InMed Pharmaceuticals (NASDAQ: INM) stock soared 27.9% in pre-market trading on Friday as the cannabinoid pharmaceutical company announced that it would focus on its core business of drug development and reduce its exposure to the health and wellness sector.
The company made this decision as a result of bleak demand for BayMedica’s naturally-occurring cannabinoid products. InMed acquired BayMedica in October last year.
InMed’s CEO Eric Adams elaborated further, “… despite the significant efforts by the commercial team at BayMedica, the market demand for the BayMedica naturally-occurring cannabinoids in the Health & Wellness (“H&W”) sector is not progressing as anticipated.”
In order to make this transition, InMed will focus on reducing its inventory and decreasing its manufacturing and commercial research and development efforts.
InMed’s management further pointed out that BayMedica “will continue to evaluate opportunities for potential structured supply arrangements and collaborations and will consider other potential strategic alternatives for the commercial business.”
As a result of this transition, InMed will report a non-cash impairment charge of its long-lived assets from the BayMedica acquisition of $3.5 million during the quarter ending on June 30,2022.
