MEI Pharma Reports Second Quarter Fiscal Year 2025 Cash Position
MEI Pharma (MEIP) has reported its financial position for Q2 FY2025, with $23.7 million in cash and cash equivalents and no outstanding debt as of December 31, 2024. The company continues its previously announced strategic alternatives review, initiated in July 2024, exploring options including out-licensing opportunities and merger and acquisition possibilities to maximize stockholder value. Oppenheimer & Co. is serving as the exclusive financial advisor in this process.
The company has implemented cash preservation measures, including a staged reduction-in-force during the first half of fiscal year 2025. MEI Pharma notes that there is no guarantee the strategic review will result in any successful transactions, and updates will only be disclosed when legally required or upon completion of the evaluation process.
MEI Pharma (MEIP) ha riportato la sua posizione finanziaria per il secondo trimestre dell'anno fiscale 2025, con 23,7 milioni di dollari in contante e equivalenti e nessun debito in sospeso al 31 dicembre 2024. L'azienda continua la revisione delle alternative strategiche precedentemente annunciate, avviata a luglio 2024, esplorando opzioni che includono opportunità di out-licensing e possibilità di fusioni e acquisizioni per massimizzare il valore per gli azionisti. Oppenheimer & Co. funge da consulente finanziario esclusivo in questo processo.
L'azienda ha implementato misure di preservazione della liquidità, inclusa una riduzione graduale del personale durante la prima metà dell'anno fiscale 2025. MEI Pharma osserva che non c'è alcuna garanzia che la revisione strategica porti a transazioni di successo, e gli aggiornamenti saranno divulgati solo quando legalmente richiesto o al termine del processo di valutazione.
MEI Pharma (MEIP) ha informado sobre su posición financiera para el segundo trimestre del año fiscal 2025, con 23.7 millones de dólares en efectivo y equivalentes y sin deudas pendientes a 31 de diciembre de 2024. La compañía continúa con la revisión de alternativas estratégicas previamente anunciadas, iniciada en julio de 2024, explorando opciones que incluyen oportunidades de licenciamiento externo y posibilidades de fusiones y adquisiciones para maximizar el valor para los accionistas. Oppenheimer & Co. actúa como asesor financiero exclusivo en este proceso.
La empresa ha implementado medidas de conservación de efectivo, incluyendo una reducción gradual de personal durante la primera mitad del año fiscal 2025. MEI Pharma señala que no hay garantía de que la revisión estratégica resulte en transacciones exitosas, y las actualizaciones solo se divulgarán cuando sea legalmente requerido o al finalizar el proceso de evaluación.
MEI Pharma (MEIP)는 2025 회계연도 2분기 재무 상태를 보고했으며, 2024년 12월 31일 기준으로 2,370만 달러의 현금 및 현금성 자산을 보유하고 있으며, 미지급 부채는 없습니다. 회사는 2024년 7월에 시작된 이전에 발표된 전략적 대안 검토를 계속 진행하고 있으며, 라이센스 아웃 기회 및 합병 및 인수 가능성을 포함한 옵션을 탐색하여 주주 가치를 극대화하고 있습니다. Oppenheimer & Co.는 이 과정에서 독점 재무 자문사로 활동하고 있습니다.
회사는 현금 보존 조치를 시행했으며, 2025 회계연도 전반기에 걸쳐 단계적인 인력 감축을 포함하고 있습니다. MEI Pharma는 전략적 검토가 성공적인 거래로 이어질 것이라는 보장은 없으며, 업데이트는 법적으로 요구되거나 평가 프로세스가 완료될 때만 공개될 것이라고 언급했습니다.
MEI Pharma (MEIP) a rapporté sa position financière pour le deuxième trimestre de l'exercice 2025, avec 23,7 millions de dollars en espèces et équivalents et aucune dette en cours au 31 décembre 2024. L'entreprise poursuit l'examen de ses alternatives stratégiques précédemment annoncé, lancé en juillet 2024, en explorant des options telles que des opportunités de sous-licence et des possibilités de fusions et acquisitions pour maximiser la valeur pour les actionnaires. Oppenheimer & Co. agit en tant que conseiller financier exclusif dans ce processus.
L'entreprise a mis en œuvre des mesures de préservation de la trésorerie, y compris une réduction progressive de l'effectif pendant la première moitié de l'exercice 2025. MEI Pharma souligne qu'il n'y a aucune garantie que l'examen stratégique aboutisse à des transactions réussies, et les mises à jour ne seront divulguées que lorsque cela sera légalement requis ou à l'issue du processus d'évaluation.
MEI Pharma (MEIP) hat seine finanzielle Lage für das zweite Quartal des Geschäftsjahres 2025 berichtet, mit 23,7 Millionen Dollar in bar und liquiden Mitteln und keinen ausstehenden Schulden zum 31. Dezember 2024. Das Unternehmen setzt die zuvor angekündigte Überprüfung strategischer Alternativen fort, die im Juli 2024 eingeleitet wurde, und erkundet Optionen wie Out-Licensing-Möglichkeiten und Fusionen und Übernahmen, um den Aktionärswert zu maximieren. Oppenheimer & Co. fungiert als exklusiver Finanzberater in diesem Prozess.
Das Unternehmen hat Maßnahmen zur Erhaltung von Bargeld umgesetzt, einschließlich einer gestaffelten Personalreduzierung in der ersten Hälfte des Geschäftsjahres 2025. MEI Pharma weist darauf hin, dass es keine Garantie dafür gibt, dass die strategische Überprüfung zu erfolgreichen Transaktionen führt, und Aktualisierungen werden nur veröffentlicht, wenn dies gesetzlich erforderlich ist oder nach Abschluss des Bewertungsprozesses.
- Strong cash position of $23.7 million with zero debt
- Active pursuit of strategic alternatives to maximize shareholder value
- Implementing cash preservation measures to extend runway
- Ongoing workforce reduction indicating operational downsizing
- Uncertainty regarding successful outcome of strategic alternatives review
- No guarantee of successful transactions or partnerships
Insights
The reported cash position of
The ongoing strategic review, which includes exploring out-licensing opportunities and M&A possibilities, is particularly important given this valuation disconnect. The engagement of Oppenheimer & Co. as financial advisor adds credibility to the process, as they have extensive experience in biotech M&A and restructuring.
The implementation of staged workforce reductions suggests a methodical approach to cash preservation, which is critical for maintaining negotiating leverage during strategic discussions. This approach typically extends the cash runway while maintaining essential operations and key assets that could be valuable in potential transactions.
The company's silence on specific developments in the strategic review process is standard practice to maintain confidentiality and negotiating position. However, the combination of cash preservation efforts and the extended duration of the strategic review (ongoing since July 2024) suggests a complex evaluation process that could involve multiple potential scenarios for shareholder value realization.
For context, similar situations in the biotech sector often result in one of three outcomes:
- Asset sales or licensing deals that can unlock immediate value
- Reverse mergers with private biotech companies seeking a public listing
- Complete liquidation with cash distribution to shareholders
The presence of cash exceeding market value provides a theoretical floor for valuations in negotiations, though ongoing operational costs and the uncertainty of the strategic review outcome continue to influence market sentiment.
Evaluation of Strategic Alternatives is Ongoing
As previously announced in July 2024, the Company is continuing its review and evaluation of potential strategic alternatives. As part of this assessment, the Company continues to consider options such as out-licensing opportunities for existing programs and merger and acquisition opportunities, with the goal of maximizing the value of its assets for its stockholders. Oppenheimer & Co., Inc. is serving as the Company’s exclusive financial advisor in this process.
During the first half of fiscal year 2025, the Company commenced cash preservation efforts that include a reduction-in-force, which will continue in stages as the Company’s operational and strategic direction evolves.
There can be no assurance the exploration of strategic alternatives will result in any agreements or transactions, or, if completed, any agreements or transactions will be successful or on attractive terms. The Company does not expect to disclose developments with respect to this process unless or until the evaluation of strategic alternatives has been completed or the Board of Directors has concluded disclosure is appropriate or legally required.
As of December 31, 2024, MEI had
About MEI Pharma
MEI Pharma, Inc. (Nasdaq: MEIP) is a pharmaceutical company with a portfolio of several drug candidates that may offer novel and differentiated cancer therapies. The drug candidate pipeline includes voruciclib, an oral cyclin-dependent kinase 9 inhibitor. For more information, please visit www.meipharma.com. Follow us on X (formerly Twitter) @MEI_Pharma and on LinkedIn.
Forward-Looking Statements
Certain information contained in this press release that are not historical in nature are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the Company’s ability to identify, assess and execute a strategic transaction or realize value from its existing assets, the Company’s ability to preserve cash in order to adequately fund an orderly wind down of its operations if no transaction is consummated, the ability of stockholders and other stakeholders to realize any value or recovery as part of a transaction or a wind down process, the Company’s workforce reduction and future charges expected to be incurred in connection therewith, the adequacy or sufficiency of the Company’s existing cash resources and other statements. You should be aware that our actual results could differ materially from those contained in the forward-looking statements, which are based on management’s current expectations and are subject to a number of risks and uncertainties, including, but not limited to the Company’s ability to identify attractive strategic alternatives; the Company’s ability to retain key personnel; the adequacy of the Company’s capital resources in light of changing circumstances; the actions of various stakeholders of the Company; uncertainty regarding the impact of rising inflation and the increase in interest rates as a result; potential economic downturn; activist investors; government regulation; and one-time events. We do not intend to update any of these factors or to publicly announce the results of any revisions to these forward-looking statements.
MEI Pharma, Inc.
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December 31,
|
|
June 30,
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|
|
(Unaudited) |
|
(Audited) |
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ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
23,739 |
|
|
$ |
3,705 |
|
Short-term investments |
|
|
— |
|
|
|
34,640 |
|
Prepaid expenses and other current assets |
|
|
646 |
|
|
|
2,424 |
|
Total current assets |
|
|
24,385 |
|
|
|
40,769 |
|
Operating lease right-of-use asset |
|
|
— |
|
|
|
214 |
|
Property and equipment, net |
|
|
— |
|
|
|
392 |
|
Total assets |
|
$ |
24,385 |
|
|
$ |
41,375 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
596 |
|
|
$ |
3,168 |
|
Accrued liabilities |
|
|
1,691 |
|
|
|
5,187 |
|
Total current liabilities |
|
|
2,287 |
|
|
|
8,355 |
|
Total liabilities |
|
|
2,287 |
|
|
|
8,355 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
421,001 |
|
|
|
421,239 |
|
Accumulated deficit |
|
|
(398,903 |
) |
|
|
(388,219 |
) |
Total stockholders’ equity |
|
|
22,098 |
|
|
|
33,020 |
|
Total liabilities and stockholders’ equity |
$ |
24,385 |
|
$ |
41,375 |
|||
MEI Pharma, Inc.
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Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
65,297 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
308 |
|
|
|
3,912 |
|
|
|
3,471 |
|
|
|
7,397 |
|
General and administrative |
|
|
3,143 |
|
|
|
8,018 |
|
|
|
8,332 |
|
|
|
14,549 |
|
Total operating expenses |
|
|
3,451 |
|
|
|
11,930 |
|
|
|
11,803 |
|
|
|
21,946 |
|
(Loss) income from operations |
|
|
(3,451 |
) |
|
|
(11,930 |
) |
|
|
(11,803 |
) |
|
|
43,351 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
Interest and dividend income |
|
|
279 |
|
|
|
869 |
|
|
|
634 |
|
|
|
1,963 |
|
Gain on disposition of a non-financial asset |
|
|
500 |
|
|
|
— |
|
|
|
500 |
|
|
|
— |
|
Other expense, net |
|
|
(5 |
) |
|
|
(2 |
) |
|
|
(15 |
) |
|
|
(3 |
) |
Net (loss) income |
|
$ |
(2,677 |
) |
|
$ |
(11,063 |
) |
|
$ |
(10,684 |
) |
|
$ |
45,311 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share - basic and diluted |
|
$ |
(0.40 |
) |
|
$ |
(1.66 |
) |
|
$ |
(1.60 |
) |
|
$ |
6.80 |
|
Weighted-average shares used in computing net (loss)
|
|
|
6,663 |
|
|
|
6,663 |
|
|
|
6,663 |
|
|
|
6,663 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250212793628/en/
Justin J. File
858-898-0976
investor@meipharma.com
Source: MEI Pharma, Inc.
FAQ
What is MEI Pharma's (MEIP) current cash position as of December 31, 2024?
When did MEIP begin its strategic alternatives review process?
What strategic options is MEIP currently considering?
What cost-cutting measures has MEIP implemented in fiscal year 2025?
Who is MEIP's financial advisor for the strategic alternatives review?
