Conferences. On behalf of OTC Markets, we're very pleased you joined us for the Life Sciences Investor Forum. Our next presentation. Please note you may submit questions for the presenter in the box to the left of the slides. You can also view a company's availability for one-on-one meetings by clicking "Book a Meeting" in the top toolbar. At this point, I'm very pleased to welcome Eric Adams. He's the Chief Executive Officer and President of InMed Pharmaceuticals, which trades on NASDAQ under the symbol INM. Welcome back, Eric.
John, thanks for the intro. Glad to be here, and I appreciate everyone taking the time to join us wherever they may be. I would be pleased to present to you today InMed Pharmaceuticals and the numerous drug development programs that we're working on, so let's jump right in. As a publicly traded company, it's important that you understand we will be using forward-looking statements in this presentation, so this slide is available, and you could read through in particular what some of those statements may be, as well as referencing our documents filed with the SEC that you can find on EDGAR.com, so InMed is a pharmaceutical drug development company, and we're focused on a pipeline of proprietary small molecule drug candidates that target the CB1 and CB2 receptors.
In particular, we're looking at three applications of this class of compounds: one for Alzheimer's, one for ocular disease, and one for dermatology. I'll go into a little bit of detail on each of those. I think the real drivers behind the company include the exceptional leadership team that we have. We are a small but highly experienced group of individuals who've spent a lot of time in drug development over the years across the entire breadth of activities that it takes to get a drug from discovery all the way through to commercialization. We have a really good capital market structure and a very clean balance sheet. So that's also something that is a little bit unique in the industry for a company of our size. We basically have two operating segments. InMed is the parent company that is focused on the drug development.
That includes discovery, R&D, and manufacturing. We also have an entity in the U.S. called BayMedica that kind of leverages the manufacturing know-how that we have into the commercial markets for non-intoxicating rare cannabinoids. And so we'll talk a little bit about that, but I'm not going to spend a lot of time there today. We'll focus more on the drug development side of the business. Going into the drug development programs, as I mentioned, we have three in particular: two that are in preclinical stage and one that has completed phase two clinical trials. And I'll talk about each of these individually. And really, the unifying theme behind these is this class of compounds that the company has spent a number of years trying to understand what the potential roles are in treating different diseases.
We focused in on these three as ones where we think there can be a very beneficial outcome by the use of these compounds in diseases with high unmet medical needs, of which you see here three that we've identified. We'll start out talking about Alzheimer's disease. Now, I don't think I have to explain this to everyone. All of us have been affected probably in one shape or another by Alzheimer's or similar neurodegenerative diseases. It's something that just stretches across our countries. Up to 7.2 million Americans are affected by this disease. It has a huge financial impact on all countries and people who are suffering from this. We wanted to take a look at this. We saw some early preclinical data with our compound INM-901 that we think could lead to very important clinical outcomes for this age group. It's still early on.
We're in preclinical testing, but we've seen some very interesting things. We've seen a statistically significant reduction in neuroinflammation looking at long-term preclinical studies. We saw some other attributes such as the growth of the neurons themselves, the neurites, which are the finger-like structures that are attached to the neurons. We've demonstrated some positive data in terms of pharmacokinetics and being able to deliver this drug as an oral formulation, but not only can it be delivered orally, importantly, it's a drug that can cross the blood-brain barrier, and in pharmaceutical research, this is a very important aspect, especially when you're working on drugs related to dementia. The drug has to be able to go from the blood into the brain, which is the target of its activity, and this class of compounds does that very effectively.
Interestingly, we've also seen improvement in behavior and cognitive functions in long-term preclinical studies in animals. We've seen a lot of positive things, and we're continuing the development, and we're very excited about this compound. This is one of our favorite slides. It really takes a look at the multiple mechanisms of action that we're seeing with this compound in the brain. Typically, Alzheimer's disease has been defined as an increase in your amyloid beta, which is this protein that builds up and blocks neuronal function. That's been targeted by a lot of the drugs that are out there now, the ones that are approved now. Years and multi-billion dollars have been spent on trying to target this particular pathway. Interestingly, 901 also has an impact on amyloid beta, but we think that's the least interesting thing that's going on here.
Other things that we are seeing is, as I mentioned, the neurogenesis here in the lower left, that these neurons in the brain actually will branch out and form new connections with other neurons in the presence of this compound. So we think that's going to have an important effect on trying to reestablish cognition in patients with dementia. We've also shown that there's a neuroprotective effect, that neurons tend to be less impacted by disease and by natural cell death as well in the presence of this compound. So that's an important aspect. But really, the one that we are becoming more and more focused on is the neuroinflammatory aspects of the disease and how INM-901 is capable of reducing neuroinflammation. So inflammation, as you know, is the root cause of a lot of diseases.
If you think of any disease that ends in itis, like arthritis or bronchitis, the itis makes reference to inflammation. So anything that has that itis on the end of it is an inflammatory-based disease, so neuroinflammation, we think, is an important aspect of dementia and in particular Alzheimer's, and we have the ability to reduce the inflammation of these neurons in a number of different models, so the effects that we see over on the left-hand side here for INM-901, we see a decrease in cytotoxicity and in cell death. We see a decrease in neuroinflammation, an increase in neuroprotection and neurite outgrowth. We've also seen an increase in neuronal function. So these are all the things that we think come together to make this a multiple mechanism of action approach to improving this disease state.
We've also gone in and looked at long-term studies in animals that have basically developed Alzheimer's or Alzheimer's-like conditions, and when we treat the diseased animals with this product, they return to a more normalized behavior than what you see in the diseased animals, so we saw an increase in locomotion and their ability to function and move around, an increase in memory, and an increase in cognition through a number of different tests that are all validated to look at these different outcomes in these models, so there's a whole host of evidence now behind why we think 901 is going to have an important outcome, and we're very excited to continue that development. We think neuroinflammation is really important.
If you think of the role of inflammation in the disease, the old view towards understanding Alzheimer's was that you have this increase in amyloid beta and tau proteins that are kind of gunking up the system, if you will, and preventing communication between the neurons. That would lead to neuronal damage. The damage is what actually caused the inflammation, which is the response by the body to send in everything that's needed to kind of clean up and address this disease. The inflammation was a good thing. Acute inflammation is good. Chronic inflammation is bad. You don't want this inflammation to last for a long time. Now the new view is that, look, this isn't a very straight line of disease. It's something that is a vicious cycle between the interaction of all these different contributors to the disease.
So it may start at any point. It may start with the neuronal damage. It may start with neuroinflammation, or it may start with amyloid beta and tau buildup. But they all impact each other. And they all play important roles, possibly equal roles, but important roles in the disease. So coming in to address this disease doesn't start with amyloid beta and tau. It can start with other approaches that may address these other impacts on the brain. So just to summarize how 901 may potentially mitigate Alzheimer's disease pathology, as I said, there's an anti-inflammatory action. We looked at a number of biomarkers in the blood and in the brain that are responsible for inflammation. So here you see a whole list of markers that we were looking at, different proteins, interleukins. And these are things that are typically associated with increased inflammation in the brain.
As I said, we provide some neuroprotection. We significantly reduce amyloid beta-induced cell death, so that was an important outcome. The regeneration of the neurons in the brain, we saw an increase in neurite outgrowth, so we think that's important. We've measured behavioral outcomes in a number of different models in long-term animal studies. We've looked at the availability or the ability to deliver this drug by oral formulation and still achieve therapeutic levels in the brain, and we continue to look at other molecular validations, including mRNA data, that would support why we're seeing all these different effects, and we'll be presenting that data in due course, so INM-901 is a very interesting, very promising molecule proprietary to InMed that we think has the possibility to bring very important changes and impacts to the Alzheimer's and probably other dementias as well. A little bit on dry age-related macular degeneration.
Macular degeneration, a lot of people have heard of. It's an eye disease that can blur your central vision, eventually leading to blindness. It's something that affects a lot of people, about 19.8 million Americans and over 200 million people worldwide, so there's a lot of drugs available for what's called wet AMD. We're looking specifically at dry AMD, where there's very few drugs that have been approved, and they don't have that significant of an impact, so we think that, again, based on our impact on neurons with this class of compounds, this is a disease that is also impacting the neurons at the back of the eye. Just to give you a summary, if you look at the back of the eye, you have the optic nerve, which is in the back of the eye, is the retina.
But the damage to these neurons is what ends up causing these gaps in vision and ultimately blindness. So you can see here on the left and in the center and on the right-hand side, the effects of dry AMD. You can see that the photoreceptor cells here become damaged along with the retinal pigment epithelium. And this is what causes the disease. So what we are seeing in the presence of our drug candidate INM-089 is that these photoreceptor cell layer and the retinal pigment epithelium become healed and actually can reverse the effects of dry AMD. So it's a very interesting program. And we'll be talking more about that as the data becomes available. What is 089? It's a preferential signaling ligand for the receptors CB1 and CB2. As I said, we have demonstrated that it preserves retinal function in animal models of AMD disease.
It's a drug that right now is targeted to be delivered by injection into the eye. It's a very standard procedure for a lot of drugs that target the back of the eye or the retina. So it falls right into that commercial space. And a number of other things, the protection of the retinal ganglion cells, which, again, are neurons. So no surprise there. We've seen a lot of effect with 901, and we've seen the same with 089. And this also is a proprietary small molecule drug that has been developed by our company. I'll switch just briefly to the product that we had in human clinical trials. It was a cannabinol cream, or CBN is the abbreviation for cannabinol. And we learned a lot of interesting things about this product called INM-755.
We saw in a number of preclinical models that it can do a number of things. It can reduce inflammation in the skin. It can reduce pain. It can reduce itch. It can help address wound healing. So the question was, where would a drug like this have an important impact? And there's a very devastating genetic disease called epidermolysis bullosa, or EB, where the integrity of the skin is lost due to misregulation or misformed proteins in the skin, whose job it is to keep the skin layers intact. And so this disease was of particular interest because there's very few products that can be used to benefit this patient population. So we went through all the clinical development, made it into phase two clinical trials that were conducted. And it was a small trial.
What we wanted to do is to see if there are indeed outcomes for these very different potential impacts, like I said, including pain and itch and inflammation. The patients that are enrolled, however, were primarily non-wound itch patients, which means that their skin was intact. It wasn't wounded, but they had a very chronic, very, very miserable existence with the itch component of their skin. And as you can imagine, in a patient who has very weak skin, itching it would actually rip the skin and cause a wound. So actually, physically itching it wasn't an option for these patients. So you can imagine if you have an itch that you can't scratch, that could drive you crazy. So the patients who enrolled were basically non-wound itch patients with epidermolysis bullosa. We saw a clinically meaningful improvement in chronic itch in 66% of the patients.
And you can see there the breakdown of that. So we think it's a very interesting drug for chronic itch, which can spread across many diseases, not just epidermolysis bullosa, but into others as well. However, we had to make a decision how we were going to prioritize this. Going into phase three would have been very expensive. So we decided to seek a partner who would be willing to fund the phase three trials. We've not been successful in that yet, but we continue to keep that on the radar screen. So the pipeline, the next steps, you can see here for 901, we are continuing the CMC, which is chemistry manufacturing and controls activities, to create the underlying drug that actually works as well as the drug product, how it's going to be delivered in oral formulations.
There's additional GLP studies, which is basically the toxicology studies that are required prior to entering human clinical trials. Those still are being planned and conducted, and similarly, INM-089, we're advancing towards a pre-IND meeting with the FDA to talk about that program and introduce it to them, get their input and feedback on our development plans, as well as some of the toxicology programs that need to be completed there, so we're continuing down the traditional pharmaceutical drug development pathway, and as everyone knows, this is just something that takes time, as well, we're always interested in speaking with co-development partners and strategic investors, people with deeper pockets and with more resources on the personnel side. Of course, could move something like this a lot quicker than we can. We're making decent progress.
We'd love to make great progress with the ability to spend on multiple aspects in parallel rather than in series. So we are continuing to reach out to people that we think may be interested in these programs and trying to arrange some kind of strategic partnership. So I'll stop there on the R&D side, talk a little bit about the corporate side of things. As I mentioned, we're a very small team, but very experienced in pharmaceutical drug development as well as commercialization. You can see here the people on the left-hand side working on the drug development, and on the right-hand side, our team at BayMedica, who are in charge of the commercialization of the non-intoxicating rare cannabinoids. So we've got a lot of experience. We've got the right people around the table.
As we move on to later stage drug development activities, we'll continue to expand the team as needed. But we have a very strong core of people working for the company right now. Financial snapshot of the company as of September 30th, which was our last reporting period: $9.3 million in the bank, which we would estimate gives us another year's runway. You can see here the capital structure: shares outstanding of 4.2 million, so a very small float, and fully diluted 6.7 million. Stock has been up and down. I think it's the same for everyone in the industry. Our market cap right now sits at about $5.6 million if you include some of the shares from the financing that we conducted back in June. So very clean balance sheet. We have no debt. We run a very tight ship in that regard.
But none of us are thrilled with the stock performance, but we continue to plug away and make advancements and take the money that is invested into us and convert it into meaningful clinical or preclinical data as we march towards human clinical trials for our two lead programs. Key value drivers next year continue to advance both INM-901 in Alzheimer's and INM-089 in dry AMD towards IND filings. So we have a lot of work to do, but we have that all planned out, and we're ready for that. We also have the ability to develop new compounds for the pharma R&D pipeline. So that may be another opportunity to work with someone to develop a specific CB1, CB2 receptor agonist to address other diseases. So we have that capability. But also importantly is continue to identify and execute on strategic initiatives with an eye towards building shareholder value.
So I'll stop there. Maybe we can take a couple of questions. I think we have a little bit of time left. I will flip over here. Let's see here. One question is for INM-755, what type of deal structure partnership are you targeting? I think we're pretty open to what that may ultimately look like. We can provide a lot of input into what the drug is, how and why it was developed the way that it was. But moving into the next phase, it's really up to the new partner to determine where they think the best commercial opportunity lies and the pathway of developing clinical trials to help get the product there. So we're open to a lot of different possible structures. And we're glad to take any inbound inquiries for that product. There's one here. Do we currently have any academic or strategic partners?
Not strategic partners per se. From an academic standpoint, we work anywhere in the world with the experts that the laboratories that are experts in the diseases that we are studying. So for instance, we work with University of British Columbia here in Vancouver, where we're based, on certain programs. We work in Italy with other groups that are specialists in certain diseases. And we'll work in the U.S. or Asia. So wherever the experts are, we're pretty flexible to work with them to unlock the potential of these compounds. Let's see here. What differentiates INM-089 from current dry AMD approaches? I think it's really the mechanism of action. So we know that it works at the neuron level in helping to repair damaged neurons to provide neural protection for the ones that are there and healthy.
So we'll continue to do studies to further elucidate the different mechanisms of action there. But this stemmed from a program that we used to have in glaucoma, where that was one of the primary findings. So we saw not only in glaucoma a reduction in intraocular pressure, but we saw this neuroprotective effect, which we actually patented. That's actually what led us to looking at other neuroinflammatory disease, such as Alzheimer's. So that all started with our glaucoma program, which we're no longer pursuing, but it helped us shift into Alzheimer's and into dry AMD. So we think that, again, the neuroinflammatory component is really important, and it's going to be important in a large number of diseases. Let's see here. A couple more questions. How are you prioritizing resources between 901 and 089?
Do you have a no-go criteria for each asset for the next 12-24 months? So right now, I think the priority is given to 901. We think that the effects that we're seeing there are very exciting. We think that its potential impact on the disease is much higher and probably a higher unmet medical need in Alzheimer's than what we see in dry AMD. So certainly, we are very interested in seeing 901 move forward as quickly as possible. In terms of go/no-go criteria, anytime we run into a roadblock from the planned preclinical studies where we're not seeing the results that we had anticipated or hoped for, those are going to be no-go roadblocks for those programs. But we haven't seen that yet. So we continue to develop both of those. Yeah. I mean, it's just classical drug development.
If there's going to be a no-go, you try to get there as quickly as possible so you stop spending your money on that program. But we haven't seen that. We've seen incredibly exciting data in all of the preclinical models for 901 and certainly some for 089 as well. So we'll continue with both of those programs, with, I would say, a slight edge given to 901. What catalysts should investors track in 2026 that you believe will lead to a re-rating of the stock? That's a good question. I think the biggest catalyst that we can hit is identifying the strategic partner to help develop these programs. And that would do a number of things. I mean, one, it's always nice to have that external validation that it brings to a program.
It certainly brings more non-dilutive funding to the program, and it actually offsets a lot of development if it's structured the right way, that the strategic partner would then pick up a lot of the development costs moving forward, so that would be key for us, and again, we're continuing with those discussions and trying to put those in place for all three programs, so that's going to be one of the biggest ones, and I think that would have the biggest impact. As we collect more data that we think is very exciting, we'll be presenting that at scientific conferences. Again, that might be the thing that catches the eye of some of these companies that we're not already talking to, and those can be important catalysts as well, but the data is very positive. These are all very well-designed and executed studies.
And we're just building momentum through the science, which is what we need to be doing. So yeah, that's actually a very good question. Okay. Well, listen, I appreciate everyone participating today and taking time to hear our story. We're, again, very excited about the two compounds that we have in preclinical development. And certainly, we have an opportunity with the phase two asset to get a product out there into advanced clinical trials through a partnership. So we're on the right path. We had a very eventful year with the science, and we think 2026 is going to be even better. So again, appreciate you taking the time. And thank you so much for joining today. Please address any questions you see in the email address here to Colin Clancy. And if you wanted to have an individual meeting with the company, we can make that happen.
Thanks so much.