MEI Pharma, Inc. (Nasdaq: MEIP) reported significant financial challenges in its 10-Q filing for the quarter ended September 30, 2024. The company experienced a total revenue of $0, a stark decline from $65,297 in the same period of 2023. This drop was primarily attributed to the termination of the KKC Commercialization Agreement, which had previously contributed to revenue. The company recognized no revenue from this agreement during the current quarter, compared to $64.5 million recognized in the prior year.
The net loss for the quarter was $(8.0 million), a reversal from a net income of $56.4 million in the same period last year. This resulted in a net loss per share of $(1.20), compared to a net income per share of $8.46 in 2023. Total operating expenses decreased to $8.4 million from $10.0 million year-over-year, reflecting cost-cutting measures amid ongoing strategic reviews.
As of September 30, 2024, MEI Pharma's cash and cash equivalents stood at $6.9 million, up from $3.7 million at the end of June 2024. However, total current assets decreased to $27.7 million from $40.8 million, while total assets fell to $27.8 million from $41.4 million. The company’s total stockholders’ equity also declined to $24.9 million from $33.0 million.
Strategically, MEI Pharma announced on July 22, 2024, that it was evaluating strategic alternatives, including potential transactions or an orderly wind-down of operations. This led to a reduction-in-force initiated on August 1, 2024, resulting in significant leadership changes, including the departure of CEO David M. Urso and CMO Richard Ghalie, M.D. Justin J. File was appointed as Acting CEO.
In terms of clinical development, the company has halted ongoing clinical trial efforts for its lead candidate, voruciclib, following the strategic review announcement. Voruciclib, an oral CDK9 inhibitor, had recently completed a Phase 1 trial for acute myeloid leukemia (AML) but is now in a state of uncertainty regarding its future development.
Additionally, MEI Pharma completed the sale of its rights to ME-344 to Aardvark Therapeutics, Inc. on October 22, 2024, for an initial payment of $0.5 million, with potential future milestone payments of up to $62 million. The company continues to face accumulated losses of $396.2 million since inception and anticipates ongoing operating losses and negative cash flows for the foreseeable future.
About MEI Pharma, Inc.
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