MEI Pharma, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded no revenue during this period, a stark contrast to the $65.3 million generated in the same quarter of the previous year. This decline is attributed to the recognition of all deferred revenue associated with the terminated collaboration agreement with Kyowa Kirin Co., Ltd. in the prior fiscal year. The company’s net loss for the quarter was $2.6 million, compared to a loss of $9.1 million in the same quarter last year, reflecting a reduction in operating expenses.
Operating expenses for MEI Pharma decreased significantly, with research and development costs dropping to $0.4 million from $5.2 million year-over-year. This reduction is primarily due to the cessation of all clinical studies following the company's strategic decision to explore alternatives, which included workforce reductions. General and administrative expenses also fell to $2.4 million from $4.6 million, driven by lower facility costs and reduced administrative support activities.
In terms of strategic developments, MEI Pharma has undergone a significant organizational shift. The company announced a reduction-in-force in August 2024 as part of its evaluation of strategic alternatives, which may include potential transactions or an orderly wind-down of operations. The clinical development of its drug candidate voruciclib has been discontinued, although some nonclinical activities will continue. The company also completed the sale of its asset ME-344 to Aardvark Therapeutics, receiving an initial payment of $0.5 million and potential future milestone payments.
As of March 31, 2025, MEI Pharma reported $20.5 million in cash and cash equivalents, a substantial increase from $3.7 million at the end of the previous fiscal year. This increase is largely due to cash generated from investing activities, including proceeds from the sale of short-term investments and the ME-344 asset. The company anticipates that its current cash balance will be sufficient to meet its obligations and fund operations for at least the next 12 months. Looking ahead, MEI Pharma will continue to assess its strategic options while managing its operational costs in light of its ongoing financial challenges.
About MEI Pharma, Inc.
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