InMed Pharmaceuticals Inc (INM)

[lesgetrich]

There seems to be some misunderstanding about this new biosynthesis process. From Thursday's Q&A...

Earnings Call Transcript

Eric Hsu

Thanks, Jerry. So, while we're scaling up the biosynthesis process, we discovered that there is actually a ceiling with the whole system. That's with regard to how much protein or some of these protein it produce and how much cannabinoid it can generate.

And that's because some of these cannabinoid could be toxic to themselves. So, we will refer to the limitation or dislimitation as a biological burden. So the threshold actually exists, regardless if it's E.Coli the host or yeast or algae. So it's going to be there. So because of this, we actually spend a lot of time optimizing fermentation parameter in order to just increase the cell mass in general.

Working with one of our contract research organizations, we discussed how to overcome these kind of constraints with a bio burden and we discover that there may be a better way just to produce the overall production yield. Of course right now we're working through the provisional stage of the pattern. So, I'm not in the liberty to go in the details on the alternate process. But rest assured that we're actually working both on the traditional and alternate bio fermentation process in parallel right now.

And then we are -- we already invested and -- in the E.coli fermentation and have a lot of intellectual property and know-how surrounding that. So, our first choice will be continue with the E.coli process even applied to the new approach. Thank you.

The way I read this, the alternative process applies to both e-coli and yeast fermentation and is simply a way to increase the yield because at some yield point the cannabinoids "could be toxic to themselves". The problem occurs in both the e-coli and yeast processes. Their preference is to continue using e-coli unless some clear advantage is uncovered during their research to switching to yeast. At this point there's no indication of any advantage to yeast fermentation so they are continuing with e-coli.