InMed Pharmaceuticals Inc. (INM): 5 FORCES Analysis [Nov-2025 Updated]

You're looking at InMed Pharmaceuticals Inc. (INM) and need to know if their pipeline can cut through the noise, so let's get straight to the competitive reality as of late 2025. Honestly, the picture is complex: while the company holds valuable IP, the market is tough; with only $11.1 million in cash after posting an $8.2 million net loss in FY2025 on just $4.94 million in revenue, every competitive force matters. We see high supplier power for specialized APIs and intense rivalry against pharma giants, meaning InMed's ability to manage its $2.9 million in R&D spend against customer pricing pressure is the real test. Dive into the full Five Forces breakdown below to see exactly where the pressure points are for this small-cap biotech.

InMed Pharmaceuticals Inc. (INM) - Porter's Five Forces: Bargaining power of suppliers

When you look at InMed Pharmaceuticals Inc.'s supplier landscape, you see a classic biotech dynamic: high dependency on specialized, high-quality external expertise, which naturally pushes supplier power up. This is especially true when you're trying to bring a novel drug candidate through the pipeline.

Specialized Contract Manufacturing Organizations (CMOs) hold high power for GMP-grade Active Pharmaceutical Ingredients (API). For InMed Pharmaceuticals Inc., securing cost-efficient, Good Manufacturing Practice (GMP)-grade APIs for its cannabinoid-based drug candidates is non-negotiable for clinical progression. The engagement with Almac Group, for instance, focuses on optimizing both upstream assembly and downstream purification to achieve these exact GMP-grade materials. When a supplier like Almac has the established infrastructure and regulatory track record for this specialized manufacturing, their leverage in negotiations over timelines and pricing is significant.

Dependence on niche R&D partners (e.g., EyeCRO) for proprietary drug delivery technology creates another point of supplier leverage. InMed Pharmaceuticals Inc. secured an exclusive, worldwide license from EyeCRO for its Microemulsion Drug Ocular Penetration System, or MiDROPS®, technology. This platform is key for the delivery of cannabinoids, particularly for INM-089 targeting dry Age-related Macular Degeneration. The exclusivity of this technology means InMed Pharmaceuticals Inc. cannot easily switch; the supplier holds considerable power because they control access to a critical component of the drug delivery mechanism.

BayMedica's internal manufacturing know-how mitigates raw material supplier power, at least in the commercial segment. InMed Pharmaceuticals Inc. is actively developing proprietary manufacturing approaches, such as the IntegraSyn approach to cannabinoid manufacturing. The company believes these internal methods will result in commercially viable yields and represent a significant improvement over existing platforms. Success here could reduce reliance on external suppliers for the rare cannabinoids sold through the BayMedica segment, which posted sales of $4.9 million in fiscal year 2025.

High reliance on capital markets for funding operations, given the $8.2 million net loss in FY2025, directly impacts how InMed Pharmaceuticals Inc. must manage supplier relationships. When you are operating at a loss, cash management becomes paramount, and suppliers know that. The need to preserve capital means InMed Pharmaceuticals Inc. must be cautious about large upfront payments or unfavorable terms, yet the need to keep R&D moving-which was $2.9 million in FY2025-forces compliance with supplier demands to avoid delays. The cash position as of June 30, 2025, was $11.1 million, which the company expects will fund operations into the fourth quarter of calendar year 2026.

Here's a quick look at the financial context driving this cash management pressure:

The power dynamic with key external partners can be summarized by their roles:

• CMOs for GMP-grade API: High power due to specialized, regulated manufacturing needs.
• Niche Tech Partners (EyeCRO): High power due to exclusive, proprietary delivery technology (MiDROPS®).
• Internal Know-how (BayMedica/IntegraSyn): Mitigates power for raw material suppliers in the commercial segment.
• Funding Status: Cash runway to Q4 2026 constrains negotiation flexibility.

Finance: draft 13-week cash view by Friday.

InMed Pharmaceuticals Inc. (INM) - Porter's Five Forces: Bargaining power of customers

You're looking at InMed Pharmaceuticals Inc. (INM) and trying to figure out how much sway their customers have across their two distinct business lines. It's not a simple answer, because the power dynamic is very different for the rare cannabinoid sales versus the future prescription drug sales.

For the BayMedica B2B customers buying bulk rare cannabinoids, the power is quite high. These customers operate in a market where InMed Pharmaceuticals Inc. (INM) is not the sole supplier. We saw this pressure directly impact profitability. For the three months ended March 31, 2025, BayMedica's commercial business brought in revenues of $1.26 million, which was an 8% increase year-over-year. However, the CEO noted that gross margins were hit by increased pricing pressure. To be fair, this isn't a new issue; for the quarter ending December 31, 2024, BayMedica revenue actually dropped 10% to $1.1 million, which was explicitly tied to negative pricing variance.

This dynamic shows that pricing adjustments in the commercial segment reflect real customer pressure, which naturally causes revenue volatility for InMed Pharmaceuticals Inc. (INM). The full fiscal year 2025 saw BayMedica sales reach $4.9 million, an 8% increase over the prior year, but the constant need to compete on price keeps customer power elevated in this segment.

Now, let's pivot to the future pharmaceutical customers-the payers and healthcare providers (HCPs) who will ultimately decide on prescription uptake for INM-901 (Alzheimer's disease) and INM-089 (dry AMD). Their power is currently lower but will ramp up significantly upon market entry. These future customers will demand superior clinical data over existing therapies because they are paying for efficacy and safety. InMed Pharmaceuticals Inc. (INM) is trying to preempt this by focusing on novel mechanisms. For INM-901, the data highlights a reduction in neuroinflammation independent of the traditional amyloid beta or tau targets.

The high unmet medical need in target diseases like Alzheimer's disease (AD) slightly reduces the bargaining power of these future customers upon market entry, but only if the data is compelling. The company continues to emphasize the major unmet medical need for AD. If INM-901 can demonstrate a truly differentiated, disease-modifying effect, that clinical leverage will be the primary counterweight to payer scrutiny.

Here's a quick look at the financial context surrounding these revenue streams as of late 2025:

The customer power in the commercial segment is clearly price-driven, while the pharmaceutical segment's customer power hinges entirely on clinical differentiation. You can see the strain this puts on the bottom line:

• Gross margin declined due to competitive pricing pressures.
• R&D expenses were $0.91 million for Q3 FY2025, up from $0.65 million the prior year.
• The company expects cash to fund operations into Q4 calendar year 2026 based on the June 30, 2025, cash position.
• INM-901 preclinical studies showed positive behavioral outcomes in the 5xFAD model.

What this estimate hides is the inherent risk that even superior preclinical data for INM-901 might not translate into the statistically significant superiority required to overcome established standard-of-care inertia with payers.

Finance: review the Q4 FY2025 cash burn rate against the June 30, 2025, cash balance by next Tuesday.

InMed Pharmaceuticals Inc. (INM) - Porter's Five Forces: Competitive rivalry

You're looking at the competitive rivalry force for InMed Pharmaceuticals Inc. (INM), and honestly, the picture is one of a small player against giants in the therapeutic development space. The rivalry is intense in both the Alzheimer's disease (AD) and dry Age-related Macular Degeneration (AMD) drug development arenas, where InMed Pharmaceuticals Inc. competes against large, well-funded pharmaceutical corporations. This scale disparity is stark when you look at the top-line numbers for InMed Pharmaceuticals Inc.

The company's low revenue base of $\mathbf{\$4.94 \text{ million}}$ for the fiscal year ending June 30, 2025, immediately highlights its vulnerability when facing competitors with significantly larger financial war chests. This revenue primarily comes from the BayMedica commercial segment, which deals in rare cannabinoid ingredients, a market that is itself high-stakes and head-to-head. For instance, in the third quarter of fiscal 2025, gross margins for BayMedica were impacted by increased pricing pressure, showing the immediate competitive squeeze in that commercial vertical.

The R&D investment required to push candidates like INM-901 for AD and INM-089 for AMD through clinical trials creates substantial sunk costs, which act as high exit barriers. For the fiscal year 2025, InMed Pharmaceuticals Inc. reported Research and Development expenses of $\mathbf{\$2.9 \text{ million}}$. If a program stalls, that capital is essentially locked in, making the decision to pivot or stop much harder than for a company with a more flexible capital structure.

To give you a clearer picture of the financial context shaping this rivalry, here are the key figures from the fiscal year 2025 report for InMed Pharmaceuticals Inc. as of June 30, 2025:

This cash position of $\mathbf{\$11.1 \text{ million}}$ as of June 30, 2025, is expected to fund operations into the fourth quarter of calendar year 2026, but advancing the pharmaceutical pipeline will require significant future R&D spending increases. The competition is not just about the science; it's about the sustained financial capacity to reach the next milestone.

The competitive pressures InMed Pharmaceuticals Inc. faces can be summarized by these factors:

• Rivalry in AD/AMD is against large, well-funded pharma firms.
• BayMedica faces pricing pressure in the rare cannabinoid market.
• R&D spending of $\mathbf{\$2.9 \text{ million}}$ in FY2025 represents high sunk costs.
• The $\mathbf{\$4.94 \text{ million}}$ revenue base is small relative to industry scale.
• Cash runway is set to last into Q4 2026 based on current spending.

The path forward for InMed Pharmaceuticals Inc. demands navigating these competitive forces with precision, especially given the multi-pathway approach of INM-901, which is a differentiated, but unproven, strategy against established targets.

InMed Pharmaceuticals Inc. (INM) - Porter's Five Forces: Threat of substitutes

You're looking at the competitive landscape for InMed Pharmaceuticals Inc. (INM), and the threat of substitutes is a major factor, especially given the company's dual focus on novel pharmaceuticals and commercial cannabinoid ingredients. Honestly, in the pharma space, any approved drug that addresses the same indication is a direct threat, but the substitute landscape is broader here.

Existing, approved small-molecule and biologic drugs are ready substitutes for INM's pipeline candidates. For INM-901, targeting Alzheimer's disease (AD), the market is saturated with therapies focused on single mechanisms, primarily amyloid-beta or tau pathology. While INM-901 is designed with a multi-pathway approach, demonstrating reductions in neuroinflammation (like IFN-γ, TNF-α, IL-1β, KC-GRO, IL-2, and NfL) and partial restoration of MAP2 protein in preclinical models, any approved single-target drug that shows efficacy in Phase 3 or beyond poses a significant substitution risk. Similarly, for INM-755, the topical cream for Epidermolysis Bullosa (EB), existing symptomatic treatments, even if not curative, are substitutes that patients and physicians currently rely on.

Over-the-counter (OTC) supplements and non-pharmaceutical cannabinoid products substitute BayMedica's ingredients. BayMedica's commercial segment, which realized sales of $4.9M in fiscal year 2025, operates in a market where consumers often self-treat or seek wellness support outside of prescription pathways. The broader global pharmaceutical and OTC supplements market was valued at $336.76 billion in 2024 and is projected to hit $565.76 billion by 2032, growing at a CAGR of 6.70%. This massive, accessible market provides a ready, low-barrier substitute for consumers looking for general wellness or mild symptom management where BayMedica's ingredients might otherwise be considered.

New single-mechanism Alzheimer's drugs (e.g., anti-amyloid) are powerful substitutes for INM-901's multi-pathway approach. The industry has seen significant investment in these targeted therapies. INM-901's strength is its ability to modulate neuroinflammation and reduce amyloid-beta immunoreactivity in a dose-dependent manner, which management suggests is a differentiated approach. Still, if a single-mechanism drug gains broad regulatory approval and demonstrates superior or equivalent clinical benefit in human trials, it immediately becomes the standard of care, substituting the potential market for INM-901, regardless of its multi-target profile.

Completed Phase 2 program (INM-755) seeking partnership indicates market uncertainty over its competitive advantage. The Phase 2 trial for INM-755 in EB enrolled 19 patients, showing a positive indication for enhanced anti-itch activity versus the control cream. The fact that InMed Pharmaceuticals Inc. is now pursuing strategic partnership options suggests that, while the safety profile was excellent and there was a positive anti-itch indication, the data did not provide a strong enough standalone signal to immediately justify the massive capital outlay required for Phase 3 development and commercialization without a partner. This move to seek external validation or funding underscores the perceived competitive hurdle in the rare disease space.

Here's a quick look at the financial context surrounding these pipeline assets as of late 2025:

The threat from substitutes is multifaceted for InMed Pharmaceuticals Inc.:

• Existing approved drugs in AD and EB markets.
• The vast, accessible OTC/supplement market competing with BayMedica.
• The established focus of AD drug development on single targets like amyloid.
• The need for partnership for INM-755 post-Phase 2 exploration.

The company's current liquidity, approximately $9.3 million as of September 30, 2025, must be managed carefully to advance INM-901 through IND-enabling studies while the BayMedica segment generates about $1.12 million quarterly.

Finance: draft sensitivity analysis on cash burn rate if partnership for INM-755 is delayed past Q2 2026 by Friday.

InMed Pharmaceuticals Inc. (INM) - Porter's Five Forces: Threat of new entrants

You're looking at the barriers to entry for InMed Pharmaceuticals Inc. (INM) in late 2025, and for the pharmaceutical side of the business, those barriers are skyscraper-high. Honestly, setting up a competitor that can match the drug development track InMed is on requires deep pockets and a long time horizon.

The primary defense against new entrants in the drug space is the regulatory gauntlet. New entrants face the same, if not more, scrutiny from the U.S. Food and Drug Administration (FDA) for Investigational New Drug (IND) applications and subsequent clinical trials. InMed Pharmaceuticals Inc. is currently advancing its lead candidate, INM-901, through IND-enabling studies, a process that inherently requires significant, sustained capital and specialized expertise that a startup would need to replicate from scratch.

The company's proprietary intellectual property (IP) portfolio is a crucial moat. As of August 20, 2024, InMed Pharmaceuticals Inc.'s intellectual property portfolio comprised 13 patent families covering new chemical entities, formulations, manufacturing methods, and methods of use. Furthermore, InMed Pharmaceuticals Inc. expanded this protection by filing an additional international patent application under the Patent Cooperation Treaty (PCT) during fiscal 2025, specifically covering the composition and method of use for INM-901 in treating neurodegenerative diseases.

The financial hurdle is substantial for a pharma entrant, but InMed Pharmaceuticals Inc.'s current financial buffer is relatively small given the required investment. As of the fiscal year end on June 30, 2025, InMed Pharmaceuticals Inc. reported cash, cash equivalents, and short-term investments of $11.1 million. More recently, as of September 30, 2025, this figure stood at $9.3 million. Here's the quick math: the company posted a net loss of $8.2 million for the full fiscal year 2025. This burn rate means the $9.3 million cash position is expected to fund operations only into the fourth quarter of calendar year 2026. Any new entrant would need to secure similar, if not larger, funding rounds to survive the preclinical and early clinical phases.

Still, the threat level shifts dramatically when you look at the non-pharmaceutical rare cannabinoid ingredient space, where InMed Pharmaceuticals Inc. operates its BayMedica division. The financial barrier to entry here is definitely lower, as it involves manufacturing and sales rather than multi-year, multi-million dollar clinical trials. The BayMedica segment generated sales of $4.9 million for the fiscal year ended June 30, 2025.

We can map the financial realities of the pharmaceutical pipeline against the commercial segment to see the difference in capital intensity:

The threat of new entrants is therefore bifurcated. For the high-value, prescription drug candidates, the threat is low due to capital and regulatory requirements. For the lower-margin, health and wellness ingredient space, the threat is higher, though InMed Pharmaceuticals Inc. has established a commercial footprint.

Consider the key factors that deter new pharmaceutical competitors:

• Lengthy time to market for novel small molecules.
• Costly, multi-phase clinical trial requirements.
• Need for specialized regulatory affairs teams.
• Existing 13 patent families protecting core assets.

If onboarding takes 14+ days, churn risk rises, but for a new pharma entrant, the timeline is measured in years, not days. Finance: draft 13-week cash view by Friday.