InMed Pharmaceuticals (NASDAQ:INM) announced a definitive merger agreement with Mentari Therapeutics, a privately held biotechnology company developing migraine prevention therapies, alongside a planned private placement expected to support Mentari’s pipeline programs.
Eric Adams, President and CEO of InMed Pharmaceuticals, said during a conference call that the proposed transaction represents a “transformative event” for InMed shareholders and follows a multiyear review of strategic alternatives aimed at maximizing long-term shareholder value.
Combined company to operate as Mentari Therapeutics
The companies expect the transaction to close in the second half of 2026, subject to shareholder approvals from both companies, regulatory approvals and other customary closing conditions. Upon completion, the combined company will operate under the name Mentari Therapeutics and trade on Nasdaq under a new ticker symbol.
Adams said InMed shareholders may also be able to participate in potential future value from InMed’s existing research and development programs, including INM-901 for Alzheimer’s disease and INM-089 for age-related macular degeneration. He said this could occur through mechanisms and instruments tied to a potential out-licensing or divestiture of those assets, if any.
Those mechanisms may include a potential dividend upon closing of the merger and contingent value rights that would entitle holders to a portion of net proceeds, if any, from potential out-licensing or divestiture following the closing of the merger. Adams noted that these outcomes depend on factors including timing, proceeds and InMed’s projected net cash position at closing.
Mentari targets migraine prevention market
Julianne Bruno, Chair of the Board of Mentari Therapeutics, said the company was founded to advance therapies intended to address unmet needs in migraine prevention. She said Mentari is the eighth company founded on assets licensed from Paragon Therapeutics, which she described as focused on biologics discovery and protein engineering.
Bruno said migraine prevention has been reshaped by CGRP-targeted therapies, which she said are currently annualizing at roughly $6 billion and are projected to grow to about $11 billion over the next several years. However, she said meaningful unmet need remains, noting that approximately 40% to 50% of patients treated with anti-CGRP therapies do not achieve a 50% reduction in monthly migraine days, and fewer than one-third achieve a 75% reduction.
Lead programs include MT-001 and MT-002
Mentari’s pipeline includes two parallel lead programs: MT-001 and MT-002.
- MT-001: Bruno described MT-001 as a potentially best-in-class anti-PACAP monoclonal antibody. She said PACAP is a newly validated target that acts through a pathway independent of CGRP, giving it potential relevance for patients who do not respond to CGRP therapies. Mentari expects to file a clinical trial application, or equivalent, for MT-001 in mid-2026. The company expects phase 1 pharmacokinetic and early safety data from healthy volunteers in 2027, followed by phase 2a proof-of-concept data in chronic or episodic migraine in 2028.
- MT-002: Bruno said MT-002 is an anti-CGRP and anti-PACAP bispecific antibody designed to block two complementary and validated targets. Mentari anticipates filing a clinical trial application, or equivalent, for MT-002 in the first quarter of 2027 and expects phase 1 pharmacokinetic and early safety data from healthy volunteers by year-end 2027.
Bruno said both MT-001 and MT-002 are half-life extended and designed for convenient subcutaneous dosing. Mentari also has additional pipeline targets in migraine prevention, including its CGRP antibody MT-003 and two undisclosed targets.
Private placement expected to raise about $290 million
Mentari also announced commitments for an oversubscribed private investment expected to generate total gross proceeds of approximately $290 million. Bruno said the private placement was led by Fairmount and joined by a syndicate of biotechnology investors.
According to Bruno, the combined company’s cash position at closing is expected to fund operations through 2028, including beyond key value inflection points for MT-001 and MT-002.
Colin Clancy, Vice President of Investor Relations and Corporate Communications at InMed, cautioned that the call included forward-looking statements related to the potential transaction, clinical development timelines, financing, market sizes and shareholder benefits. He said actual results could differ materially from expectations and pointed investors to InMed’s SEC filings, including its annual report on Form 10-K and a planned proxy statement/prospectus related to the proposed merger.
About InMed Pharmaceuticals (NASDAQ:INM)
InMed Pharmaceuticals is a clinical-stage biopharmaceutical company headquartered in Vancouver, British Columbia, that is dedicated to the discovery and development of novel therapeutics derived from cannabinoids. Leveraging a proprietary drug discovery engine, the company works to identify, design and optimize cannabinoid-based molecules with the goal of addressing diseases that have significant unmet medical needs. InMed’s integrated business model combines research, development and manufacturing capabilities under one roof to streamline the progression of promising assets from preclinical studies into human trials.
The company’s pipeline features multiple lead programs targeting both neurological and dermatological disorders.
