Breaking Down InMed Pharmaceuticals Inc. (INM) Financial Health: Key Insights for Investors

You're looking at InMed Pharmaceuticals Inc. (INM), and what you see is a classic biotech balancing act: a small but growing commercial revenue stream against a widening burn rate to fuel a high-stakes drug pipeline. For the fiscal year ended June 30, 2025, the company's BayMedica segment delivered a modest revenue of $4.9 million, an 8% increase, but the net loss for the year widened to $8.2 million as they push their core assets forward. That's the reality of development-stage pharma. The crucial number, though, is the cash position: InMed reported having $11.1 million in cash as of June 30, 2025, which they project will fund operations into the fourth quarter of calendar year 2026. That runway is your near-term risk map, but the opportunity lies in their lead candidate, INM-901 for Alzheimer's disease, which is showing promising preclinical data by targeting neuroinflammation-a defintely differentiated approach from the crowded amyloid-beta space. We need to look closely at how they manage that cash against the expected significant increase in research and development (R&D) expenses as they move toward IND-enabling studies; pipeline progress is the only thing that matters here.

Revenue Analysis

You need to understand that InMed Pharmaceuticals Inc. (INM) operates on a two-part model: a revenue-generating commercial arm that funds its high-risk, high-reward pharmaceutical research. For the fiscal year ending June 30, 2025, the company's total sales reached approximately $4.9 million, a growth rate of 8% year-over-year (YoY).

This revenue is defintely not coming from a blockbuster drug yet; it's entirely generated by the commercial subsidiary, BayMedica LLC. This segment supplies non-intoxicating rare cannabinoids to the health and wellness sector, giving the company a crucial financial cushion while its drug pipeline advances.

Here's the quick math on where the money is coming from:

• Primary Revenue Source: BayMedica LLC (Commercial Segment).
• FY2025 Total Revenue: Approximately $4.9 million.
• YoY Growth Rate: 8% increase.

The pharmaceutical division, which is focused on developing drug candidates like INM-901 for Alzheimer's disease and INM-089 for dry age-related macular degeneration, is currently an expense center, not a revenue generator. That commercial revenue is the only thing keeping the lights on for the R&D side of the business.

The entire top line for InMed Pharmaceuticals Inc. (INM) is a single-segment story, which simplifies the analysis but concentrates the risk. The table below shows the segment contribution for the full fiscal year 2025:

What this estimate hides is the pressure on profitability within the commercial segment. While the 8% sales growth is positive, BayMedica has seen its gross margins, which are typically near 40%, impacted by competitive pricing pressures and a shift toward selling lower-margin products. This is a critical near-term risk: if those margins erode further, the financial runway for the pharmaceutical pipeline shortens dramatically. You should also review the company's long-term goals in their Mission Statement, Vision, & Core Values of InMed Pharmaceuticals Inc. (INM).

Profitability Metrics

You need to know if InMed Pharmaceuticals Inc. (INM) is on a sustainable path, and the profitability metrics tell a clear story: this is a pre-commercial, research-heavy biotech firm. The core takeaway is that InMed's profitability is deeply negative, which is typical for a clinical-stage company, but the magnitude of the loss relative to its small revenue base highlights a critical capital burn rate you must monitor.

For the fiscal year ended June 30, 2025, InMed Pharmaceuticals Inc. reported a total revenue of just $4.9 million. Against that modest revenue, the company recorded a net loss of $8.2 million, translating to a Net Profit Margin of approximately -167.3%. This means for every dollar of sales, the company lost about $1.67. That's the cost of drug development.

The operational efficiency picture is complex because the company has two distinct segments: the commercial BayMedica business and the R&D pipeline. The overall operating profitability, proxied by the Earnings Before Interest and Taxes (EBIT) margin, recently stood at a deeply negative -163.8%. This reflects the massive spend required to advance its drug candidates like INM-901 for Alzheimer's disease.

Here's the quick math on the key profitability ratios for InMed Pharmaceuticals Inc. (FY 2025):

• Net Profit Margin: -167.3%
• Operating Profit Margin (EBIT Margin): -163.8%
• Q3 2025 Gross Profit Margin: 13.97%

Gross Margin and Operational Efficiency

The Gross Profit Margin is the best indicator of the commercial BayMedica division's health, which sells cannabinoid products. In the third quarter of fiscal year 2025, this segment generated a gross profit of $176,000 on $1.26 million in revenue, resulting in a gross margin of nearly 14%. Management noted that this margin was impacted by competitive pricing pressures, which led to a 39% decline in gross profit. To be fair, they are focused on reducing supply chain and manufacturing costs to improve margins over time, which is defintely a necessary step.

The real driver of the net loss is the operating expense structure. For the full fiscal year 2025, Research and Development (R&D) expenses were $2.9 million, and General and Administrative (G&A) expenses were $6.6 million. This disproportionate spending on overhead and drug development, compared to the $4.9 million in annual revenue, is the reason for the extreme negative operating and net margins. You can read more about their strategic focus here: Mission Statement, Vision, & Core Values of InMed Pharmaceuticals Inc. (INM).

Profitability Trends and Industry Comparison

The trend shows a widening loss, which isn't necessarily a red flag for a biotech company, but it increases the urgency for new financing. The net loss increased from $7.7 million in fiscal year 2024 to $8.2 million in fiscal year 2025. This increase was driven by higher G&A expenses, which rose from $5.8 million to $6.6 million, even as R&D spending saw a slight decrease. Still, the company expects R&D expenses to increase significantly in the future as their pipeline, particularly INM-901, advances.

When you compare InMed Pharmaceuticals Inc.'s performance to the broader industry, you see a familiar pattern for a company at this stage. The average profitability for the Biotechnology sector in the US is also highly negative, as shown in the table below, but the gross margin disparity is stark.

The industry average Net Profit Margin of -177.1% for Biotechnology shows that deep losses are the norm as companies burn capital on R&D before a drug hits the market. InMed Pharmaceuticals Inc.'s net margin is in line with this norm. However, the company's 14% gross margin is significantly lower than the biotech industry average of 86.3%. This gap is a direct result of InMed's commercial unit selling lower-margin cannabinoid products, rather than high-margin, patent-protected drugs.

Debt vs. Equity Structure

You're looking at InMed Pharmaceuticals Inc. (INM)'s balance sheet to understand how they fund a capital-intensive business like drug development. The direct takeaway is this: InMed Pharmaceuticals Inc. (INM) operates with an extremely low level of financial leverage, relying almost entirely on equity and cash reserves rather than debt to fund its operations and R&D pipeline.

This is a typical, and defintely prudent, structure for a clinical-stage biotechnology company. You want to see a low debt profile when revenue is still modest and the business is not yet profitable. For the fiscal year 2025, InMed Pharmaceuticals Inc. (INM)'s capital structure is overwhelmingly equity-funded.

• Total Debt-to-Equity Ratio: 0.06.
• Long-Term Debt-to-Capital Ratio: 0.00.

Here's the quick math on their debt: The company's Debt-to-Equity (D/E) ratio-a key measure of financial leverage-stands at a very conservative 0.06. To be fair, the average D/E ratio for the broader Biotechnology industry is around 0.17, so InMed Pharmaceuticals Inc. (INM) is significantly less leveraged than its peers. Their long-term debt and capital lease obligation is only about $215,480. That's a tiny fraction of their total assets, which were around $13.36 million in late 2025.

The low debt is a clear signal that InMed Pharmaceuticals Inc. (INM) is balancing its financing primarily through equity funding, which means issuing shares. This is the common playbook for clinical-stage biotechs: raise capital through stock sales, not bank loans, because they don't have the consistent revenue or cash flow to service large debt payments. A low D/E ratio is great for solvency (the ability to meet long-term obligations), but it's a direct result of shareholder dilution.

This is how they fund their cash burn: they rely on equity financing. For instance, the company recently completed a $5 million private placement in November 2025, and secured $2.9 million in gross proceeds from financing activities in January 2025. This strategy keeps the balance sheet clean, but it also means the share count has increased, impacting your ownership slice. As of June 30, 2025, their cash, cash equivalents, and short-term investments stood at $11.1 million, which is the real lifeline, expected to fund operations into the fourth quarter of calendar year 2026.

The table below summarizes the core of their capital structure and its comparison to the industry. You can read more about this in the full post: Breaking Down InMed Pharmaceuticals Inc. (INM) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You're looking at InMed Pharmaceuticals Inc. (INM) and the first thing we need to nail down is whether they have the cash to keep the lights on and fund their drug pipeline. The direct takeaway is that InMed Pharmaceuticals Inc. (INM) has excellent short-term liquidity ratios, which is a significant strength, but this masks a critical cash-burn issue typical of a pre-revenue biotech company.

Assessing InMed Pharmaceuticals Inc. (INM)'s Liquidity

The company's liquidity position, as measured by its current and quick ratios, looks defintely strong. The Current Ratio, which measures current assets against current liabilities, sits impressively high at approximately 6.95, based on recent data. This means InMed Pharmaceuticals Inc. (INM) has nearly seven dollars of short-term assets for every dollar of short-term debt. The Quick Ratio (or Acid-Test Ratio), which excludes inventory-a less liquid asset-is also very high at around 6.25. That's a massive buffer. For a company in the R&D-heavy pharmaceutical space, high liquidity is essential; it allows operations to continue even with high expenses and limited commercial revenue.

Here's the quick math on their short-term health:

• Current Ratio: 6.95
• Quick Ratio: 6.25
• Net Current Asset Value (Working Capital): Approximately $10.77 million (TTM)

This positive working capital trend is a direct result of capital raises, not operating profit. The company's working capital-the difference between current assets and current liabilities-is substantial, but you have to remember that a large portion of this is cash raised from financing activities, not internally generated cash flow. The Net Current Asset Value was approximately $10.77 million on a TTM basis, which is a solid base, but the trend of cash depletion is the real story.

Cash Flow Statements Overview and Runway

When we look beyond the static balance sheet ratios and into the cash flow statement, a clearer picture emerges. For the fiscal year ended June 30, 2025, InMed Pharmaceuticals Inc. (INM) had a net loss of $8.2 million. This translates to a persistently negative Operating Cash Flow, which is the primary liquidity concern. The company is burning cash to fund its research and development (R&D) pipeline, primarily for candidates like INM-901 for Alzheimer's disease.

The cash flow trends break down like this:

The company's cash, cash equivalents, and short-term investments stood at $11.1 million as of June 30, 2025. This cash position is expected to fund operations into the fourth quarter of calendar year 2026. That's a decent runway, but it's still a finite resource. The core strength is the high liquidity; the core risk is the dependence on future financing to offset the operating cash outflow. You can dive deeper into the ownership structure and why investors are buying into this risk by Exploring InMed Pharmaceuticals Inc. (INM) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at InMed Pharmaceuticals Inc. (INM) and trying to figure out if the stock price reflects the underlying value, which is a tricky exercise for any clinical-stage biotech. The direct takeaway is that InMed Pharmaceuticals Inc. is currently trading at a significant discount to its book value, but its negative earnings mean traditional valuation metrics scream caution.

The company is valued like a deep-value asset based on its tangible resources, but the market is defintely pricing in the high risk of drug development. Its latest closing price as of November 21, 2025, was around $1.20, and the stock has been highly volatile, with a 52-week range between a low of $1.13 and a high of $8.27. That's a huge swing.

Key Valuation Ratios: A Mixed Signal

When a company is in the research and development phase, profitability ratios like Price-to-Earnings (P/E) are often meaningless, but they still tell a story. Here's the quick math on InMed Pharmaceuticals Inc.'s core valuation metrics for the 2025 fiscal year:

• Price-to-Earnings (P/E) Ratio: The P/E ratio is approximately -0.24 as of November 2025. This negative number simply reflects the company's net loss of -$8.16 million for the fiscal year ended June 30, 2025. You can't value a biotech on earnings that don't exist yet.
• Price-to-Book (P/B) Ratio: The P/B ratio is around 0.42. A ratio below 1.0 suggests the stock is trading for less than the value of its net tangible assets (book value), which can signal a potential undervaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric is generally considered Not Applicable (N/A) or negative for InMed Pharmaceuticals Inc. The company's TTM (Trailing Twelve Months) EBITDA Margin of -155.92% confirms it is not generating positive earnings before interest, taxes, depreciation, and amortization, making the ratio unhelpful for comparative valuation right now.

The 0.42 P/B ratio is the key here; it shows the market values the company at less than half of its book value, but that's a common scenario for a company burning cash to fund its pipeline, which includes the Alzheimer's disease candidate, INM-901. You are essentially buying assets at a discount, but those assets need to turn into profitable drugs.

Stock Performance and Analyst View

The stock price trend has been brutal. Over the last 52 weeks, InMed Pharmaceuticals Inc. has seen a price change of approximately -70.99%, reflecting significant shareholder dilution and the inherent risks of clinical development. The volatility is extreme.

As a clinical-stage pharmaceutical company, InMed Pharmaceuticals Inc. does not pay a dividend, so both the dividend yield and payout ratio stand at 0.00%. Don't expect passive income here; this is a pure growth-or-bust play.

Analyst consensus leans heavily toward caution. The most recent analyst rating, as of November 19, 2025, is a Sell with a price target of $2.50. This target is significantly higher than the current price, but the rating itself is a clear warning. Technical analysis also points to a Sell candidate, suggesting bearish momentum in the near-term. This means the smart money sees more downside risk than immediate upside, despite the low P/B ratio.

Before making a move, you need to dig into the Breaking Down InMed Pharmaceuticals Inc. (INM) Financial Health: Key Insights for Investors to understand the cash runway and clinical milestones. The valuation metrics alone only tell you the stock is cheap for a reason.

Risk Factors

You need to be clear-eyed about the risks here, especially with a development-stage pharmaceutical company like InMed Pharmaceuticals Inc. (INM). The direct takeaway is that while the company has a cash runway into late 2026, the persistent operational losses and the inherent regulatory risk of its drug pipeline represent the most significant near-term threats to its financial viability. This is a classic biotech risk/reward profile.

Operational and Financial Headwinds

The core financial risk is simple: InMed Pharmaceuticals Inc. (INM) is not profitable and continues to burn cash to fund its research and development (R&D) activities. For the fiscal year ended June 30, 2025, the company reported a net loss of $8.2 million, a widening from the prior year's $7.7 million loss. This is a critical metric because it underscores the company's reliance on capital markets for survival. Here's the quick math: while the cash position of $11.1 million as of June 30, 2025, is projected to fund operations into the fourth quarter of calendar year 2026, any major, unexpected increase in R&D costs or a delay in securing partnership funding could accelerate that timeline. The management's own filings have highlighted a substantial doubt about continuing as a going concern-a serious caveat for any investor.

The commercial segment, BayMedica, is a small source of revenue, which was $4.9 million for the full fiscal year 2025, but it faces its own challenges. We saw gross profit decline in Q3 2025 due to competitive pricing pressures and a shift toward lower-margin products, a trend that continued into Q1 fiscal 2026 with an 11% revenue decrease year-over-year in that quarter. That's a red flag for margin stability.

• Cash Burn: Net loss of $8.2 million in FY2025.
• Liquidity: Must secure additional funding before Q4 2026.
• Commercial Pressure: Pricing adjustments eroding BayMedica margins.

Pipeline and Regulatory Risks

The biggest external risk is the inherent volatility of the pharmaceutical development process. The company's valuation is heavily tied to the success of its lead candidates, INM-901 for Alzheimer's disease and INM-089 for dry age-related macular degeneration (AMD). The risk is binary: either the drugs progress through the Investigational New Drug (IND) enabling studies and clinical trials, or they fail. There is no middle ground that generates significant revenue. The company is actively working to mitigate this by advancing its regulatory strategy, including Chemistry, Manufacturing, and Controls (CMC) development and planning a pre-IND meeting with the FDA for INM-901. But still, one failed trial can wipe out years of investment.

Beyond the clinical side, there are broader external factors. The company's recent filings pointed to macroeconomic risks, including inflationary pressures and the threat of tariffs and trade barriers, which could impact their supply chain and profitability. Also, the company's ability to execute a strategic transaction, like a major licensing deal or acquisition, on favorable terms is a constant uncertainty. Exploring InMed Pharmaceuticals Inc. (INM) Investor Profile: Who's Buying and Why?

Mitigation and Actionable Steps

Management is defintely aware of the runway issue and is taking concrete steps. They are closely monitoring expenses and have secured a Standby Equity Purchase Agreement and raised capital through an At-The-Market (ATM) facility, which helped bolster the cash position to the $11.1 million reported at the end of FY2025. The primary mitigation strategy is operational efficiency paired with pipeline execution.

For you, the investor, the focus should be on the upcoming milestones. The most important action is tracking the progress of INM-901's regulatory path, specifically the timing and outcome of the pre-IND meeting with the FDA, which is the gateway to human trials. This is the next major catalyst, and its success or failure will dictate the stock's short-term trajectory. We need to see the R&D spend-which was $2.9 million in FY2025-translate into clear clinical progress.

Growth Opportunities

You're looking for the clear path forward in a biotech company, and for InMed Pharmaceuticals Inc. (INM), that path is a dual-track strategy: commercial revenue funding high-risk, high-reward pharmaceutical innovation. This model is a key differentiator, giving them a longer runway than most pre-commercial peers.

The core of their near-term financial stability comes from their commercial manufacturing arm, BayMedica, which supplies non-intoxicating rare cannabinoids to the health and wellness sector. For the fiscal year 2025 (FY2025), BayMedica generated approximately $4.9 million in revenue, an 8% increase over the previous year. This revenue stream, with healthy gross margins near 40%, is crucial because it helps offset the burn rate from their pharmaceutical research and development (R&D) activities, which totaled $2.9 million in FY2025. This allows for more predictable capital management.

The real value inflection points, though, are in the pipeline. Here's the quick math: you have a small-molecule drug pipeline targeting multi-billion-dollar markets, supported by a commercial business that keeps the lights on. That's a better position than many early-stage biotechs. The company's cash position of $11.1 million as of June 30, 2025, is projected to fund operations into the fourth quarter of calendar year 2026. Still, R&D expenses are expected to increase significantly as these programs advance.

The pharmaceutical division's growth prospects hinge on three key product innovations:

• INM-901 for Alzheimer's Disease: A differentiated approach targeting multiple biological pathways, including a statistically significant reduction in neuroinflammation in preclinical studies.
• INM-089 for Dry AMD: An emerging therapy for dry age-related macular degeneration, which has shown neuroprotection and is advancing with a selected intravitreal (IVT) formulation.
• INM-755 for Epidermolysis Bullosa: A topical therapy that has completed Phase 2 trials and represents a potential near-term licensing or partnership opportunity.

The strategic initiatives are focused on moving these assets toward human trials. For INM-901, the company is preparing for a pre-Investigational New Drug (IND) meeting with the FDA, a critical step toward a first-in-human clinical trial. For INM-089, the focus is on advancing IND-enabling studies. These milestones are the catalysts that will drive future revenue projections, likely through significant licensing deals rather than direct sales in the near-term.

Their competitive advantage is simple: they are a cannabinoid-inspired drug developer with manufacturing expertise through BayMedica, plus they have an operating revenue stream. This dual-engine model and a pipeline focused on high-unmet-need indications-like Alzheimer's and dry AMD-position InMed Pharmaceuticals Inc. for significant value creation upon successful clinical data readouts. To be fair, the company recorded a net loss of $8.2 million in FY2025, underscoring the capital-intensive nature of this business, but that's the cost of pursuing these large-market opportunities.

For a deeper look into who is currently investing and why, you should check out Exploring InMed Pharmaceuticals Inc. (INM) Investor Profile: Who's Buying and Why?

Here is a snapshot of the core financial health from the fiscal year 2025 report: