InMed Pharmaceuticals(INM) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the six months ended December 31, 2021, the company recorded a net loss of approximately $7.3 million or $0.56 per share, compared to a net loss of $3.8 million or $0.68 per share for the same period in 2020, indicating an increase in net loss attributed to higher R&D spending [32][34] - R&D expenses for the six months were approximately $4 million, up from $1.8 million in the previous year, primarily due to increased activities related to the INM-755 clinical trial [32][33] - G&A expenses were approximately $3.2 million for the period, compared to $1.6 million for the same period last year, driven by personnel expenses, legal fees, and higher insurance fees [34] Business Line Data and Key Metrics Changes - The company realized B2B sales of bulk rare cannabinoids of approximately $300,000 for the three months ended December 31, 2021, marking the first quarter that revenues from the BayMedica acquisition were included [36] - Prior to the acquisition, BayMedica had cumulative revenues of $2.4 million over a 20-month period ending September 2021, primarily from one product, CBC [38] Market Data and Key Metrics Changes - The current market prices for rare cannabinoids range from approximately $17,000 to $30,000 per kilogram, with the company believing it can be competitive on pricing while maintaining attractive margins [15] - CBDV and THCV are expected to have high demand, with CBDV thought to have potential applications in conditions such as autism spectrum disorder, and THCV showing promise in appetite suppression and weight loss [66] Company Strategy and Development Direction - The company aims to position itself as a leader in the rare cannabinoid space, focusing on both pharmaceutical and health and wellness markets [9][10] - The acquisition of BayMedica is central to the company's strategy, allowing for expedited integration and commercial activities, including product launches [10][12] - The company plans to launch new products, enhance sales and marketing infrastructure, and develop new cannabinoid analogues for pharmaceutical applications [13][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID-19 pandemic, including global supply disruptions and staffing issues affecting development timelines [28] - The company expects to see considerable progress in advancing its programs over the next few months, with key priorities including product launches and updates on clinical trials [29] Other Important Information - The company announced the hiring of Jerry Griffin as Vice President of Sales and Marketing at BayMedica, aimed at accelerating commercial plans and growing market share [17] - The company filed a shelf prospectus for $50 million, which is a typical component of a capital market strategy for growth companies [40] Q&A Session Summary Question: When can we expect initial data from the INM-755 trial? - Management indicated there will be no interim analysis, and results will be announced after the trial is completed and data analyzed [46] Question: What would be considered positive data in the EB trial? - The trial design allows each patient to serve as their own control, comparing the active cream to a vehicle cream [47] Question: Can you provide insights on peak sales for the new cannabinoid products? - Management stated that it is difficult to forecast peak sales due to limited data on market opportunities for rare cannabinoids [50][52] Question: What level of revenues is needed for BayMedica to break even? - Management noted that it is challenging to determine breakeven levels due to various factors affecting capital deployment and product launches [56] Question: What is the expected cash runway for the company? - The company expects its cash and cash equivalents to be sufficient to fund operations into the first quarter of fiscal 2023 [42]