Letter to Shareholders
Annual Letter to Shareholders 2022
Frequently Asked Questions
InMed Pharmaceuticals Acquires BayMedica
InMed and BayMedica started working together in a research collaboration in November 2020. Through this partnership, we quickly recognized the power of our combined technologies and extensive cannabinoid know-how. It was also very evident how well our teams worked together. This collaboration was the catalyst for the acquisition.
The strategy behind the acquisition is the drive to accelerate our combined programs. The acquisition significantly expands our cannanbinoid manufacturing capabilities and expertise and positions our company as a global leader in the manufacturing and development of rare cannabinoids.
The acquisition of BayMedica provides us with immediate access to an initial yet growing revenue stream and it balances InMed’s longer-term pharma product opportunities with short term commercial opportunities within the health & wellness sector. It also offers complete manufacturing flexibility to serve all segments of the rare cannabinoid market and brings with it an extensive suite of new proprietary cannabinoid analogs for pharmaceutical development.
Investors can expect to benefit from the growing revenue streams of CBC (cannabichromene) and new product launches expected over the next 12 months, reducing the risk of research and development. Investors can also expect expanded opportunities and acceleration of our pharmaceutical development programs. In addition, the new cannabinoid analogs offer the potential of further revenue through pharmaceutical licensing opportunities.
There are some very clear synergies between both companies with opportunity to leverage skillsets in both directions. The combined company has significant expertise in several methods of cannabinoid manufacturing giving us complete flexibility to select the most appropriate and cost-effective method based on the selected cannabinoid and its intended use. InMed gains access to extensive expertise in both yeast and chemical manufacturing, while BayMedica gains access to InMed’s proprietary enzyme and process optimization.
From a personnel perspective, BayMedica offers complementary expertise in both manufacturing and rare cannabinoids with minimal overlap.
The acquisition of BayMedica greatly expands our manufacturing capabilities and expertise and also benefits our pharmaceutical development programs. A library of new cannabinoid analogs from BayMedica provides new therapeutic opportunities for our pharmaceutical program.
InMed is continuing its research and clinical development of rare cannabinoid CBN in skin and ocular disease and will investigate other rare cannabinoids for therapeutic development.
BayMedica has established proprietary compounds that are based upon the structures of naturally occurring cannabinoids and are designed to either augment the potential therapeutic effect against specific diseases or enhance product safety, or both.
Unlike natural forming cannabinoid compounds, which are not patentable, commercial patents can be filed for these new cannabinoid analogs. Any new drug candidates using these cannabinoid analogs will be patentable which provides real value for our pharmaceutical program and prospective partnerships.
BayMedica has several rare cannabinoids in the final stages of development with two high-value compounds near commercialization. InMed and the BayMedica teams are currently completing market research to accelerate the launch of these compounds in the consumer health and wellness marketplace.
We are assessing new customers and distributors to ensure current supply/demand can be met with new products launching this year. The pipeline of products includes many different rare cannabinoids including CBCv, THCv, CBGv, CBT and CBN as well as certain novel and proprietary analogs.
Our business strategy is to focus on attractive margin products rather than mainstream products that are easily commoditized.
Rare cannabinoids are starting to gain traction in the market with their potential value / benefit for customers. We are looking to commercializing lesser known and rare cannabinoids, beyond CBG, that could have a significant impact in the consumer health and wellness space. Products and formulations using rarer compounds, including those in the variant families, none of which are intoxicating, have shown some potentially interesting health effects.
There are very few competitors manufacturing and commercializing CBC.
BayMedica leads the industry in manufacturing scale of CBC with current batch sizes in excess of 200 kg and an ability to increase to metric ton quantities as market demand increases.
Currently BayMedica has a very diversified wholesale customer base operating in various consumer health and wellness segments including nutraceuticals, pharmaceutical, cosmetic and functional food and beverage, as well as in animal health markets.
The advantage of BayMedica’s manufacturing processes is that it can be tailored for a variety of industries. As we increase scale and expand our cannabinoid portfolio, we expect the size and scope of our customer base to grow significantly.
Through this acquisition, BayMedica becomes a division of InMed Pharmaceuticals. Headquarters will be located in Vancouver, BC, with locations in California and Nevada.
The BayMedica and InMed teams will integrate to bring together a wealth of experience across multiple disciplines including synthetic biology, chemical synthesis, enzyme production, molecular biology and pharmaceutical drug design and development.