Roth starts InMed Pharma at buy; PT $1.10

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Roth Capital Partners initiated coverage of InMed Pharmaceuticals (TSX:IN; OTCQX:IMLFF) with a “buy” rating and 12-month price target of $1.10. The stock closed at 57 cents on March 15.

InMed is focused on developing cannabinoid-based pharmaceuticals for diseases with high unmet medical need. The company also is developing an E. coli-based platform for the biosynthesis of medicinally relevant cannabinoids.

InMed’s lead candidate is INM-755, a cannabinoid formulated for topical application, for the treatment of the orphan genetic indication, epidermolysis bullosa (EB), which results in blistering of skin and mucous membranes.

Analyst Jerry Isaacson writes that INM-755, which is positioned to enter clinical trials in late 2019, is designed to re-establish the epidermal-dermal junction in EB patients’ skin by increasing the production of certain keratins. “It, therefore, has the potential to be the first disease-modifying therapy approved for this indication,” he added.

EB affects approximately 6,000 patients in the U.S. InMed also has cannabinoid-based treatments in preclinical development for glaucoma and orofacial pain, which is felt in the mouth, jaws and the face.

Jennifer Poland