MEI Pharma(MEIP) - 2025 Q3 - Quarterly Results

Corporate Update and Strategic Review MEI Pharma is actively reviewing strategic alternatives to maximize stockholder value while implementing cash preservation measures and maintaining a strong financial position Evaluation of Strategic Alternatives MEI Pharma is actively continuing its review of strategic alternatives initiated in July 2024, which includes potential out-licensing of its programs or M&A opportunities, with the stated goal of maximizing stockholder value - The company is continuing its review and evaluation of potential strategic alternatives, considering options such as out-licensing opportunities for existing programs and merger and acquisition opportunities[2] - Oppenheimer & Co., Inc. has been retained as the company's exclusive financial advisor to assist in this process[2] - There is no assurance that the exploration of strategic alternatives will result in any agreements or transactions. The company does not expect to disclose developments until the process is completed or disclosure is deemed appropriate or legally required[4] Financial Position and Cost Management As of March 31, 2025, MEI Pharma reported a cash and cash equivalents balance of $20.5 million with no outstanding debt, actively implementing cash preservation measures Cash Position as of March 31, 2025 | Metric | Value (USD) | | :---------------------- | :------------ | | Cash and cash equivalents | $20.5 million | | Outstanding Debt | None | - The company is continuing its cash preservation efforts, which include a reduction-in-force that is progressing in stages as its strategic direction evolves[3] Financial Statements MEI Pharma's financial position reflects decreased assets and equity from cash usage, with a reduced net loss driven by operating expense cuts Condensed Consolidated Balance Sheets As of March 31, 2025, MEI Pharma's total assets were $20.8 million, a significant decrease from $41.4 million on June 30, 2024, primarily due to cash usage and depletion of short-term investments Balance Sheet Comparison | Balance Sheet Item | March 31, 2025 (Unaudited, in thousands) | June 30, 2024 (Audited, in thousands) | | :------------------------------ | :------------------------- | :---------------------- | | Cash and cash equivalents | $20,472 | $3,705 | | Short-term investments | $0 | $34,640 | | Total Assets | $20,779 | $41,375 | | Total Liabilities | $1,238 | $8,355 | | Total Stockholders' Equity | $19,541 | $33,020 | - The company's short-term investments were fully depleted, decreasing from $34.6 million at June 30, 2024, to zero by March 31, 2025[10] Condensed Consolidated Statements of Operations For Q3 FY2025, MEI Pharma reported no revenue and a net loss of $2.6 million, a smaller loss than the prior year due to significant operating expense cuts, while the nine-month period saw a net loss reversing prior year's income Q3 FY2025 vs Q3 FY2024 (Three Months Ended March 31, in thousands) | P&L Item (except per share) | Q3 FY2025 (in thousands) | Q3 FY2024 (in thousands) | | :-------------------------- | :---------- | :---------- | | Total Revenues | $0 | $0 | | Total operating expenses | $2,774 | $9,829 | | Net (loss) income | ($2,573)| ($9,127)| | Net (loss) income per share | ($0.39) | ($1.37) | Nine Months Ended March 31 (in thousands) | P&L Item (except per share) | FY2025 (in thousands) | FY2024 (in thousands) | | :-------------------------- | :----------- | :---------- | | Total Revenues | $0 | $65,297 | | Total operating expenses | $14,577 | $31,775 | | Net (loss) income | ($13,257)| $36,184 | | Net (loss) income per share | ($1.99) | $5.43 | - Operating expenses were significantly reduced year-over-year, with R&D expenses for the nine-month period dropping from $12.6 million to $3.8 million and G&A expenses decreasing from $19.2 million to $10.7 million, reflecting cost-cutting measures[11] Company and Legal Information This section outlines MEI Pharma's focus on novel cancer therapies and details the report's forward-looking statements and associated risks About MEI Pharma MEI Pharma is a pharmaceutical company focused on developing novel and differentiated cancer therapies, including its drug candidate voruciclib - MEI Pharma is a pharmaceutical company with a portfolio of drug candidates aimed at providing novel cancer therapies[6] - The company's pipeline includes voruciclib, an oral cyclin-dependent kinase 9 (CDK9) inhibitor[6] Forward-Looking Statements The report contains forward-looking statements concerning the company's ability to execute a strategic transaction, preserve cash, and the potential outcomes of these efforts, cautioning that actual results could differ materially due to various risks - The report includes forward-looking statements regarding the company's ability to execute a strategic transaction, preserve cash, and the potential for stockholders to realize value[7] - Key risks and uncertainties include the ability to identify attractive strategic alternatives, retain key personnel, adequacy of capital resources, and the impact of economic conditions[8]