InMed Pharmaceuticals Inc. (INM): PESTLE Analysis [Nov-2025 Updated]

You're looking at InMed Pharmaceuticals Inc. and wondering if their novel cannabinoid pipeline can definetly survive the market. The truth is, for a pre-revenue biotech, the external forces-Political, Economic, Social, Technological, Legal, and Environmental-are just as critical as the science. Their biggest near-term battle is cash runway, especially against a backdrop of high interest rates and a projected 2025 fiscal year net loss of approximately $15.5 million. We need to see how shifting US federal policy and advancements in synthetic production stack up against that burn rate, so let's dive into the full PESTLE landscape to find the actionable insights.

InMed Pharmaceuticals Inc. (INM) - PESTLE Analysis: Political factors

Shifting US federal stance on cannabis scheduling impacts drug development.

You need to pay close attention to the federal government's slow but defintely moving stance on cannabis scheduling, as it directly impacts the regulatory and financial landscape for a cannabinoid-focused company like InMed Pharmaceuticals Inc. The Drug Enforcement Administration (DEA) has proposed moving cannabis from its current Schedule I classification, which says it has no accepted medical use, to a less restrictive Schedule III.

If this reclassification is finalized-a decision that is still pending with the Attorney General in late 2025-it's a massive win for the entire pharmaceutical sector. The biggest immediate benefit would be relief from the Internal Revenue Code Section 280E, which currently prohibits businesses dealing in Schedule I or II substances from deducting ordinary business expenses. This tax relief would significantly improve the financial viability of developing cannabis-related prescription drugs, unlocking a new federal market.

Also, moving to Schedule III would ease the stringent regulatory hurdles that currently restrict clinical research on Schedule I substances, making it simpler and faster to conduct trials for new cannabinoid-based therapies.

• Schedule I: High abuse potential; no accepted medical use.
• Schedule III: Moderate to low potential for dependence; accepted medical use.
• Impact: Eases research, potentially eliminates 280E tax burden.

Government funding priorities for rare disease research (e.g., Epidermolysis Bullosa).

The US government is signaling a clear priority in rare disease research, which is a tailwind for InMed Pharmaceuticals' program targeting Epidermolysis Bullosa (EB). The National Institutes of Health (NIH) has a total program level budget request of $50.1 billion for the Fiscal Year (FY) 2025, which provides the foundation for this type of research.

More specifically, the NIH awarded approximately $26 million in FY2025 grants to establish and strengthen the Rare Diseases Clinical Research Network (RDCRN), plus an additional $5.6 million for the Data Management and Coordinating Center. This dedicated funding stream shows a sustained commitment. Beyond NIH, the Food and Drug Administration (FDA) Office of Orphan Products Development (OOPD) announced availability of funds for its FY2025 Orphan Products Grants Program to support clinical trials for rare diseases, following a strong precedent of awarding $17.2 million over four years for seven new clinical trial grants in FY2024.

This political support translates into a more favorable environment for securing grants and accelerating clinical timelines for an orphan drug candidate. The market is getting more crowded, though; the FDA approved a third EB treatment, ZEVASKYN, in April 2025, showing the space is hot.

Geopolitical tensions affecting global supply chains for pharmaceutical ingredients.

Geopolitical tensions, particularly involving the US-China trade relationship, are creating significant near-term risk and cost inflation in the pharmaceutical supply chain. The US government's move to impose new tariffs on imports is directly affecting Active Pharmaceutical Ingredients (APIs) and intermediates, the core building blocks of drugs.

In July 2025, the US announced plans to impose new tariffs, effective August 1, 2025, with initial rates ranging from 20% to 40% on various goods from over 150 countries. For APIs, a 25% duty has been placed on those sourced from China, and a 20% duty on those from India, affecting widely used ingredients. This is a big problem because nearly 70% of all APIs used in US generics are either sourced from China or originate from intermediates manufactured there. Some firms have already reported API cost increases of 12% to 20%. Companies like InMed Pharmaceuticals, which rely on global sourcing for their synthetic cannabinoid APIs, must now budget for higher input costs and actively diversify their supply chain. That's a clear action item.

Canadian government incentives for biopharma R&D and clinical trials.

As a Canadian-based company, InMed Pharmaceuticals Inc. benefits from the Canadian government's strong political commitment to growing its domestic biomanufacturing and life sciences sector. The government has made significant, multi-year investments totaling more than $2.5 billion across 43 projects to strengthen the ecosystem.

The primary mechanism for this support is the Strategic Innovation Fund (SIF), which provides both repayable and non-repayable contributions to companies of all sizes. These incentives are specifically designed to support R&D, clinical trials, and facility expansion, which is exactly what a biotech firm needs to scale. For example, in March 2025, the government announced a $62 million contribution to Entos Pharmaceuticals' $198.5 million project to build a new R&D and biomanufacturing facility. This shows that large-scale, non-repayable funding is absolutely available for innovative Canadian biopharma projects, which is a clear opportunity to offset R&D costs. You should be actively positioning your clinical programs to capture this capital.

InMed Pharmaceuticals Inc. (INM) - PESTLE Analysis: Economic factors

High interest rates increase the cost of capital for pre-revenue biotech companies.

You are operating in a capital-intensive sector, and the prevailing high interest rate environment in 2025 is a real headwind, making your funding more expensive. When the Federal Reserve maintains elevated rates, the cost of debt financing-should you pursue it-rises significantly, and even the discount rate used in valuing future cash flows (Discounted Cash Flow or DCF analysis) increases. This directly pressures the valuation of pre-commercial firms like InMed Pharmaceuticals Inc..

This macro trend means that every dollar of capital you raise, whether through debt or equity, carries a higher implicit cost. For a company focused on long-term drug development, like the INM-901 program for Alzheimer's disease, this higher cost of capital eats into the net present value of future projected revenues, making the financial hurdle for success taller. The good news is that the Fed started easing monetary policy in September 2025, which could signal a gradual reduction in the cost of capital moving forward, but the environment is still cautious.

Volatility in the small-cap biotech sector limits access to follow-on public offerings.

The small-cap biotech sector has been volatile, which complicates the timing and execution of follow-on public offerings (FPOs) or secondary financings, a critical lifeline for development-stage companies. Investors are defintely more discerning now, favoring companies with de-risked assets or strong clinical data over speculative early-stage plays.

The IPO market has been challenging, and while total funding from public and private sources has started to climb, the market still favors proven drug innovation. InMed Pharmaceuticals Inc. is actively advancing its pipeline, but the market's preference for later-stage assets means any future equity raises could be highly dilutive unless a major clinical milestone is achieved. You must hit your milestones to reduce this market risk.

• Be precise with cash runway: As of June 30, 2025, InMed Pharmaceuticals Inc. held cash, cash equivalents, and short-term investments of $11.1 million.
• Current cash is expected to fund planned operating expenses and capital expenditures into the fourth quarter of calendar year 2026.
• The company is actively planning to seek additional funding through equity financings, debt financings, and/or strategic partnerships.

R&D expenses remain significant, with the company reporting a net loss of approximately $8.2 million in the 2025 fiscal year.

The core economic reality for InMed Pharmaceuticals Inc. remains its pre-profit status, driven by necessary investment in its pharmaceutical pipeline. For the fiscal year ended June 30, 2025, the company reported a net loss of $8.2 million, a widening from the $7.7 million net loss in the previous fiscal year. This loss reflects the high burn rate typical of a biotech firm focused on clinical development.

While the total Research and Development (R&D) expenses decreased slightly to $2.9 million for the fiscal year 2025, down from $3.2 million in 2024, the company expects these expenses to increase significantly in future periods as its key programs, INM-901 and INM-089, advance into more costly clinical stages. This is the quick math: you need to manage the cash burn while accelerating high-value R&D. General and administrative expenses also rose to $6.6 million in FY2025, up from $5.8 million in FY2024.

Global inflation pressures increase costs for clinical trial operations and manufacturing.

Global inflation, while showing signs of easing, still impacts operational costs across the pharmaceutical value chain. For InMed Pharmaceuticals Inc., this means increased costs for essential services like clinical trial operations, contract research organizations (CROs), and the manufacturing of both pharmaceutical candidates and the commercial BayMedica products.

For example, the BayMedica commercial business, which generated $4.9 million in revenue in FY2025, faced declining gross margins due to competitive pricing pressures, even though sales volume increased. This is a clear sign that rising input costs, compounded by the need to remain price competitive, are squeezing profitability. What this estimate hides is that inflation-driven increases in personnel costs, lab supplies, and external contractor fees directly inflate the General and Administrative and R&D lines, making it harder to stretch the existing $11.1 million cash reserve.

InMed Pharmaceuticals Inc. (INM) - PESTLE Analysis: Social factors

You're operating in a pharmaceutical space where public sentiment and patient advocacy are now powerful market forces, not just background noise. For InMed Pharmaceuticals, this social environment is a major tailwind, particularly because your cannabinoid-based pipeline targets areas like Alzheimer's disease and chronic pain where patients are desperate for non-traditional solutions. The challenge, however, is that the medical community's knowledge hasn't kept pace with the public's acceptance.

Growing patient advocacy for non-opioid pain and skin disorder treatments

The push for non-opioid alternatives has become a legislative and social imperative in the US, creating a direct market opportunity for InMed's non-addictive therapeutic approach. Patient advocacy groups successfully drove the passage of the Non-Opioids Prevent Addiction in the Nation (NOPAIN) Act, which took effect in 2025. This legislation is critical because it mandates separate Medicare and Medicaid reimbursement for non-opioid pain treatments in outpatient settings, removing the financial incentive hospitals previously had to default to cheaper opioids. The opioid crisis still affects over 9 million people in the US, so this shift in reimbursement is a huge catalyst for non-opioid adoption.

The momentum is defintely building. You also see the proposed Alternatives to PAIN Act, which aims to further reduce patient cost-sharing for non-opioid pain relief under Medicare Part D, making these alternatives as accessible as generic drugs. This is a clear signal: the market wants non-opioids, and the government is actively removing financial barriers to them. This is a massive advantage for any company with a credible non-opioid pipeline.

Increasing public acceptance of cannabinoid-based medicines, especially non-psychoactive types

Public perception of cannabinoid-based medicine (CBM) has dramatically shifted from stigma to solution, a trend that directly benefits InMed's focus on proprietary, non-psychoactive small molecules. The sheer size of the market tells the story: the global medical cannabis market is projected to reach $21,458.9 million in 2025, with North America accounting for more than 40% of that global revenue, or approximately $7,939.79 million this year.

The growth is explosive, too, with the global market expected to expand at a Compound Annual Growth Rate (CAGR) of 23.50% from 2025 to 2033. This growth is largely fueled by demand for Cannabidiol (CBD) and other non-intoxicating cannabinoids, which are expected to dominate the market due to their therapeutic benefits without the psychoactive effects. This preference for non-psychoactive compounds aligns perfectly with InMed's strategy of developing pharmaceutical-grade, non-addictive drug candidates.

Physician education barriers still exist regarding novel cannabinoid therapeutic mechanisms

Here's the quick math on your biggest headwind: public acceptance is high, but prescriber confidence is low. A scoping review published in May 2025, which analyzed 41 studies on healthcare provider attitudes, found that most US physicians feel inadequately prepared to counsel patients on medical cannabis. This knowledge gap is a significant barrier to the adoption of novel cannabinoid therapeutics, even pharmaceutical-grade ones like InMed is developing.

The lack of formal education in medical school curricula on the endocannabinoid system and cannabinoid drug interactions means that prescribers often lack the necessary framework for evidence-based recommendations. For instance, in end-of-life care, fewer than half of palliative care and hospice physicians reported recommending medical cannabis, despite most acknowledging its potential benefit. To overcome this, InMed must invest heavily in clinical education programs targeting specialists like neurologists and dermatologists, not just general practitioners.

• Physician knowledge gap is the main adoption bottleneck.
• Most healthcare providers feel unprepared to discuss CBMs.
• Lack of scientific research delays evidence-based guidelines.

Demographic shifts toward an aging population increase demand for chronic disease treatments

The aging US population is a powerful, long-term driver for InMed's pipeline, which includes INM-901 for Alzheimer's disease and INM-089 for dry Age-related Macular Degeneration (AMD). The population aged 65 and older is projected to grow by almost 3% annually through 2030, a rate that far outpaces other age groups. This demographic shift directly translates to a surge in chronic, age-related conditions.

In 2023, approximately 93% of adults aged 65 and older had at least one chronic condition, with nearly 79% living with multiple chronic conditions (multi-morbidity). The US chronic disease management market is projected to reach $4.67 Billion by 2033, exhibiting a CAGR of 12.64% from 2025-2033. Your focus on neuroinflammation and neuroprotection for diseases like Alzheimer's, which is a leading cause of death, places InMed squarely in a high-demand, high-unmet-need segment of the market.

InMed Pharmaceuticals Inc. (INM) - PESTLE Analysis: Technological factors

The technological landscape for InMed Pharmaceuticals Inc. is a double-edged sword: their core competency in rare cannabinoids is a major opportunity, but the rapid acceleration of synthetic biology and Artificial Intelligence (AI) in drug discovery creates intense competitive pressure. The company must leverage its proprietary manufacturing and delivery systems to stay ahead, especially with R&D expenses at only $2.9 million for fiscal year 2025, a decrease from $3.2 million in 2024.

Advancements in synthetic cannabinoid production (e.g., biosynthesis) lower manufacturing costs

The shift to synthetic cannabinoid production, particularly biosynthesis (using engineered microbes like yeast or bacteria to produce compounds), is a critical cost-reducer for the entire industry. This is a massive market, with the global Biosynthesis of Cannabinoids Market projected to reach $212.47 million in 2025. This technology is a threat to traditional plant-based extraction, but InMed Pharmaceuticals Inc. has its own proprietary biotransformation process, IntegraSyn™, which is a key asset.

Here's the quick math on why this matters:

• Biosynthesis can lower the production cost of pure cannabinoids to less than $1,000 per kg, a sharp drop from the $4,000+ per kg wholesale price for plant-extracted CBD in 2020.
• The process is significantly faster, producing cannabinoids up to 10 times faster than conventional plant extraction.
• InMed Pharmaceuticals Inc.'s IntegraSyn™ process has achieved a cannabinoid yield of 5 g/L, demonstrating their focus on process optimization to capture a piece of the rare cannabinoid biosynthesis market, which is projected to be $25 billion by 2025.

If they can't keep their manufacturing costs competitive with the best-in-class biosynthesis platforms, their commercial subsidiary, BayMedica, will face significant gross margin pressure, even with its fiscal year 2025 revenue of $4.9 million.

Development of specialized drug delivery systems for topical and ocular administration (e.g., INM-755, INM-088)

InMed Pharmaceuticals Inc.'s strategy relies heavily on specialized delivery systems to maximize the therapeutic effect of their rare cannabinoid, Cannabinol (CBN), while minimizing systemic side effects. Their lead candidates, INM-755 and INM-088 (now INM-089), demonstrate this focus.

INM-755, a CBN-based topical cream for Epidermolysis Bullosa (EB), is designed for direct application to the skin, which helps avoid the side effects associated with oral ingestion. For their ocular program, the company has strategically shifted from the INM-088 eye drop formulation for glaucoma to INM-089 for dry Age-related Macular Degeneration (AMD). This move is critical because they selected an intravitreal formulation for INM-089, which means an injection directly into the eye's vitreous humor.

This is a smart move, but the competition is moving fast. Novel ocular drug delivery systems are emerging, like the new technology that can deliver glaucoma medication for seven weeks with a single injection, a 200-fold increase in duration over standard eye drops. InMed Pharmaceuticals Inc. needs to defintely ensure their proprietary delivery systems are competitive with these long-acting, advanced technologies.

Use of Artificial Intelligence (AI) to accelerate target identification and clinical trial design

AI is transforming the pharmaceutical pipeline, and companies not adopting it risk being left behind. The global AI in Drug Discovery market is a massive tailwind, valued at $6.93 billion in 2025. The technology's impact is staggering: AI can reduce the time to develop new drugs from 5-6 years to potentially just one year.

For a small-cap biotech like InMed Pharmaceuticals Inc., with a net loss of $8.2 million in fiscal year 2025, using AI is not optional; it's a way to stretch their $11.1 million cash position further. AI can streamline the process in two key areas:

• Drug Discovery: AI maps molecular interactions and predicts compound efficacy, which is vital for identifying novel cannabinoid targets. In fact, 30% of new drugs are expected to be AI-discovered this year.
• Clinical Trials: AI-driven tools are now FDA-cleared and can reduce scoring labor costs and quality-control expenses by 80-90%, while accelerating data-processing speed by more than 70%.

InMed Pharmaceuticals Inc. must either invest in internal AI capabilities or, more realistically, form strategic partnerships with AI platforms to accelerate their preclinical programs like INM-901 for Alzheimer's disease.

Competition from large pharmaceutical companies investing in novel compound screening platforms

The biggest technological risk comes from the sheer scale of investment by large pharmaceutical companies (Big Pharma). These giants are not just sitting still; they are pouring money into next-generation R&D infrastructure.

Big Pharma is planning to nearly double their investment in lab transformation and novel screening platforms by 2025, committing up to 7% of their revenue to these initiatives. This translates to billions of dollars being funneled into high-throughput screening (HTS) and AI-enabled platforms that can screen millions of compounds against disease targets faster than ever before.

The global Drug Discovery Platforms Market is estimated to be valued at $211.3 million in 2025, with North America holding a 39.3% market share. This investment means Big Pharma can rapidly identify and optimize novel small molecules, potentially finding non-cannabinoid alternatives that target the same pathways as InMed Pharmaceuticals Inc.'s drugs, but with better intellectual property protection and lower development risk.

The clear action is for InMed Pharmaceuticals Inc. to focus its limited R&D budget on their proprietary drug delivery systems and rare cannabinoid analogs, where the competition has a higher barrier to entry, and secure a major partnership to fund the next phase of clinical trials.

InMed Pharmaceuticals Inc. (INM) - PESTLE Analysis: Legal factors

Complex, multi-jurisdictional intellectual property (IP) protection for novel cannabinoid analogs.

You're in the pharmaceutical space, and that means your intellectual property (IP) portfolio is the core asset. For InMed Pharmaceuticals, protecting those novel cannabinoid analogs across multiple countries is a massive, ongoing legal effort. The challenge isn't just filing patents; it's navigating the different legal systems to ensure long-term exclusivity on your drug candidates like INM-901 and INM-089.

As of fiscal year 2025, InMed's IP strategy is clearly focused on expansion. The company holds a total of 14 patent families covering new chemical entities, formulations, manufacturing processes, and methods of use. A key 2025 milestone was the granting of an international Patent Cooperation Treaty (PCT) patent in Mexico (Patent No. 417531) for their novel small-molecule compounds, securing a 20-year term of protection in that jurisdiction. That same PCT application is now pending in critical markets like the U.S., Europe, and Japan. This multi-jurisdictional approach is defintely necessary, but it drives up legal costs.

Here's the quick math on the legal investment: General and administrative (G&A) expenses for the fiscal year ended June 30, 2025, rose to $6.6 million, up from $5.8 million in the prior year, with the increase partially attributed to higher legal expenses. You must accept that this cost of IP defense is the price of entry for a novel drug developer.

Strict Food and Drug Administration (FDA) and Health Canada requirements for new drug applications (NDAs).

The regulatory path for a cannabinoid-based drug is inherently more complex than for a non-controlled substance. InMed's drug candidates, which target the CB1/CB2 receptors, are subject to the stringent requirements of the FDA in the U.S. and Health Canada in its home country, particularly the New Drug Application (NDA) process.

The current focus is on advancing INM-901 (Alzheimer's candidate) through preclinical studies and preparing for a crucial pre-Investigational New Drug (IND) meeting with the FDA, a necessary step before human clinical trials can begin in the U.S. What makes this legally demanding is the controlled substance classification of cannabinoids. Any NDA must include a detailed description and analysis of the drug's potential for abuse, plus a proposal for its scheduling under the Controlled Substances Act. This adds a layer of regulatory scrutiny that can delay timelines and significantly increase the cost of compliance and data generation.

Varying international regulations on the import and export of controlled substances for research.

Since InMed is a Canadian-based company (British Columbia) with global development programs, moving its cannabinoid drug substance for manufacturing, preclinical testing, and clinical trials across borders is a constant legal hurdle. These compounds are controlled substances, so you can't just ship them like a standard chemical.

The company must comply with the U.S. Drug Enforcement Administration (DEA) and international treaties like the 1961 UN Single Convention on Narcotic Drugs. This means:

• Registering with the DEA as an importer for the specific substance and schedule.
• Obtaining a DEA permit (like DEA Form 161 or 357) for each import of a Schedule I or II controlled substance, or filing a declaration (DEA Form 236) for non-narcotic Schedule III, IV, or V substances.
• Restricting the quantity of imports to only that necessary for medical or scientific uses, which is a key DEA mandate.

The lack of harmonized global regulations for controlled substances means InMed must maintain separate, specialized legal and logistics teams to manage compliance for every country where it conducts research or manufacturing, like the Netherlands where it previously filed a Clinical Trial Application (CTA) for INM-755.

Increased scrutiny on clinical trial data integrity and patient consent processes.

The legal and regulatory environment is increasingly unforgiving on data integrity, especially following the full enforcement of the Drug Supply Chain Security Act (DSCSA) in the U.S. by 2025. While DSCSA primarily targets commercial supply chains, the underlying principle-full traceability and verifiable data-applies to all pharmaceutical operations, including clinical trials.

For InMed, this means the data from its preclinical studies (like the positive neuroinflammation data for INM-901 presented at AAIC 2025) and future human trials must be impeccable and auditable. Regulators are also tightening rules around patient consent, ensuring it is truly informed and that patient data privacy (HIPAA in the U.S.) is rigorously protected. Failure in data integrity or consent can lead to a complete rejection of an NDA, nullifying years of R&D investment.

Here is a summary of the immediate legal risks and compliance requirements:

Finance: Ensure the $6.6 million G&A budget for FY2025 includes sufficient allocation for external counsel to manage the upcoming FDA pre-IND and international IP filings.

InMed Pharmaceuticals Inc. (INM) - PESTLE Analysis: Environmental factors

Here's the quick math: With a focus on rare diseases and a novel drug class, InMed Pharmaceuticals Inc. (INM) is a high-risk, high-reward play. The biggest near-term action is tracking their Phase II data readouts and their cash burn rate, which needs to be managed tightly against a reported net loss of $8.2 million for the 2025 fiscal year. What this estimate hides is the potential for a major licensing deal or partnership, which could instantly change the economic picture. Still, until then, cash is king.

Sustainability mandates for reducing chemical waste in pharmaceutical manufacturing processes.

InMed Pharmaceuticals Inc.'s primary environmental exposure here is through its wholly-owned subsidiary, BayMedica, which handles the commercialization and manufacturing of rare cannabinoids. While the core pharmaceutical segment is in preclinical and clinical development, BayMedica's synthetic biology and chemical processes create a direct environmental footprint. The broader pharmaceutical industry is under pressure, with major companies spending an estimated $5.2 billion annually on environmental programs, a 300% jump since 2020.

For a smaller operation like BayMedica, the risk is less about sheer volume and more about compliance with the accelerating trend toward Green Chemistry principles. This means replacing toxic solvents with safer alternatives and adopting closed-loop systems to recycle waste. The challenge is that the cost of implementing these cleaner production techniques requires substantial upfront investment, which can squeeze the margins of a business unit like BayMedica that generated sales of $4.9 million in fiscal year 2025.

• Adopt solvent recycling to cut hazardous waste.
• Audit third-party manufacturers for waste protocols.
• Prioritize biodegradable materials in packaging.

Ethical considerations and regulatory oversight of animal testing in preclinical research.

This is a critical, near-term environmental and ethical factor for InMed Pharmaceuticals Inc. The company is actively conducting preclinical studies, such as the successful pharmacokinetic (PK) studies for INM-901 in large animal models, announced in November 2025. This practice runs directly into a major regulatory shift. The FDA Modernization Act 2.0 (2022) and the subsequent FDA Roadmap announced in April 2025 outline a 3-to-5-year plan to make animal studies the exception, not the rule, for Investigational New Drug (IND) submissions.

The ethical burden of animal testing is being replaced by New Approach Methodologies (NAMs), such as organ-on-a-chip systems and advanced computational modeling. The pressure is on InMed Pharmaceuticals Inc. to quickly transition its preclinical strategy for candidates like INM-901 and INM-089 to NAMs to streamline future IND filings and avoid public relations risk. Honestly, relying on traditional animal models for a new drug candidate in 2025 is defintely a strategic liability.

Need for robust supply chain auditing to ensure environmentally sound sourcing of raw materials.

The supply chain is where 75% to 90% of a pharmaceutical company's environmental footprint lies, primarily due to Scope 3 emissions from third-party suppliers. For InMed Pharmaceuticals Inc., this means auditing the sourcing for both the pharmaceutical pipeline's Active Pharmaceutical Ingredients (APIs) and the raw materials used by the BayMedica commercial segment.

The current market demands a proactive, integrated ESG focus in the supply chain. Without a public Environmental, Social, and Governance (ESG) report detailing supply chain audits, InMed Pharmaceuticals Inc. faces a transparency gap. Investors and partners now look for standardized certifications and evidence of decarbonization plans from suppliers. Here's the quick math on the pressure points:

Energy consumption of large-scale synthetic biology and lab operations.

The pharmaceutical synthesis process is one of the most energy-intensive sectors in the chemical industry, accounting for approximately 20% of overall industrial energy use. Even though InMed Pharmaceuticals Inc. is a small-cap biotech, their research and development activities, which cost $2.9 million in fiscal year 2025, involve energy-intensive lab and synthetic biology operations.

The energy consumption of their labs, especially for climate-controlled storage, ventilation, and high-powered analytical equipment, represents a non-trivial part of their operational cost. The opportunity here is to reduce costs by adopting energy-efficient designs and renewable energy sources. Companies that master sustainable practices, like cutting water usage by 40% through advanced recycling, see up to 15% lower production costs. So, optimizing energy use isn't just an environmental win; it's a direct path to better cash management.