MEI Pharma Reports Fiscal Year 2018 Results and Operational Highlights
"We begin the 2019 fiscal year in our strongest position ever, with progress across all four clinical-stage oncology candidates, and with particular focus on the planned initiation of the ME-401 Phase 2 accelerated approval study by year-end. With ME-401 joining pracinostat as the second candidate in a global study to support marketing authorization, along with our robust cash position, we are well situated to pursue our development strategy," said Daniel
Fiscal Year 2018 and Recent Company Highlights
Financial
- In
May 2018 , the Company completed a private placement of common stock, along with warrants to purchase common stock, resulting in net proceeds to MEI of approximately$70 million . - As of June 30, 2018, MEI had $102.7 million in cash, cash equivalents and short-term investments, with no outstanding debt. The cash balance includes the proceeds of our private placement completed in
May 2018 . - Research and development expenses were $17.0 million for the year ended June 30, 2018, compared to $7.2 million for 2017. The increase was primarily related to increased activities in all clinical programs including the acquisition and development costs associated with voruciclib.
- General and administrative expenses were $9.8 million for the year ended June 30, 2018, compared to $8.6 million for 2017. The increase primarily relates to professional services expenses, share-based compensation, and general corporate expenses incurred during the year ended
June 30, 2018 . - The Company recognized revenues of $1.6 million for the year ended June 30, 2018. Revenues resulted from the recognition of fees allocated to research and development activities related to the Helsinn License Agreement. Revenue decreased due to lower levels of research and development activities during the year ended
June 30, 2018 . - Cash expenditures for operations were $21.3 million for the year ended June 30, 2018, compared to $16.5 million for 2017. Cash expenditures were $3.8 million for the fourth quarter ended June 30, 2018, compared to $3.1 million for the same period in 2017.
- Net loss was $40.1 million, or $0.97 per share, for the fiscal year ended June 30, 2018, compared to net income of $2.7 million, or $0.07 per share for 2017. The Company's net loss includes a
$9.7 million change in the fair value of the warrants issued in connection with theMay 2018 financing and$2.4 million in transaction costs related to theMay 2018 financing recorded as financing expense on the statement of operations. The Company is required to calculate the change in fair value of the warrants and record the non-cash charge to the statement of operations at each reporting date.
ME-401 - a next-generation selective oral inhibitor of PI3K delta
- In
June 2018 , the Company presented results from a Phase 1b study evaluating ME-401 in patients with relapsed/refractory follicular lymphoma, chronic lymphocytic leukemia and small lymphocytic lymphoma at the 2018American Society of Clinical Oncology (ASCO) Annual Meeting as well as theEuropean Hematology Association Congress . The data demonstrated a 90% overall objective response rate in patients. Based on these data, the Company is advancing ME-401 into a Phase 2, single-agent study for the treatment of adults with relapsed or refractory follicular lymphoma. The Phase 2 study is intended to support accelerated approval and is planned to begin around the end of 2018. - In
July 2018 the Company discussed with FDA a ME-401 monotherapy accelerated approval strategy in patients with relapsed or refractory follicular lymphoma (FL). The FDA communicated support for the Company's proposed randomized Phase 2 trial evaluating continuous and intermittent dosing schedules. Accelerated approval of ME-401 will be subject to FDA review of the improvement provided by ME-401 over other therapies available at the time of the regulatory action. - MEI expects to report data updates from the Phase 1b study, including at a medical meeting late in Q4 2018. By year-end 2018, MEI also plans to initiate the Phase 2 study to support accelerated approval of ME-401 in relapsed or refractory follicular lymphoma.
Pracinostat - an oral HDAC inhibitor (partnered with
- In January 2018, the
European Medicines Agency granted Orphan Drug Designation to pracinostat, currently in a Phase 3 study in combination with azacitidine for the treatment of acute myeloid leukemia (AML) in adult patients unfit for induction chemotherapy. - In
May 2018 , the Company andHelsinn announced a successful interim analysis from the Phase 2 study evaluating the combination of pracinostat and azacitidine in high and very high-risk myelodysplastic syndrome (MDS) patients previously untreated with hypomethylating agents. Based on the successful planned interim analysis, the study expanded open-label enrollment to 60 patients. MEI is responsible for the conduct of the Phase 2 study, the cost of which will be shared byHelsinn .Helsinn is responsible for funding any further studies. - MEI expects to provide updates to the pracinostat program at a medical meeting late in Q4 2018.
Voruciclib - an oral, selective CDK inhibitor with robust CDK9 inhibition
- In January 2018, the
U.S. Food and Drug Administration cleared the Company's Investigational New Drug Application (IND) for voruciclib. - MEI expects to report updates regarding the ongoing Phase 1 study, and the initiation of dosing of voruciclib in combination with VENCLEXTA® (venetoclax) in relapsed or refractory B-cell malignancies, at medical meetings in 2019.
ME-344 - a novel mitochondrial inhibitor
- In
June 2018 , the Company presented interim results from an investigator-initiated Phase 1 study in HER2 negative breast cancer in combination with bevacizumab (marketed as Avastin®) at ASCO. ME-344 in combination with Avastin demonstrated inhibition of tumor proliferation as measured by Ki-67 reductions in HER2 negative breast cancer patients. These results support continuation of the ongoing Phase 1 study. - MEI expects to report additional data from the investigator-sponsored Phase 1 study at medical meetings in 2019.
Operational Highlights
- In
February 2018 , the Company announced the appointment of industry veteran
Frederick W. Driscoll to the board of directors.
Mr. Driscoll serves on the audit committee. - In
July 2018 , the Company announced that
David M. Urso , J.D., senior vice president of corporate development and general counsel, was promoted to chief operating officer.
Mr. Urso is also continuing as the Company's general counsel and head of corporate development.
Conference Call and Webcast
MEI Pharma will host a conference call with simultaneous webcast today, August 30, 2018, at 5:00 p.m. Eastern time to provide a corporate update. To access the live call, please dial (866) 939-3921 (
About MEI Pharma
Under
|
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BALANCE SHEETS |
|||
(In thousands, except per share amounts) |
|||
|
|||
2018 |
2017 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 13,309 |
$ 8,458 |
|
Short-term investments |
89,434 |
45,107 |
|
Total cash, cash equivalents and short-term investments |
102,743 |
53,565 |
|
Prepaid expenses and other current assets |
1,586 |
1,758 |
|
Total current assets |
104,329 |
55,323 |
|
Intangible assets, net |
296 |
331 |
|
Property and equipment, net |
32 |
50 |
|
Total assets |
|
$ 55,704 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 3,643 |
$ 585 |
|
Accrued liabilities |
3,454 |
3,285 |
|
Deferred revenues |
788 |
996 |
|
Total current liabilities |
7,885 |
4,866 |
|
Warrant liability |
46,313 |
- |
|
Total liabilities |
54,198 |
4,866 |
|
Commitments and contingencies (Note 9) |
|||
Stockholders' equity: |
|||
Preferred stock, |
- |
- |
|
Common stock, |
- |
- |
|
Additional paid-in-capital |
264,858 |
225,169 |
|
Accumulated deficit |
(214,399) |
(174,331) |
|
Total stockholders' equity |
50,459 |
50,838 |
|
Total liabilities and stockholders' equity |
|
$ 55,704 |
STATEMENTS OF OPERATIONS (In thousands, except per share amounts) |
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Years Ended |
||||||
2018 |
2017 |
2016 |
||||
Revenues: |
||||||
License revenue |
$ - |
|
$ - |
|||
Research and development revenue |
1,622 |
2,369 |
- |
|||
1,622 |
23,249 |
- |
||||
Operating expenses: |
||||||
Cost of research and development revenue |
3,383 |
5,000 |
- |
|||
Research and development |
17,038 |
7,237 |
13,403 |
|||
General and administrative |
9,787 |
8,628 |
7,601 |
|||
Total operating expenses |
30,208 |
20,865 |
21,004 |
|||
(Loss) income from operations |
(28,586) |
2,384 |
(21,004) |
|||
Other income (expense): |
||||||
Change in fair value of warrant liability |
(9,705) |
- |
- |
|||
Financing costs associated with warrants |
(2,367) |
- |
- |
|||
Interest and dividend income |
591 |
287 |
143 |
|||
Income tax expense |
(1) |
(1) |
(1) |
|||
Net (loss) income |
|
$ 2,670 |
|
|||
Net (loss) income per share, basic |
$ (0.97) |
$ 0.07 |
$ (0.61) |
|||
Net (loss) income per share, diluted |
$ (0.97) |
$ 0.07 |
$ (0.61) |
|||
Shares used in computing net (loss) income per share: |
||||||
Basic |
41,431 |
36,813 |
34,400 |
|||
Diluted |
41,431 |
36,938 |
34,400 |
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