MEI Pharma, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending December 31, 2024. 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. (KKC) in the prior fiscal year. The company also reported a net loss of $2.7 million for the quarter, compared to a loss of $11.1 million in the same period last year.
In terms of operational changes, MEI Pharma has undergone a strategic shift, announcing on July 22, 2024, that it would explore strategic alternatives, including potential transactions and an orderly wind-down of operations. This decision led to a reduction in workforce, which began on August 1, 2024, and the discontinuation of clinical development for its drug candidate voruciclib. The company’s research and development expenses decreased significantly, falling to $0.3 million from $3.9 million year-over-year, reflecting the cessation of clinical studies and associated costs.
The company’s total assets decreased to $24.4 million as of December 31, 2024, down from $41.4 million at the end of the previous fiscal period. This decline was primarily due to a reduction in cash and cash equivalents, which increased to $23.7 million from $3.7 million, largely due to cash generated from the sale of its asset ME-344. The sale, completed on October 22, 2024, provided an initial payment of $0.5 million, with potential future milestone payments of up to $62 million.
MEI Pharma's strategic realignment has also included leadership changes, with the departure of key executives, including the former President and CEO David M. Urso. Justin J. File, previously the Chief Financial Officer, has stepped in as Acting CEO. The company is now focused on preserving cash and evaluating options for its remaining drug candidates, including voruciclib, which is currently on hold pending further strategic decisions.
Looking ahead, MEI Pharma anticipates continued operating losses and negative cash flows for the foreseeable future. The company believes its current cash reserves will be sufficient to meet obligations and fund operations for at least the next 12 months. However, the ongoing evaluation of strategic alternatives may lead to further changes in its operational focus and financial strategy.
About MEI Pharma, Inc.
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