Buckle up, traders! As of this writing, InMed Pharmaceuticals Inc. (NASDAQ: INM) is lighting up the market with a jaw-dropping gain of over 100%, trading at $4.91 per share. This tiny biotech, headquartered in Vancouver, Canada, is making waves with a game-changing announcement that’s got investors buzzing. So, what’s the deal? Let’s dive into the catalyst behind this monster move, unpack what it means for traders, and explore the risks and rewards of jumping into a stock like INM. Plus, if you’re looking to stay ahead of the curve on hot stocks like this, tap here to join over 250,000 traders getting free daily stock alerts sent straight to their phones!

The Catalyst: A Breakthrough in Alzheimer’s Research

This morning, InMed dropped a bombshell that sent its stock into overdrive. Their drug candidate, INM-901, showed statistically significant results in reducing neuroinflammation in preclinical studies for Alzheimer’s disease. Now, that’s a mouthful, so let’s break it down. Alzheimer’s is a brutal condition affecting millions, and one of its key drivers is inflammation in the brain, which damages neurons and fuels cognitive decline. InMed’s latest data shows INM-901 slamming the brakes on this inflammation, tackling markers like NLRP3 and cytokines (think IL-6, IL-1β, and others) that are major players in the disease’s progression. Even better? The drug works independently of the usual suspects in Alzheimer’s—amyloid beta and tau proteins—meaning it could have broader applications for other brain-related conditions.

This isn’t just lab talk. The study used an ex vivo model (fancy term for testing on animal brain tissue outside the body) and showed INM-901 could dial down inflammation in a big way. Dr. Eric Hsu, InMed’s SVP of Preclinical Research, called out the drug’s potential to directly target brain inflammation, a key culprit in Alzheimer’s and other neurodegenerative diseases like Parkinson’s. The company’s now gearing up for more preclinical studies, with plans for IND-enabling studies (the stepping stone to human trials) on the horizon.

Why does this matter? Alzheimer’s treatments are a holy grail in biotech. With an aging population and limited options on the market, any company showing promise in this space can see its stock go parabolic. Just look at today’s pre-market action—posts on X were screaming about INM’s 79.6% surge before the bell, with some traders eyeing a breakout at $4.40. That kind of momentum can draw a crowd, but it also brings volatility, so let’s talk about what’s at stake.

Why INM Is Moving: The Power of Biotech Catalysts

InMed’s stock is spiking because biotech is a sector where news can ignite massive price swings. A single press release about a successful study or FDA approval can send a small-cap stock like INM soaring, especially when it’s tied to a high-profile disease like Alzheimer’s. As of this writing, INM’s market cap is a modest $3.5 million, and with only 1.21 million shares outstanding, it doesn’t take much buying to push the price higher. Low float stocks like this are rocket fuel for traders when good news hits.

But here’s the kicker: INM isn’t just a one-trick pony. Beyond INM-901, they’re working on INM-755, a topical cream for a rare skin condition called epidermolysis bullosa, and INM-089 for age-related macular degeneration. Their BayMedica segment also churns out rare cannabinoids for the health and wellness industry, adding a commercial revenue stream—$1.3 million in Q1 2025 alone, up 40% year-over-year. This diversified pipeline makes INM intriguing, but it’s the Alzheimer’s news that’s stealing the show today.

The Risks: High Reward, High Stakes

Now, let’s pump the brakes and talk risks. Biotech stocks are not for the faint of heart. INM’s price action today is thrilling, but it’s a classic high-risk, high-reward play. First, the company’s cash position is tight—$3.5 million as of December 2024, with another $2.9 million raised in January 2025. That’s enough to keep the lights on through Q2 2025, but drug development is insanely expensive, and they’ll likely need more funding soon. Dilution (issuing more shares) could hit the stock hard, as we’ve seen with their recent 1-for-20 share consolidation to stay Nasdaq-compliant.

Then there’s the science. Preclinical results are exciting, but they’re a long way from human trials. Many biotech drugs fail to make it through the FDA’s gauntlet, and INM-901 is still in the early stages. The stock’s 52-week range tells the story: it’s swung from $0.12 to $15.70, showing wild volatility. Over the past year, INM’s down 47.20%, and it’s been a rough ride with a 16.72% drop in the last month alone. Today’s spike could be a short-term pop, and traders chasing the momentum might get caught if the hype fades.

Short interest is another factor. With 6.98% of the float shorted, today’s surge could be squeezing out bearish traders, amplifying the move. But when short squeezes end, prices can crater fast. Plus, INM doesn’t pay dividends, so you’re banking purely on price appreciation or future buyout potential.

The Rewards: Why Traders Are Buzzing

On the flip side, the rewards could be massive. If INM-901 keeps delivering in preclinical studies and moves toward human trials, the stock could see more days like today. Alzheimer’s drugs are a multi-billion-dollar market, and even a hint of success can attract big pharma partners or buyout offers. InMed’s focus on cannabinoids and small molecule drugs also taps into a growing trend—cannabinoid-based therapies are gaining traction for their potential in everything from pain to neurological disorders.

The company’s intellectual property is another plus. They’ve got multiple patent families covering their compounds, formulations, and manufacturing processes, which could make them a valuable acquisition target. And with only 13 employees, InMed’s lean operation means they’re nimble, focusing resources on high-impact programs like INM-901.

Traders on X are already hyping the stock, with some calling it a “runner” and pointing to the volume pouring in. That social buzz can fuel momentum, especially for a penny stock like INM. If you’re a trader who thrives on volatility, this kind of setup—low float, big news, and retail excitement—can be a goldmine.

Trading Lessons: Navigating the Biotech Rollercoaster

So, what can we learn from INM’s wild ride today? Biotech stocks are a masterclass in market psychology. Big news like InMed’s Alzheimer’s breakthrough can spark frenzied buying, but it’s crucial to keep your head. Here are a few tips for trading stocks like INM:

1. Catalysts Are King: News drives biotech. Whether it’s a clinical trial result, FDA approval, or a new patent, always dig into the details. InMed’s press release today was specific—statistically significant reductions in inflammation markers—so it’s no surprise the stock’s flying.
2. Watch the Float: Low-float stocks (like INM’s 1.21 million shares) can move fast because there aren’t many shares to go around. That’s great for upside but brutal if the selling starts.
3. Mind the Cash: Biotech burns money. InMed’s cash runway is short, so keep an eye on their fundraising moves. Dilution or debt can tank a stock, even after good news.
4. Volatility Is Your Friend (and Enemy): INM’s 12.18% price volatility over the last 30 days is high, and today’s surge proves it. Use stop-loss orders to protect yourself, and don’t chase a stock too far into a rally.
5. Stay Informed: The market moves fast, and stocks like INM can pop up out of nowhere. Want to catch the next big mover? Tap here to get free daily stock alerts sent to your phone and stay in the loop with over 250,000 other traders.

The Bottom Line

InMed Pharmaceuticals is stealing the spotlight today, and for good reason. Their INM-901 drug candidate is showing serious promise in tackling Alzheimer’s-related brain inflammation, a breakthrough that could put them on the map in a massive market. But with great potential comes great risk—biotech is a wild ride, and INM’s low cash reserves, early-stage pipeline, and volatile history mean you’ve got to tread carefully. Whether you’re a trader looking to ride the momentum or an investor eyeing the long-term potential, INM’s story is a reminder of why biotech keeps us on the edge of our seats.

Want to stay ahead of the next big stock move? Join over 250,000 traders getting free daily stock alerts sent straight to their phones by tapping here. Stay sharp, trade smart, and let’s keep hunting for the next big opportunity!