MEI Pharma Inc

Previous wording

Unless the context requires otherwise, references in this Annual Report to “MEI Pharma,” “MEI,” “we,” “us” and “our” refer to MEI Pharma, Inc.

Current wording

Unless the context requires otherwise, references in this Quarterly Report to “MEI Pharma,” “MEI,” “we,” “us” and “our” refer to MEI Pharma, Inc.

Previous wording

Research and development costs decreased by $3.6 million to $0.3 million for the three months ended December 31, 2024 compared to $3.9 million for the three months ended December 31, 2023. Research and development costs decreased compared to the same period in 2023 as a result of our announcement in July 2024 to explore strategic alternatives, at which time all clinical studies were ceased resulting in a reduction of close out costs and we initiated reductions in our workforce.

Current wording

Research and development costs decreased by $4.9 million to $0.4 million for the three months ended March 31, 2025 compared to $5.2 million for the three months ended March 31, 2024. This decrease was a result of our announcement in July 2024 to explore strategic alternatives, at which time all clinical studies were ceased resulting in a reduction of close out costs and we initiated reductions in our workforce, along with the ME-344 Sale.

Previous wording

General and Administrative: General and administrative expenses decreased by $6.2 million to $8.3 million for the six months ended December 31, 2024 compared to $14.5 million for the six months ended December 31, 2023. General and administrative costs decreased compared to the same period in 2023 primarily as a result of our announcement in July 2024 to explore strategic alternatives, at which time all administrative support activities related to clinical studies were ceased, including reduced payroll and related costs from further reductions in our workforce totaling approximately $0.7 million, and the reduction in legal and professional fees of approximately $4.2 million associated with various stockholder related items from the prior fiscal year with no current period recurrence.

Current wording

General and Administrative: General and administrative expenses decreased by $2.2 million to $2.4 million for the three months ended March 31, 2025 compared to $4.6 million for the three months ended March 31, 2024. This decrease was primarily a result of reduced facility and related costs of $1.1 million associated with the termination of our lease and our announcement in July 2024 to explore strategic alternatives, at which time all administrative support activities related to clinical studies were ceased, including reduced payroll and related costs from further reductions in our workforce.

Previous wording

Other Income, net: Other income, net, decreased by $0.1 million to $0.8 million for the three months ended December 31, 2024 compared to $0.9 million for the three months ended December 31, 2023. The decrease in other income, net was due to lower average investment balances partially offset by a gain recognized on the sale of our ME-344 asset.

Current wording

Other Income, net: Other income, net, decreased by $0.5 million to $0.2 million for the three months ended March 31, 2025 compared to $0.7 million for the three months ended March 31, 2024. The decrease in other income, net, was due to lower average investment balances.

Previous wording

Revenue: During the six months ended December 31, 2024, we recognized no revenue due to all deferred revenue associated with the KKC Commercialization Agreement having been recognized in fiscal year 2024, upon entry into the Termination Agreement. During the six months ended December 31, 2023, we recognized revenue of $65.3 million from the KKC Commercialization Agreement.

Current wording

Revenue: During the nine months ended March 31, 2025, we recognized no revenue due to all deferred revenue associated with the KKC Commercialization Agreement having been recognized in fiscal year 2024, upon entry into the Termination Agreement. During the nine months ended March 31, 2024, we recognized revenue of $65.3 million from the KKC Commercialization Agreement.

Previous wording

Research and development costs decreased by $3.9 million to $3.5 million for the six months ended December 31, 2024 compared to $7.4 million for the six months ended December 31, 2023. Research and development costs primarily decreased compared to the same period in 2023 as a result of our announcement in July 2024 to explore strategic alternatives, at which time all clinical studies were ceased and we initiated reductions in our workforce. These decreases were partially offset by increased costs associated with voruciclib mainly due to greater recognized manufacturing and clinical costs in the Phase 1 study prior to the July 2024 announcement to explore strategic alternatives and increased costs associated with nonclinical studies costs.

Current wording

Research and development costs decreased by $8.8 million to $3.8 million for the nine months ended March 31, 2025 compared to $12.6 million for the nine months ended March 31, 2024. This decrease was as a result of our announcement in July 2024 to explore strategic alternatives, at which time all clinical studies were ceased and we initiated reductions in our workforce. These decreases were partially offset by increased costs associated with voruciclib mainly due to greater recognized manufacturing and clinical expenditures in the Phase 1 study prior to the July 2024 announcement to explore strategic alternatives and increased costs associated with nonclinical studies.

Previous wording

General and Administrative: General and administrative expenses decreased by $4.9 million to $3.1 million for the three months ended December 31, 2024 compared to $8.0 million for the three months ended December 31, 2023. General and administrative costs decreased compared to the same period in 2023 primarily as a result of our announcement in July 2024 to explore strategic alternatives, at which time all administrative support activities related to clinical studies were ceased, including reduced payroll and related costs from further reductions in our workforce totaling approximately $1.2 million, and the reduction in legal and professional fees of approximately $2.6 million associated with various stockholder related items from the prior fiscal year with no current period recurrence.

Current wording

General and Administrative: General and administrative expenses decreased by $8.4 million to $10.7 million for the nine months ended March 31, 2025 compared to $19.2 million for the nine months ended March 31, 2024. This decrease was primarily a result of reduced legal and professional fees of $4.3 million due to various stockholder related items from the prior fiscal year with no current period recurrence. Facility and related costs decreased $2.3 million associated with the termination of our lease and our announcement in July 2024 to explore strategic alternatives, at which time all administrative support activities related to clinical studies were ceased. Payroll and related costs decreased $1.6 million due to reductions in our workforce.

Previous wording

Other Income, net: Other income, net, decreased by approximately $0.8 million to $1.1 million for the six months ended December 31, 2024 compared to $2.0 million for the six months ended December 31, 2023. The decrease in other income, net was due to lower average investment balances partially offset by a gain recognized on the sale of our ME-344 asset.

Current wording

Other Income, net: Other income, net, decreased by approximately $1.4 million to $1.3 million for the nine months ended March 31, 2025 compared to $2.7 million for the nine months ended March 31, 2024. The decrease in other income, net, was due to lower average investment balances partially offset by a gain recognized on the sale of our ME-344 asset.

Previous wording

To date, we have obtained cash and funded our operations primarily through equity financings and license agreements. There can be no assurance that we will be able to continue to raise additional capital in the future. We have accumulated losses of $398.9 million since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future. As of December 31, 2024, we had $23.7 million in cash and cash equivalents. On July 22, 2024, we announced that our Board had determined unanimously to begin the evaluation of our strategic alternatives, including potential transactions as well as an orderly wind down of operations, if appropriate, to maximize the value of our assets for our stockholders. In connection with the exploration of strategic alternatives, we initiated the Strategic Alternatives RIF to reduce headcount on August 1, 2024 and discontinued the clinical development of voruciclib. As a result of this announcement, we expect our research and development expenses to decrease significantly as we discontinued our clinical research and development activities along with decreased general and administrative costs as we reduce headcount and other operational expenses that supported research and development activities. We will continue to incur research and development expenses in connection with clinical trial closing costs and the completion of certain ongoing nonclinical activities. We believe our cash balance is sufficient to fund operations for at least the next 12 months.

Current wording

To date, we have obtained cash and funded our operations primarily through equity financings and license agreements. There can be no assurance that we will be able to continue to raise additional capital in the future. We have accumulated losses of $401.5 million since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future. As of March 31, 2025, we had $20.5 million in cash and cash equivalents. On July 22, 2024, we announced that our Board had determined unanimously to begin the evaluation of our strategic alternatives, including potential transactions as well as an orderly wind down of operations, if appropriate, to maximize the value of our assets for our stockholders. In connection with the exploration of strategic alternatives, we initiated the Strategic Alternatives RIF to reduce headcount on August 1, 2024 and discontinued the clinical development of voruciclib. As a result of this announcement, we expect our research and development expenses to decrease significantly as we discontinued our clinical research and development activities along with decreased general and administrative costs as we reduce headcount and other operational expenses that supported research and development activities. We will continue to incur research and development expenses in connection with clinical trial closing costs and the completion of certain ongoing nonclinical activities. We believe our cash balance is sufficient to fund operations for at least the next 12 months.

Previous wording

Net cash used in operating activities for the six months ended December 31, 2024 of $15.1 million consisted of our net loss of $10.7 million, $4.3 million in changes in our operating assets and $0.1 million for noncash items. Net cash used in operating activities for the six months ended December 31, 2023 of $29.5 million consisted of our net income of $45.3 million and $2.1 million in noncash items offset by changes in our operating assets and liabilities of $77.0 million primarily due to recognition of $64.9 million in deferred revenue.

Current wording

Net cash used in operating activities for the nine months ended March 31, 2025 of $18.4 million consisted of our net loss of $13.3 million, $5.0 million in changes in our operating assets and $0.1 million for noncash items. Net cash used in operating activities for the nine months ended March 31, 2024 of $32.5 million consisted of our net income of $36.2 million and $3.3 million in noncash items offset by changes in our operating assets and liabilities of $71.9 million primarily due to recognition of $64.9 million in deferred revenue.

Previous wording

Net cash provided by investing activities for the six months ended December 31, 2024 was $35.2 million as compared to $29.5 million net cash provided by investing activities for the six months ended December 31, 2023. The change in net cash provided by investing activities was primarily due to more net short-term investment activity during the six months ended December 31, 2024 and the proceeds recognized on the disposition of a non-financial asset with no similar transaction in the prior period.

Current wording

Net cash provided by investing activities for the nine months ended March 31, 2025 was $35.2 million as compared to $29.6 million net cash provided by investing activities for the nine months ended March 31, 2024. The change in net cash provided by investing activities was primarily due to more net short-term investment activity during the nine months ended March 31, 2025 and the proceeds recognized on the disposition of a non-financial asset with no similar transaction in the prior period.

Previous wording

During the six months ended December 31, 2024, we had no financing activities. Net cash used in financing activities for the six months ended December 31, 2023 was $11.7 million due to the payment of dividends agreed to under the Cooperation Agreement.

Current wording

During the nine months ended March 31, 2025, we had no financing activities. Net cash used in financing activities for the nine months ended March 31, 2024 was $11.7 million due to the payment of dividends agreed to under the Cooperation Agreement.