An interesting article about InMed
A new industry leader in cannabis bio-pharma?
Jeff Nielson, Stockhouse
3 days ago
InMed Pharmaceuticals Inc. has just reported the closing of its previously announced, bought-deal financing. Total proceeds were $5.75 million which included fully exercising the “over-allotment option”. A focal point for investors is the lead underwriters for the placement: heavyweights which include Canaccord Genuity Corp. and Roth Capital Partners, Llc.
These investment banks have been raising capital for the major players in the bio-pharma space, where total market capitalization has now reached $5.6 billion. Included among their clients list are bio-pharma giants like GW Pharmaceuticals ($2.8 billion) and Zynerba ($400 million). These same bankers were ready-and-willing to step in and do this bought deal with InMed and its market cap of (as of this writing) $46 million.
Why? The best way to answer that question is with another question.
Where is the biggest money to be made in the cannabis space? Bloomberg News sought to answer this question in an April 20, 2017 article. Bloomberg’s Global Cannabis Competitive Peers Index has tripled since the start of 2017, but many investors may not be able to guess which cannabis sub-sector has been most dominant.
Most readers would have probably assumed that the biggest cannabis cultivators would be hogging most of the largest market caps. However, such an assumption would be incorrect. In fact, Bloomberg ascertained that it is the cannabis bio-pharma companies which are attracting the richest valuations. That article included an additional observation on three of the highest flyers in the cannabis sector over the previous 12 months.
…many stocks in the index have been standouts. Among the best: a Canadian, a U.S. and an Australian stock. InMed Pharmaceuticals, based in Vancouver, was up 257 percent as of April 19; it specializes in the research and development of cannabinoid-based therapies. Cannabics Pharmaceuticals, a U.S. company whose R&D is based in Israel, works on personalized anti-cancer and palliative treatments. It was up 220 percent. And MMJ PhytoTech, the first Australian-based company to receive a Canadian medicinal cannabis cultivation license, has returned 173 percent. [emphasis mine]
InMed Pharmaceuticals Inc. (CSE: IN, OTCQB: IMLFF, Forum) is one of the cannabis bio-pharma companies which has been outperforming the sector as a whole. IN’s success can be attributed in part to the general strength of these cannabis bio-pharma companies. However, a bigger part of the reason for the strong one-year performance has been purely the Company’s internal fundamentals.
Those fundamentals begin with a strong drug development pipeline, aimed at what is already a $6.6 billion market. But the key to this pipeline is the IP behind it.
InMed boasts two innovations which management believes will enable the Company to position itself as an industry leader in the rapidly growing cannabinoid sub-sector of bio-pharma.
In general terms, IN has devised an algorithm which allows much more rapid testing and evaluation of the medicinal potential of the nearly 100 cannabinoids found in the marijuana plant. This is coupled with a proprietary process to synthesize true cannabinoid drugs, suitable for licensing as bone fide pharmaceuticals.
Bio-tech research is a field with an inherent amount of uncertainty – like any scientific research. However, for investors looking for emerging leaders in this rapidly growing space, InMed’s IP advantages provide those investors with an attractive candidate.
FULL DISCLOSURE: InMed Pharmaceuticals Inc is a paid client of Stockhouse Publishing.