InMed Pharmaceuticals Reports Full Year Fiscal 2020 Financial Results and Provides Business Update
VANCOUVER, BC, Sept. 8, 2020 /PRNewswire/ - InMed Pharmaceuticals Inc. ("InMed" or the "Company") (TSX:IN; OTCQX:IMLFF), a clinical-stage pharmaceutical company developing medications targeting diseases with high unmet medical need and leading the way in the clinical development of cannabinol ("CBN"), today reported financial results for the fiscal year ended June 30, 2020.
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The Company's full financial statements and related MD&A for the fiscal year ended June 30, 2020 are available at www.inmedpharma.com and at www.sedar.com.
Research & Development Update:
-- INM-755 for the treatment of epidermolysis bullosa ("EB"). On April 30,
2020, InMed announced it had received regulatory and ethics board
approval of its Clinical Trial Application ("CTA") to conduct a second
Phase 1 trial (755-102-HV) with INM-755 skin cream on healthy volunteers
with induced epidermal wounds. On July 7, 2020, the 755-102 trial
enrolled the first patient at the Centre for Human Drug Research in the
Netherlands, where two strengths of INM-755 cream are being evaluated in
8 adult subjects over a 14-day treatment period. Final results from the
first Phase 1 trial (755-101-HV) trial are anticipated to be announced
later this month and final results from 755-102 are expected in the
fourth calendar quarter of 2020.
-- INM-088 for the treatment of glaucoma. On May 27, 2020, InMed released
top-line preclinical data demonstrating the relative and overall
neuroprotective effects of cannabinol in preclinical models of glaucoma.
This data demonstrated cannabinol could not only help relieve
intraocular pressure, a hallmark symptom of glaucoma, but could also
help prevent the death of retinal ganglion cells ("RGCs"), which are the
nerve cells characteristically damaged as the disease progresses,
leading to vision loss. These compelling in vivo and in vitro
preclinical results formed a large part of a patent filed on May 12,
2020 entitled "Compositions and Methods for Use of Cannabinoids for
Neuroprotection". InMed's efforts are now focused on the work necessary
to combine INM-088 with the delivery technology to be used in
IND-enabling preclinical toxicology studies which the Company continues
to anticipate commencement in the second half of calendar 2020.
-- IntegraSyn(TM). On June 24, 2020, InMed introduced IntegraSyn(TM), the
Company's new approach to producing pharmaceutical-grade cannabinoids.
IntegraSyn(TM) integrates biosynthesis with other traditional drug
manufacturing methods with the goal of improving production of low-cost,
high quality cannabinoids. InMed is working with industry-leading
contract developing and manufacturing organizations, including the Almac
Group, to generate proprietary, high efficiency enzymes for flexible
application in downstream cannabinoid assembly.
Results of Operations (expressed in Canadian Dollars):
-- On June 30, 2020, the Company announced the completion of a reverse
share split whereby, in conjunction with its application to list its
common shares on the Nasdaq Stock Market ("Nasdaq"), the Company
completed the consolidation of its issued and outstanding common shares
on the basis of thirty-three (33) pre-consolidation common shares for
one (1) post-consolidation common share (the "Consolidation"). The per
share data in this release reflects that Consolidation.
-- For the year ended June 30, 2020, the Company recorded a net loss of
$11.9 million, or $2.27 per share, compared with a net loss of $13.3
million, or $2.56 share, for the year ended June 30, 2019.
-- Research and development expenses were $7.1 million for the year ended
June 30, 2020, compared with $5.6 million for the year ended June 30,
2019. The increase of $1.5 million year-on-year was primarily due to
increased spending on external contractors, largely related to advancing
the INM-755 program into the clinic. In addition, the Company incurred
increased salaries and benefits commensurate with the increase in
research and development activities.
-- The Company incurred general and administrative expenses of $3.5 million
for the year ended June 30, 2020, compared with $3.8 million for the
year ended June 30, 2019. This 7% decrease year-on-year was the result
of certain expenditures decreasing, including legal, accounting and
investor relations and marketing related cost, offset by certain other
costs that increased in the current year including salaries and benefits
and office related expenses. Adjusting for the deferral of certain
financing related expenditures totaling $0.4 million, general and
administrative expenses were relatively constant year-on-year.
-- The Company also incurred non-cash, share-based payments, in connection
with the grant of stock options, of $1.3 million in the year ended June
30, 2020, compared with $4.1 million for the year ended June 30, 2019.
-- At June 30, 2020, the Company's cash, cash equivalents and short-term
investments were $8.0 million, which compares to $18.0 million at June
30, 2109 and $9.9 million at the end of the previous quarter, March 31,
2020. The decrease in cash, cash equivalents and short-term investments
during the year ended June 30, 2020, was primarily due to cash outflows
from operating activities.
Table 1: Consolidated statements of financial position:
InMed Pharmaceuticals
Inc.
CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION
As at June 30, 2020 and
June 30, 2019
Expressed in Canadian
Dollars
---
June 30,
June 30,
2020 2019
ASSETS
Current
Cash and cash
equivalents $
7,912,156 $
12,873,961
Short-term investments 57,761 5,165,093
Accounts receivable 61,794 84,987
Prepaids and other
assets 570,905 424,275
Total current assets 8,602,616 18,548,316
Non-Current
Property and equipment 549,869 55,829
Intangible assets 1,091,642 1,184,720
---
Total Assets $
10,244,127 $
19,788,865
===
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current
Accounts payables and
accrued liabilities $
2,190,432 $
1,562,865
Current portion of lease
obligations 93,986
---
Total current
liabilities 2,284,418 1,562,865
Non-current
Lease obligations 337,989
---
2,622,407 1,562,865
SHAREHOLDERS' EQUITY
Share capital 68,579,890 68,579,890
Contributed surplus 15,468,817 14,216,224
Accumulated deficit (76,426,987) (64,570,114)
---
7,621,720 18,226,000
$
10,244,127 $
19,788,865
Table 2: Consolidated statements of operations and comprehensive loss:
InMed Pharmaceuticals Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the year ended June 30, 2020 and
2019
Expressed in Canadian Dollars
---
Year Ended
June 30
2020 2019
Operating Expenses
Research and development $
7,104,932 $
5,638,619
General and administrative 3,533,014 3,797,867
Amortization and depreciation 221,218 124,344
Share-based payments 1,252,593 4,083,157
---
Total operating expenses 12,111,757 13,643,987
Finance Costs and Other Income (Loss)
Interest expense on lease obligations (25,426)
Interest income 171,934 433,803
Foreign exchange gain (loss) 108,376 (44,858)
---
Total net and comprehensive
loss for the period $
(11,856,873) $
(13,255,042)
--- ---
Basic and diluted loss per
share for the period $
(2.27) $
(2.56)
=== ===
Table 3: Consolidated statements of cash flows:
InMed Pharmaceuticals Inc.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
For the year ended June 30,
2020 and 2019
Expressed in Canadian
Dollars
---
2020 2019
OPERATING ACTIVITIES
Cash flows from operating
activities
Net loss for the period $
(11,856,873) $
(13,255,042)
Adjustments to reconcile
loss to net cash used in
operating activities
Amortization and
depreciation 221,218 124,344
Share-based payments 1,252,593 4,083,157
Loss on sale of assets 3,097
Interest accretion on lease
obligations 25,426
Changes in non-cash
working capital balances:
Prepaids and other assets (170,953) (220,798)
Interest income accrued on
short-term investments 107,332 (93,726)
Accounts receivable 23,193 (31,614)
Accounts payable and
accrued liabilities 627,567 625,106
---
Total cash used in
operating activities (9,767,400) (8,768,573)
---
Cash Flows From Investing
Activities
Maturity of short-term
investments 5,057,500 4,628,750
Purchase of short-term
investments (57,500) (7,357,502)
Purchase of property and
equipment (57,163) (35,491)
Proceeds on disposal of
property and equipment 726
---
Total cash provided by
(used in) investing
activities 4,943,563 (2,764,243)
---
Cash Flows From Financing
Activities
Payments on lease
obligations (97,375)
Shares issued for cash 272,500
Deferred financing costs (40,593)
Total cash provided by
(used in) financing (137,968) 272,500
activities
---
Decrease in cash during the
period (4,961,805) (11,260,316)
Cash and cash equivalents
beginning of the period 12,873,961 24,134,277
---
Cash and cash equivalents
end of the period $
7,912,156 $
12,873,961
===
About InMed: InMed Pharmaceuticals is a clinical-stage pharmaceutical company developing a pipeline of cannabinoid-based medications, initially focused on the therapeutic benefits of cannabinol ("CBN") in diseases with high unmet medical need. The Company is dedicated to delivering new therapeutic alternatives to patients that may benefit from cannabinoid-based medicines. For more information, visit www.inmedpharma.com.
About Cannabinol (CBN): CBN is a rare cannabinoid with unique physiological properties that may result in distinct therapeutic and safety characteristics relative to the more commonly known cannabinoids tetrahydrocannabinol (THC) and cannabidiol (CBD). InMed Pharmaceuticals is exploring the therapeutic potential of CBN in diseases with high unmet medical need.
About INM-755: INM-755 is a CBN cream intended as a topical therapy to treat epidermolysis bullosa ("EB") and potentially other dermatological diseases. Preclinical data demonstrate that INM-755 may help relieve hallmark EB symptoms, such as inflammation and pain, as well potentially restore the integrity of the skin in a subset of EB Simplex patients.
About Epidermolysis Bullosa (EB): EB is the collective name of a group of genetic disorders of characterized by fragile skin and mucous membranes that are easily damaged, leading to extensive blistering and wounding. The blisters may appear in response to minor injury, even from heat, rubbing, scratching or adhesive tape. The disease has no approved cure and most current treatments are directed towards symptomatic relief.
About INM-088: InMed is developing INM-088 as a cannabinol (CBN) eye drop formulation targeting reduction of the intraocular pressure associated with glaucoma as well as being designed to serve as a neuroprotectant to the retinal ganglion cells (RGC) and the optic nerve.
About Glaucoma: Glaucoma is a group of eye conditions characterized by abnormally high pressure in the eye, which can damage the membranes of the retina and the head of the optic nerve, leading to blindness. Glaucoma is the second leading cause of blindness worldwide and can occur at any age but is more common in older adults.
About IntegraSyn(TM): IntegraSyn(TM) is InMed's integrated cannabinoid manufacturing system designed to efficiently and economically produce pharmaceutical-grade, bio-identical cannabinoids. The scalable and flexible IntegraSyn(TM) manufacturing system integrates multiple commercially proven methods to efficiently produce cannabinoids utilizing cost-effective processes.
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. Forward-looking information in this news release includes statements about: leading the way in the clinical development of cannabinol ("CBN"); developing a pipeline of cannabinoid-based medications in diseases with high unmet medical need; delivering new therapeutic alternatives to patients that may benefit from cannabinoid-based medicines; leading the clinical development of cannabinol as a potential therapeutic option for skin and ocular diseases; evaluation and treatment period of the 755-102 trial at the Centre for Human Drug Research in the Netherlands; announcement of the final results from the first Phase 1 trial (755-101-HV) trial and timing of the final results from 755-102; selecting a final delivery technology and conducting additional in vivo studies for the INM-088 program; commencing IND-enabling preclinical toxicology studies in the second half of calendar 2020 for INM-088; developing innovative methods for low-cost, high yield and pharmaceutical-grade cannabinoid manufacturing; INM-088 reducing intraocular pressure and acting as a neuroprotectant to the retinal ganglion cells and optic nerve; INM-755 potentially relieving EB symptoms, such as inflammation and pain as well as potentially enhancing skin integrity in a subset of EB Simplex patients; and developing a proprietary biosynthesis manufacturing technology for the production of pharmaceutical-grade cannabinoids as well as a pipeline of medications targeting diseases with high unmet medical needs.
With respect to the forward-looking information contained in this news release, InMed has made numerous assumptions regarding, among other things: continued and timely positive preclinical and clinical efficacy data; the speed of regulatory approvals; the ability to contract with suitable partners; demand for InMed's products; 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. Known risk factors include, among others: the outbreak and impact of COVID-19 may worsen; preclinical and clinical testing may not produce the desired results on a timely basis, or at all; regulatory applications may not be approved on a timely basis, or at all; cannabis licensing/importing issues may delay our projected development timelines; suitable partners may not be located; economic or market conditions may worsen; our existing cash runway may not allow us to complete our forthcoming significant milestones; the development of a proprietary biosynthesis manufacturing technology for the production of pharmaceutical-grade cannabinoids as well as a pipeline of medications targeting diseases with high unmet medical needs may not be as successful as desired, if at all. A more complete discussion of the risks and uncertainties facing InMed is disclosed in InMed's most recent Annual Information Form and other continuous disclosure filed with Canadian securities regulatory authorities on SEDAR at www.sedar.com.
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.
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SOURCE InMed Pharmaceuticals Inc.
