This Clinical Stage BioPharma Is Seeing Solid Growth In Rare Cannabinoid Demand From The Health And Wellness Sector

BayMedica, a rare cannabinoids supplier for the health and wellness sector acquired by InMed Pharmaceuticals INM in 2021, is scaling up its manufacturing process to meet growing demand. That includes optimizing its supply chain, increasing production, and continuing its research on rare cannabinoids to expand its product portfolio to unlock more of their potential benefits and create a consistent high-quality supply. As manufacturers learn more about these potential benefits and uses, BayMedica has seen its revenue increase notably in the first half of the year. InMed released unaudited revenues in July showing 123% growth for Q4, fiscal 2023. This comes on the heels of 120% growth in BayMedica’s third-quarter revenue and 46% growth in its second quarter. Here’s what is driving BayMedica’s growth and what that means for InMed. 

BayMedica Posts Consistent Growth As Rare Cannabinoids Gain Market Share

While THC and CBD are more well-known, there are more than 100 rare cannabinoids found in cannabis. These interact with the human endocannabinoid system which is involved in almost every aspect of body's functioning and plays an important role in maintaining homeostasis. BayMedica specializes in supplying bioidentical versions of some of those lesser-known non-psychoactive cannabinoids.

Its leading product, for example, is cannabichromene (CBC). Research has found that CBC has many health benefits without any of the psychoactive effects typically associated with cannabis. 

This makes it a prime candidate for a wide range of health and wellness products, as well as an important partner for the more popular CBD, which is already used for its anti-inflammatory and pain-relieving effects. While each cannabinoid can provide some therapeutic benefits on its own, they can potentially become more potent when they work together via a process dubbed the entourage effect. For example, that compounding effect can lead to improved pain relief and stronger anti-inflammatory activity when CBC is combined with THC. It may even be responsible for the antimicrobial properties of cannabinoids seen in studies where multiple are combined.  Learn more about CBC, including requesting their recent White paper, here.

BayMedica’s portfolio of rare cannabinoids also includes THCV, CBDV and CBT – all of which can offer therapeutic benefits in their own right or be combined with the better-known THC and CBD compounds to create new cannabis health and wellness products.

As manufacturers learn more about these potential benefits and uses, BayMedica has seen demand increase in the first half of the year. With this increased demand, BayMedica appointed a new director of manufacturing and logistics to oversee supply chain optimization to ensure that the company can scale production as demand continues to grow. That includes expanding sources of raw materials and adding downstream purification partners. 

With the Department of Health and Human Services (HHS) recently recommending that marijuana be bumped down to Schedule 3 – a drug class reserved for those with only a moderate to low potential for abuse – the cannabis industry could be on the cusp of a new era of softer, less complicated regulation.

If the DEA’s own review reaches the same conclusion as HHS, the re-scheduling could help spur even more demand growth as it paves the way for more research and eases restrictions on cannabis businesses.

Having a revenue generating subsidiary like BayMedica makes InMed very unique among clinical-stage biopharma companies. Also the fact that InMed is already Nasdaq listed, makes it one of the few cannabis aligned companies listed on a major exchange which is advantageous for investors. The clinical-stage biopharma has a growing pipeline of rare cannabinoid therapeutics for treating a range of conditions including glaucoma, age-related macular degeneration, and neurodegenerative diseases. 

Featured photo by CBD Infos on Unsplash.

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