MEI Pharma Reports Third Quarter Fiscal Year 2022 Results and Operational Highlights
MEI Pharma, Inc. (Nasdaq: MEIP) reported third-quarter results for FY 2022, highlighting $169 million in cash. Following an FDA meeting, the company will not pursue an accelerated FDA application for zandelisib based on single-arm TIDAL data but will continue with the randomized COASTAL study. The net loss for Q3 was $8.7 million, or $0.07 per share, a notable improvement from a $25.6 million loss in the previous year. R&D expenses increased to $22.3 million, driven by zandelisib studies. Revenue rose to $9.7 million, attributed to the Kyowa Kirin partnership.
- Cash reserves of $169 million to sustain operations for over two years.
- Improved net loss from $25.6 million last year to $8.7 million this quarter.
- Revenue increased to $9.7 million, up from $8.1 million in Q3 2021.
- Abandonment of the accelerated FDA application process for zandelisib.
- R&D expenses rose to $22.3 million, indicating increased costs.
--MEI Begins Fourth Fiscal Quarter with
“The third fiscal quarter of 2022 was underscored by a meeting with the FDA in which we were informed that data from randomized studies are now needed to adequately assess the benefit-risk of PI3K inhibitor drug candidates, including zandelisib, and where it was emphasized that we should continue efforts with the ongoing randomized COASTAL study. Accordingly, we no longer plan to submit an FDA marketing application under the accelerated approval pathway using the single arm TIDAL study. However, we continue to have confidence in zandelisib's differentiated therapeutic profile as observed in our data generated to date, and remain committed to advancing the program to a marketing authorization submission with our partner, Kyowa Kirin,” said
Third Quarter Fiscal Year 2022 Recent Developments and Financial Highlights
-
On
May 12, 2022 , we announced that two abstracts highlighting data and information for zandelisib, an orally administered investigational phosphatidylinositol 3-kinase delta ("PI3Kδ") inhibitor in clinical development for the treatment of B-cell malignancies, will be presented at the upcomingEuropean Hematology Association (EHA) 2022Hybrid Congress to be heldJune 9 – 17, 2022.
-
On
April 8, 2022 , we announced that two posters reporting preclinical data for zandelisib, an orally administered investigational PI3Kδ inhibitor, and ME-344, a tumor selective mitochondrial inhibitor, were presented at theAmerican Association for Cancer Research (AACR) Annual Meeting 2022.
-
On
March 24, 2022 , we reported that the FDA had recently informed us of its position that randomized data is now needed to adequately assess drug efficacy and safety of PI3K inhibitor drug candidates, including zandelisib. At this FDA meeting, the agency discouraged a planned filing based on the Phase 2 TIDAL study data and emphasized that the company continues efforts with the ongoing, randomized Phase 3 COASTAL study as planned. Accordingly, in line with the FDA’s recommendation, the company reported it no longer plans to submit an FDA marketing application based on the single arm Phase 2 TIDAL study.
-
On
February 7, 2022 , we announced the expansion of our management team with the addition of two experienced industry executives:Alejandro Ricart , M.D., joined as senior vice president, clinical development, a role reporting to Richard Ghalie, M.D., chief medical officer, andYomara Gomez-Naiden joined as senior vice president, quality, reporting toDaniel P. Gold , Ph.D., chief executive officer.
Expected Drug Candidate Pipeline Developments
Zandelisib – Oral PI3K delta inhibitor for the treatment of various B-cell malignancies
-
Provide a more complete report of the Phase 2 TIDAL data announced on
November 30, 2021 at upcoming medical meetings in 2022.
- Initiate CORAL, a Phase 2 study evaluating zandelisib plus venetoclax and rituximab in patients with chronic lymphocytic leukemia in the first half of calendar year 2022.
- Provide an update from the arm of a Phase 1b study evaluating zandelisib plus zanubrutinib at an upcoming scientific congress in 2022.
- Report updated data from the Phase 2 TIDAL study arm in follicular lymphoma intended for an upcoming scientific congress in the fourth calendar year quarter of 2022.
Voruciclib – Oral CDK9 inhibitor for the treatment of B-cell malignancies and acute myeloid leukemia
- Initiate Phase 1b study evaluating voruciclib in combination with Venclexta® (venetoclax) in patients with acute myeloid leukemia mid calendar year 2022.
ME-344 – Tumor selective mitochondrial inhibitor
- Initiate a Phase 1b study of ME-344 in relapsed colorectal cancer by the end of calendar year 2022.
Third Quarter Fiscal Year 2022 Financial Results
-
As of
March 31, 2022 , MEI had in cash, cash equivalents, and short-term investments with no outstanding debt.$169.0 million
-
For the quarter ended
March 31, 2022 , cash used in operations was , compared to$17.0 million used in operations for the quarter ended$15.6 million March 31, 2021 . The increase in cash used in operations reflects increased development activity in 2022 and changes in working capital balances.
-
Research and development expenses were
for the quarter ended$22.3 million March 31, 2022 , compared to for the quarter ended$17.9 million March 31, 2021 . The increase was primarily related to costs to support ongoing zandelisib studies, and expenses related to voruciclib and ME-344.
-
General and administrative expenses were
for the quarter ended$8.9 million March 31, 2022 , compared to for the quarter ended$6.2 million March 31, 2021 . The increase primarily relates to personnel costs, professional services and general corporate expenses.
-
MEI recognized revenue of
for the quarter ended$9.7 million March 31, 2022 , compared to for the quarter ended$8.1 million March 31, 2021 . The increase in recognized revenue relates to the partial satisfaction of the research and development obligations under the license agreement with Kyowa Kirin.
-
Net loss was
, or$8.7 million $.07 per share, for the quarter endedMarch 31, 2022 , compared to net loss of , or$25.6 million $.23 per share for the quarter endedMarch 31, 2021 . The Company had 133,152,045 shares of common stock outstanding as ofMarch 31, 2022 , compared with 112,591,778 shares as ofMarch 31, 2021 .
-
The adjusted net loss for the quarter ended
March 31, 2022 , excluding non-cash expenses related to changes in the fair value of the warrants (a non-GAAP measure), was , compared to an adjusted net loss of$21.5 million for the quarter ended$16.4 million March 31, 2021 .
-
Figures for the quarter ended
March 31, 2021 and year endedJune 30, 2021 shown above and in the following tables for revenue, net loss, net loss per share, and adjusted net loss reflect the previously announced restatement of certain of the Company’s historical financial statements, which was completed today.
Restatement of the Company’s 2021 Quarterly Periods
As disclosed in the Current Report on Form 8-K filed with the
About
Forward-Looking Statements
Under
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in
The presentation of adjusted net loss is not meant to be considered in isolation or as a substitute for net loss, the directly comparable financial measure prepared in accordance with GAAP. While we believe adjusted net loss is an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of this financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.
We define adjusted net loss, adjusted to exclude non-cash expenses related to changes in the fair value of the warrants. We have presented adjusted net loss because we believe excluding the non-cash expenses related to changes in the fair value of warrants can produce a useful measure for period-to-period comparisons of our business.
CONDENSED BALANCE SHEETS | |||||||
(In thousands, except per share amounts) | |||||||
|
|
|
|||||
2022 |
|
2021 |
|||||
(unaudited) | (As Restated) | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ |
11,112 |
|
$ |
8,543 |
|
|
Short-term investments |
|
157,930 |
|
|
144,883 |
|
|
Total cash, cash equivalents and short-term investments |
|
169,042 |
|
|
153,426 |
|
|
Unbilled receivable |
|
8,446 |
|
|
7,582 |
|
|
Prepaid expenses and other current assets |
|
5,978 |
|
|
3,809 |
|
|
Total current assets |
|
183,466 |
|
|
164,817 |
|
|
Operating lease right-of-use asset |
|
9,524 |
|
|
7,774 |
|
|
Property and equipment, net |
|
1,439 |
|
|
1,507 |
|
|
Total assets | $ |
194,429 |
|
$ |
174,098 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ |
8,257 |
|
$ |
6,355 |
|
|
Accrued liabilities |
|
10,082 |
|
|
8,402 |
|
|
Deferred revenue |
|
4,789 |
|
|
4,526 |
|
|
Operating lease liabilities |
|
828 |
|
|
928 |
|
|
Total current liabilities |
|
23,956 |
|
|
20,211 |
|
|
Deferred revenue, long-term |
|
91,920 |
|
|
74,696 |
|
|
Warrant liability |
|
9,211 |
|
|
7,370 |
|
|
Operating lease liabilities, long-term |
|
1,536 |
|
|
22,355 |
|
|
Total liabilities |
|
126,623 |
|
|
124,632 |
|
|
Stockholders' equity: | |||||||
Preferred stock, |
|
- |
|
|
- |
|
|
Common stock, |
|
- |
|
|
- |
|
|
Additional paid-in-capital |
|
425,902 |
|
|
369,171 |
|
|
Accumulated deficit |
|
(358,096 |
) |
|
(319,705 |
) |
|
Total stockholders' equity |
|
67,806 |
|
|
49,466 |
|
|
Total liabilities and stockholders' equity | $ |
194,429 |
|
$ |
174,098 |
|
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
2022 |
|
2021
|
|
2022 |
|
2021
|
|||||||||
Revenue | $ |
9,694 |
|
$ |
8,109 |
|
$ |
29,283 |
|
$ |
27,342 |
|
|||
Operating expenses: | |||||||||||||||
Cost of revenue |
|
- |
|
|
405 |
|
|
- |
|
|
1,408 |
|
|||
Research and development |
|
22,318 |
|
|
17,884 |
|
|
63,802 |
|
|
53,104 |
|
|||
General and administrative |
|
8,934 |
|
|
6,215 |
|
|
24,769 |
|
|
17,780 |
|
|||
Total operating expenses |
|
31,252 |
|
|
24,504 |
|
|
88,571 |
|
|
72,292 |
|
|||
Loss from operations |
|
(21,558 |
) |
|
(16,395 |
) |
|
(59,288 |
) |
|
(44,950 |
) |
|||
Other income: | |||||||||||||||
Change in fair value of warrant liability |
|
12,773 |
|
|
(9,272 |
) |
|
20,819 |
|
|
11,035 |
|
|||
Interest and dividend income |
|
60 |
|
|
58 |
|
|
78 |
|
|
497 |
|
|||
Other income (expense) |
|
- |
|
|
(13 |
) |
|
- |
|
|
482 |
|
|||
Net loss | $ |
(8,725 |
) |
$ |
(25,622 |
) |
$ |
(38,391 |
) |
$ |
(32,936 |
) |
|||
Net loss: | |||||||||||||||
Basic | $ |
(8,725 |
) |
$ |
(25,622 |
) |
$ |
(38,391 |
) |
$ |
(32,936 |
) |
|||
Diluted | $ |
(8,725 |
) |
$ |
(25,622 |
) |
$ |
(46,437 |
) |
$ |
(53,243 |
) |
|||
Net loss per share: | |||||||||||||||
Basic | $ |
(0.07 |
) |
$ |
(0.23 |
) |
$ |
(0.32 |
) |
$ |
(0.29 |
) |
|||
Diluted | $ |
(0.07 |
) |
$ |
(0.23 |
) |
$ |
(0.38 |
) |
$ |
(0.47 |
) |
|||
Shares used in computing net loss per share: | |||||||||||||||
Basic |
|
133,056 |
|
|
112,557 |
|
|
121,591 |
|
|
112,505 |
|
|||
Diluted |
|
133,056 |
|
|
112,557 |
|
|
122,482 |
|
|
113,991 |
|
Reconciliation of GAAP Net Loss to Adjusted Net Loss | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
2022 |
2021 (As Restated) |
2022 |
2021 (As Restated) |
|||||||||||||
Net loss | $ |
(8,725 |
) |
$ |
(25,622 |
) |
$ |
(38,391 |
) |
$ |
(32,936 |
) |
||||
Add: Change in fair value of warrant liability |
|
(12,773 |
) |
|
9,272 |
|
|
(20,819 |
) |
|
(11,035 |
) |
||||
Adjusted net loss | $ |
(21,498 |
) |
$ |
(16,350 |
) |
$ |
(59,210 |
) |
$ |
(43,971 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220520005450/en/
Tel: 858-369-7104
investor@meipharma.com
Tel: 619-849-6005
jason.spark@canalecomm.com
Source:
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