InMed Pharmaceuticals Reports $12.6M Net Loss, Plans Merger with Mentari Therapeutics

InMed Pharmaceuticals Inc. reported a significant decline in its financial performance for the fiscal year ending June 30, 2026, with a net loss of approximately $12.6 million, compared to a loss of $8.2 million in the previous year, marking a 54% increase in losses. The company's total operating expenses rose by 37% to $11.6 million, driven primarily by increased research and development costs, which grew by 7% to $3.0 million, and general and administrative expenses, which surged by 23% to $6.7 million. The increase in expenses reflects the company's ongoing commitment to its drug development pipeline, which includes candidates targeting Alzheimer’s disease, dry age-related macular degeneration, and epidermolysis bullosa.

InMed's financial position has been further impacted by the decision to wind down its only revenue-generating segment, BayMedica, which was officially completed by June 30, 2026. This strategic move was ratified by the board on March 4, 2026, and resulted in the termination of all commercial operations, leaving the company focused solely on preclinical development. The wind-down incurred approximately $555,000 in severance and related costs, with an expectation of an additional $120,000 in expenses. As of June 30, 2026, InMed reported cash and cash equivalents of $2.2 million, which are projected to fund operations only until September 2026, raising substantial doubt about the company's ability to continue as a going concern.

In terms of strategic developments, InMed is pursuing a merger with Mentari Therapeutics, Inc., which was announced on May 19, 2026. This merger, subject to shareholder approval and customary closing conditions, is expected to result in Mentari stockholders owning approximately 98.99% of the combined entity. The merger aims to enhance InMed's financial stability and operational capabilities, although the company has acknowledged that failure to complete the merger could adversely affect its financial condition and operational prospects.

Operationally, InMed has made progress in its research and development efforts, particularly with its lead drug candidate, INM-901, which is being developed for Alzheimer’s disease. The company has reported promising preclinical results, including significant reductions in neuroinflammation and improvements in cognitive function in animal models. However, the company has indicated that any further development of its product candidates will require additional financing, which remains uncertain given its current financial situation.

Looking ahead, InMed's management has expressed the need to secure additional funding to support its ongoing research and development activities. The company is exploring various avenues for financing, including potential strategic partnerships and equity or debt offerings. However, there is no assurance that it will be able to raise the necessary capital on favorable terms, which could significantly impact its ability to advance its product candidates and achieve long-term viability.