DB:MWG2

Stock Analysis Report

Executive Summary

InMed Pharmaceuticals Inc., a pre-clinical stage biopharmaceutical company, researches and develops cannabinoid-based therapies.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has InMed Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MWG2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

27.3%

MWG2

11.3%

DE Biotechs

7.1%

DE Market


1 Year Return

-59.1%

MWG2

-5.1%

DE Biotechs

-17.5%

DE Market

Return vs Industry: MWG2 underperformed the German Biotechs industry which returned -5.1% over the past year.

Return vs Market: MWG2 underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

MWG2IndustryMarket
7 Day27.3%11.3%7.1%
30 Day-36.0%-8.0%-20.0%
90 Day-6.9%-22.7%-26.1%
1 Year-59.1%-59.1%-4.9%-5.1%-15.0%-17.5%
3 Year-52.0%-52.0%17.7%16.4%-18.8%-25.8%
5 Year-23.1%-23.1%-5.1%-7.5%-17.9%-29.2%

Price Volatility Vs. Market

How volatile is InMed Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is InMed Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

3.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MWG2's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MWG2's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MWG2 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: MWG2 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MWG2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MWG2 is good value based on its PB Ratio (3.4x) compared to the DE Biotechs industry average (3.6x).


Next Steps

Future Growth

How is InMed Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MWG2 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MWG2 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MWG2 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if MWG2's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if MWG2's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MWG2's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has InMed Pharmaceuticals performed over the past 5 years?

-35.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MWG2 is currently unprofitable.

Growing Profit Margin: MWG2 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MWG2 is unprofitable, and losses have increased over the past 5 years at a rate of -35.9% per year.

Accelerating Growth: Unable to compare MWG2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MWG2 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (8.7%).


Return on Equity

High ROE: MWG2 has a negative Return on Equity (-120.01%), as it is currently unprofitable.


Next Steps

Financial Health

How is InMed Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: MWG2's short term assets (CA$12.4M) exceed its short term liabilities (CA$1.7M).

Long Term Liabilities: MWG2's short term assets (CA$12.4M) exceed its long term liabilities (CA$386.2K).


Debt to Equity History and Analysis

Debt Level: MWG2 is debt free.

Reducing Debt: MWG2 has no debt compared to 5 years ago when its debt to equity ratio was 24%.


Balance Sheet

Inventory Level: MWG2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: MWG2's debt is covered by short term assets (assets are 2.2289905227245E+17x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MWG2 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MWG2 has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of -45.3% each year.


Next Steps

Dividend

What is InMed Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MWG2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MWG2's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MWG2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MWG2's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MWG2's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Eric Adams (56yo)

3.75s

Tenure

CA$778,140

Compensation

Mr. Eric A. Adams, B.S. Chem., M.I.B. has been the Chief Executive Officer and President at InMed Pharmaceuticals Inc. since June 16, 2016. Mr. Adams served as a Strategic Advisor of Augurex Life Sciences  ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD552.90K) is about average for companies of similar size in the German market ($USD432.27K).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric Adams
President3.75yrsCA$778.14k0.31% CA$81.6k
Eric Hsu
Senior Vice President of Preclinical Research & Development1.17yrsCA$294.01k0.024% CA$6.5k
Sazzad Hossain
Co-Founder & Member of the Scientific Advisory Board1.17yrsCA$184.70kno data
Bruce Colwill
Chief Financial Officer0.58yrno data0.029% CA$7.7k
Brendan Payne
Director of Investor Relationsno datano datano data
Richard Hoy
Vice President of Sales & Marketing15.5yrsno datano data
Alexandra D. Mancini
Senior Vice President of Clinical & Regulatory Affairs3.42yrsCA$692.50k0.12% CA$30.8k
Ado Muhammad
Senior Consultant of Medical Affairsno datano datano data

3.4yrs

Average Tenure

Experienced Management: MWG2's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Adams
President3.75yrsCA$778.14k0.31% CA$81.6k
Sazzad Hossain
Co-Founder & Member of the Scientific Advisory Board1.17yrsCA$184.70kno data
Steven Dinh
Member of Scientific Advisory Board1yrno datano data
William Garner
Independent Chairman of the Boardno dataCA$98.17kno data
Andrew Hull
Independent Director3.5yrsCA$65.07k0.36% CA$96.1k
Adam Cutler
Independent Director4.33yrsCA$65.07kno data
Catherine Sazdanoff
Independent Director0.67yrno datano data
Mauro Maccarrone
Member of Scientific Advisory Board2.42yrsno datano data
Vikramaditya Yadav
Member of Scientific Advisory Board1.83yrsno datano data

2.1yrs

Average Tenure

56yo

Average Age

Experienced Board: MWG2's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.2%.


Top Shareholders

Company Information

InMed Pharmaceuticals Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: InMed Pharmaceuticals Inc.
  • Ticker: MWG2
  • Exchange: DB
  • Founded: 1981
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$41.348m
  • Listing Market Cap: CA$26.498m
  • Shares outstanding: 172.28m
  • Website: https://www.inmedpharma.com

Number of Employees


Location

  • InMed Pharmaceuticals Inc.
  • 815West Hastings Street
  • Suite 310
  • Vancouver
  • British Columbia
  • V6C 1B4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 1999
MWG2DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1999
IMLF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1999

Biography

InMed Pharmaceuticals Inc., a pre-clinical stage biopharmaceutical company, researches and develops cannabinoid-based therapies. The company’s lead product is INM-755, a cannabinoid product candidate to treat epidermolysis bullosa. The company is also involved in developing INM-085, a cannabinoid-based topical therapy for glaucoma; and INM-405 for the treatment of orofacial pain. In addition, it engages in the development of drugs for the treatment of various diseases, including dermatology, ocular, pain, inflammation, pulmonary disease, neurodegenerative, and oncology disease areas. It has an agreement with Pharmaseed Ltd to develop a final formulation for INM-755; and work on IND-enabling pharmacology and toxicology studies. The company also has research agreement with the National Research Council of Canada in for biofermentation development and scale-up processes for cannabinoid biosynthesis in E.coli. The company was formerly known as Cannabis Technologies Inc. and changed its name to InMed Pharmaceuticals Inc. in October 2014. InMed Pharmaceuticals Inc. was incorporated in 1981 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 21:00
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.