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

Core Viewpoint - InMed Pharmaceuticals Inc. is winding down the commercial operations of its subsidiary BayMedica LLC due to regulatory uncertainties surrounding U.S. federal legislation, specifically H.R. 5371, which could negatively impact BayMedica's business [2][5]. Group 1: Legislative Impact - H.R. 5371, if enacted without amendments, will materially affect BayMedica by prohibiting certain aspects of its commercial business and inventory of rare cannabinoids [2]. - The Act is set to take effect on November 12, 2026, which has prompted the decision to wind down operations [2]. Group 2: Operational Changes - The Board of InMed approved BayMedica's decision to exit its commercial operations, with plans to complete this process before the end of the fiscal year on June 30, 2026 [3]. - During the wind-down period, BayMedica will continue limited commercial activities, including sales and marketing [3]. Group 3: Financial Implications - The wind-down is expected to incur approximately $550,000 in severance and related employee costs, with an additional $120,000 in expenditures anticipated through the end of the fiscal year [6]. - These costs may be partially offset by profits from the sale of BayMedica's products [6]. Group 4: Future Focus - Post wind-down, InMed will concentrate on advancing its core drug development programs, including INM-901 for Alzheimer's disease and INM-089 for dry age-related macular degeneration [4]. - The company plans to provide updates on its pharmaceutical pipeline to shareholders in the near term [4].