7.0M Cash, cash equivalents and short-term investments as of Dec 31, 2025

BayMedica revenue prior period $1.12M BayMedica revenue in Q1 FY2026, down 11% year-over-year

Short interest 10.31% Short interest as percent of float with 2.13 days to cover

52-week range $0.7321–$7.98 INM 52-week low and high before this news

Market Reality Check

Price: $0.8857 Vol: Volume 102,332 is 1.17x t...

normal vol

$0.8857 Last Close

Volume Volume 102,332 is 1.17x the 20-day average of 87,370, indicating elevated interest into this update. normal

Technical Shares at $0.92 are trading below the 200-day MA of $1.94, and sit 88.47% below the 52-week high.

Peers on Argus

INM fell 5.15% while momentum-screened peers PRFX and SHPH were up about 1.91% a...

2 Up

INM fell 5.15% while momentum-screened peers PRFX and SHPH were up about 1.91% and 7.82%, respectively. With 0 peers moving down in tandem and one peer (SHPH) active on an offering headline, INM’s decline appears stock-specific rather than a sector-wide move.

Historical Context

5 past events · Latest: Feb 11 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 11	Earnings and update	Negative	-10.1%	Q2 loss, lower BayMedica revenue, cash runway and legislative risk highlighted.
Dec 17	Shareholder meeting	Neutral	+7.5%	AGM approvals including auditors and potential 20%+ share issuance under SEPA.
Dec 12	BayMedica risk update	Negative	-16.1%	Warning that H.R. 5371 could materially harm BayMedica’s commercial business.
Nov 06	Earnings and update	Negative	-6.2%	Q1 loss, declining BayMedica revenue and dependence on cash to late 2026.
Oct 16	Board appointment	Positive	-5.5%	Appointment of experienced director to support INM-901 and INM-089 advancement.

Pattern Detected

News tied to BayMedica’s legislative risk and quarterly results has often been followed by negative price reactions, while routine governance items saw a positive response. Management/board changes previously coincided with a decline, indicating generally weak sentiment around most disclosures.

Recent Company History

Over the past six months, INM has repeatedly highlighted BayMedica’s exposure to H.R. 5371 and its impact on rare cannabinoid revenue. Updates on this legislative risk on Dec 12, 2025 and earnings on Nov 6, 2025 and Feb 11, 2026 all saw share price declines, reflecting concern over shrinking commercial contributions and continuing losses. A December shareholder meeting on governance and capital flexibility produced a modest gain. Today’s decision to wind down BayMedica’s commercial operations fits this ongoing transition toward a more pipeline-focused, but less revenue-diversified, profile.

Market Pulse Summary

This announcement formalizes the wind-down of BayMedica’s commercial operations in response to H.R. ...

Analysis

This announcement formalizes the wind-down of BayMedica’s commercial operations in response to H.R. 5371, eliminating InMed’s only revenue-generating segment while incurring about $550,000 in severance and $120,000 in other expenses. Historical filings show prior warnings that this legislation could materially harm BayMedica. Investors may focus on progress and timelines for INM-901 and INM-089, cash usage versus the reported $7.0M balance, and how discontinued operations reshape future financial statements.

Key Terms

cb1/cb2 receptors, ind filings, form 8-k, pro forma, +4 more

8 terms

cb1/cb2 receptors medical

"drug candidates that target CB1/CB2 receptors, today announced an update"

CB1 and CB2 receptors are two types of proteins on cells that interact with cannabinoids, the chemicals produced by cannabis plants and similar molecules made by the body. Think of them as door locks that control signals for mood, appetite, pain and immune activity; drugs that open or block those locks can change symptoms and health outcomes, so they are important targets for therapeutics, regulatory decisions and commercial opportunity in biotech and pharmaceutical investing.

ind filings regulatory

"INM-089 for dry age-related macular degeneration, towards IND filings and"

IND filings are regulatory applications submitted to authorize human testing of a new drug or biologic, outlining laboratory results, manufacturing details and proposed clinical trial plans. For investors, an accepted IND is like a green light to move from lab work to testing in people, reducing regulatory uncertainty and often triggering stock-moving milestones and funding needs; a delayed or rejected IND can halt development and hurt valuation.

form 8-k regulatory

"information, in a Form 8-K filed with the U.S. Securities and Exchange"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

pro forma financial

"outlined the current financial implications, including unaudited pro forma"

Pro forma refers to financial information that is prepared based on estimates or adjustments to show what a company's results might look like under certain scenarios, such as new projects or acquisitions. It helps investors understand the potential impact of future events by providing a clear, hypothetical view of financial performance, much like a weather forecast shows possible future conditions.

age-related macular degeneration medical

"INM-089 for dry age-related macular degeneration, towards IND filings"

Age-related macular degeneration is an eye condition in older adults where the central part of the retina (the macula) progressively loses function, blurring or erasing the sharp, central vision used for reading, driving, and recognizing faces. Investors care because it creates sustained demand for drugs, medical devices, diagnostics, and care services—think of the macula as the camera’s center; if it fails, the market for treatments and related healthcare products can be large and long-lasting.

cannabinoids medical

"its inventory of rare, non-intoxicating cannabinoids would be prohibited"

Compounds that interact with specific receptors in the human body and brain, including those naturally produced by the body, those found in cannabis plants, and lab-made versions. Think of them as keys that can unlock or change biological processes like pain, appetite or mood. Investors track cannabinoids because their health effects, legal status, and product demand drive market opportunities, regulatory risk, and the value of companies developing therapies, consumer products, or supply chains.

logistics technical

"including sales, marketing, limited manufacturing, and logistics. Following"

Logistics is the planning and execution of how goods, materials and related information are moved, stored and delivered from suppliers to customers. It matters to investors because efficient logistics cut costs, speed up delivery and reduce disruptions—similar to a well-run backstage crew that keeps a performance on time—while poor logistics can erode profit margins, damage reputation and create operational risks that affect a company’s value.

consolidated financial information financial

"including unaudited pro forma consolidated financial information, in a Form"

Consolidated financial information combines the financial results and positions of a parent company and the separate businesses it controls into a single set of statements, removing payments and balances between those units so they are not counted twice. For investors it shows the true size, profit and risks of the whole enterprise—like looking at a family budget instead of separate pocketbooks—so you can judge overall cash flow, debt levels and performance more accurately.

AI-generated analysis. Not financial advice.

Vancouver, British Columbia--(Newsfile Corp. - March 6, 2026) - InMed Pharmaceuticals Inc. (NASDAQ: INM) ("InMed" or the "Company"), a pharmaceutical company focused on developing a pipeline of disease-modifying small molecule drug candidates that target CB1/CB2 receptors, today announced an update regarding BayMedica LLC ("BayMedica"), a wholly owned subsidiary of the Company, in light of ongoing uncertainty surrounding U.S. federal legislation.

As previously announced, H.R. 5371, the "Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026" (the "Act") in its current form and without further amendment, will have a material negative impact on BayMedica. Specifically, certain aspects of BayMedica's commercial business and its inventory of rare, non-intoxicating cannabinoids would be prohibited under the Act if it becomes effective as planned on November 12, 2026.

On March 4, 2026, after considering all reasonably available options and a broader strategic assessment, the Company's board of directors (the "Board") ratified, confirmed and approved the decision of the board of directors of BayMedica to wind down and exit BayMedica's commercial operations business segment ("commercial operations"). BayMedica intends to substantially complete the wind down and exit prior to the end of its fiscal year ending June 30, 2026. During the interim period leading to the completion of operational wind down, BayMedica will continue its commercial operations including sales, marketing, limited manufacturing, and logistics.

Following the wind down of commercial operations, the Company will focus exclusively on advancing its core drug development programs, including INM-901 for Alzheimer's disease and INM-089 for dry age-related macular degeneration, towards IND filings and initial human clinical trials. The Company intends to provide shareholders with an update on its pharmaceutical pipeline in the near term.

Eric A. Adams, Chief Executive Officer of InMed, commented, "Following an extensive evaluation of BayMedica's commercial outlook amid increasing regulatory uncertainty, BayMedica's leadership determined to wind down its commercial activities. After careful review, the Board agreed that this strategic step is warranted given the current legislative environment and, further, enables InMed to focus its full internal resources on the development and advancement of our proprietary pharmaceutical drug development programs, which have the greatest potential to deliver long-term shareholder value."

Operational and Financial Impact

The wind down of BayMedica's commercial operations will be executed in an orderly manner designed to minimize disruption to customers, suppliers, and employees. BayMedica's management team is developing a transition plan that will be communicated to affected stakeholders, and the Company currently expects the process to be completed within the coming months. BayMedica is expected to incur severance and other employee-related costs of approximately $550,000 and expects to incur additional related expenditures of approximately $120,000 through the end of this fiscal year ending June 30, 2026. These expenditures are expected to be partially offset by the profits from the sale of BayMedica's products.

The Company has outlined the current financial implications, including unaudited pro forma consolidated financial information, in a Form 8-K filed with the U.S. Securities and Exchange Commission (the "SEC") on March 6, 2026. InMed expects to provide additional updates, as appropriate, in future earnings releases and periodic filings with the SEC.

About InMed:

InMed Pharmaceuticals is a pharmaceutical 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 statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "potential", "possible", "would" and similar expressions. Such statements, based as they are on current expectations of management, inherently involve numerous risks, uncertainties and assumptions, known and unknown, many of which are beyond our control. 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: developing a pipeline of disease-modifying small molecule drug candidates that target CB1/CB2 receptors, statements about the Act, the impact of the Act on BayMedica, decision of the board members of BayMedica to wind down and exit BayMedica's commercial operations business segment as well as financial and operational impact on the wind-down of BayMedica commercial operations.

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 business is disclosed in InMed's Annual Report on Form 10-K and other filings with the Securities 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/286536

FAQ

What did InMed (INM) announce about BayMedica on March 6, 2026?

InMed announced BayMedica will wind down its commercial operations due to regulatory uncertainty. According to the company, BayMedica plans to substantially complete the exit before its fiscal year end on June 30, 2026 while continuing interim sales and transition activities.

How will the BayMedica wind down affect InMed's focus and pipeline (INM)?

The company will concentrate exclusively on its drug development programs, notably INM-901 and INM-089. According to the company, this reallocates internal resources toward IND filings and initial human clinical trials for those two programs.

What are the expected costs to wind down BayMedica announced by InMed (INM)?

InMed expects approximately $550,000 in severance and employee-related costs plus about $120,000 in additional expenditures. According to the company, some costs are expected to be partially offset by profits from product sales during the wind-down period.

When will InMed provide more detail about its pharmaceutical pipeline (INM)?

InMed intends to provide a near-term update on its pharmaceutical pipeline following the wind down decision. According to the company, additional details will be shared in upcoming shareholder updates, earnings releases, and SEC filings.