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INMED PHARMACEUTIC COM NPV (OTCMKTS:IMLFF) Got Its News Flow, What's Next?

INMED PHARMACEUTIC COM NPV (OTCMKTS:IMLFF) Got Its News Flow, What's Next?
Written by
Chris Sandburg
Published on
April 7, 2017
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Back in January, we highlighted a micro cannabis play called INMED PHARMACEUTIC COM NPV (OTCMKTS:IMLFF) as being one to keep an eye on as 2017 matured. The company had picked up a bit of strength on the back of a fresh board appointment, and we noted that while its operations were still very early stage, a positive news flow could help InMed to lock in further gains going forward.And this is exactly what's happened. The company as trading in and around $0.20 a share at the time. It's since gone on a sustained run and logged highs ahead of $0.71 on Thursday, before settling to close out at $0.67. That's a close to 250% gain across the first quarter alone.To be fair, we got a little lucky on this one. We noted that news flow was key to maintaining strength, but we weren’t expecting an outlet as big as Forbes to feature InMed as part of a cannabis focus piece. The piece detailed InMed's technology, and its potential application to a wide range of healthcare indications, and even went as far as comparing InMed to GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH), the darling of the cannabis pharmaceutical space right now. Sure, the comparison was coupled with a 'too early to tell' qualifier, but at this end of the space, just the mentioning of a name in the same paragraph by a company like Forbes is enough to get shares changing hands.So the question now becomes, what's next?Well, we've had the news flow, and there's some hype surrounding InMed right now. We'd love to see the company capitalize on this attention by achieving a notable operational development.So where might this come from?Before we speculate, here's a quick introduction to the company for those not familiar with it. It's a cannabis pharmaceutical stock that started out as a standard biotech play (one looking to develop a pipeline towards commercialization in the US) but that has matured into (and in some sense, stumbled across) a couple of other potentially profitable ventures. The first is rooted in a database that it set up to try and help it identify promising preclinical assets. There are around 100 cannabinoids in the cannabis plant, but the industry only really uses two of them (CBD and THC) right now because the rest are tough to extract efficiently.InMed wanted to work with some of the others (as they are potentially more effective in certain indications than CBD or THC) and so it set up a database that catalogues the cannabinoids and cross references them with diseases. The company could then use this database to figure out theoretical disease-cannabinoid combos quickly and cheaply. It also developed a technology that allows for the production of these cannabinoids on a mass scale, without having to go through the inefficient extraction method noted above.It's now found that, while the company developed both these things to aid its own development pipeline, there are other companies that are willing to pay to use them to kick start their own cannabis pharmaceutical pipelines.Like we said, it's been pretty lucky, but that's not a bad thing – if it can capitalize on the luck.So getting back to the point, where might an operational development come from that the company can rest on as supportive of the hype that it's currently enjoying (or in other words, something that can keep the buzz going)?The pipeline isn’t really going to get going until 2018, so that's not near term enough for us. The database could be a winner, if management can get some quantitative data in to analysts' hands as to how many third parties are paying for access. What we're looking at primarily, however, is the manufacturing side of the company. The companies using the database are going to want to get the cannabinoids it is referencing produced, and like we've said already, InMed has developed a system that can do it quicker and cheaper (and more efficiently) than the current alternatives. The system (according to management) should be ready to go commercial this summer. We're looking for any news, then, that confirms this commercial availability, and for any insight into how many of the companies accessing the database are falling through to potential leads from a manufacturing perspective.As we noted in the past, this company is a risky play at this stage. Sure, it's got plenty of promise, and sure, it's picking up media coverage, but it's on the back of these sorts of runs that we often see equity raises, and so anyone wanting to pick up an early exposure is going to have to accept some degree of dilution near to medium term.We will be updating our subscribers as soon as we know more. For the latest updates on IMLFF, sign up below!Disclosure: We have no position in IMLFF and have not been compensated for this article.

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