MEI Pharma Reports Second Quarter Fiscal Year 2018 Results
SAN DIEGO, Feb. 8, 2018 /PRNewswire/ -- MEI Pharma, Inc. (Nasdaq: MEIP), an oncology company focused on the clinical development of novel therapies for cancer, today reported results for its second quarter ended December 31, 2017.
"We continue to build on the progress we reported last quarter with important advances in the clinical development programs across our pipeline," said Daniel P. Gold, Ph.D., president and chief executive officer of MEI Pharma. "Already in 2018, the Food and Drug Administration cleared the Investigational New Drug Application for voruciclib, and pracinostat was awarded Orphan Drug Designation from the European Medicines Agency for the treatment of acute myeloid leukemia."
Dr. Gold added: "In the coming months we look forward to separate data readouts in three programs: pracinostat's stage 1 of a Phase 2 dose-optimization study in myelodysplastic syndrome (MDS); ME-401's single agent safety and efficacy in relapsed/refractory chronic lymphocytic leukemia (CLL) and follicular lymphoma (FL); and ME-344's interim results from a proof-of-concept study in combination with bevacizumab (marketed as Avastin®) in human epidermal growth factor receptor 2 (HER2) negative breast cancer. In addition, we look forward to the initiation of our Phase 1 single-agent study with voruciclib in relapsed/refractory B lymphocyte malignancies."
Recent Program Highlights
Pracinostat
-- 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 to induction chemotherapy.
MEI-401
-- In November 2017, the safety review committee found no dose limiting
toxicities in the 180mg cohort again with a response rate in excess of
50%. We determined that no further dose escalation was required and we
amended the Phase 1b study protocol to open a 45 mg lower dose cohort as
well as an additional arm to evaluate the safety and efficacy of ME-401
in combination with rituximab (marketed as Rituxan®) in patients with
various B cell malignancies.
Voruciclib
-- In January 2018, the U.S. Food and Drug Administration cleared the
company's Investigational New Drug Application (IND) for voruciclib.
Under this IND, MEI Pharma plans to initiate a Phase 1 study designed to
determine the safety, tolerability, pharmacokinetics, pharmacodynamics,
and preliminary clinical activity of voruciclib in patients with B-cell
malignancies.
-- In December 2017, a preclinical study of voruciclib was published in the
journal Nature Scientific Reports. Researchers found that the
combination of voruciclib plus the BCL-2 inhibitor venetoclax (marketed
as Venclexta(TM)) was capable of inhibiting two master regulators of
cell survival, MCL-1 and BCL-2, and achieved synergistic antitumor
efficacy in an aggressive subset of Diffuse Large B-cell Lymphoma
(DLBCL).
Upcoming Milestones
Pracinostat
-- Expecting results from stage 1 of a Phase 2 dose-optimization study in
MDS in the second quarter of 2018.
ME-401
-- Expecting results from a Phase 1b study in relapsed/refractory CLL and
FL to be presented at a scientific meeting in the second quarter of
2018.
Voruciclib
-- Expecting to initiate a Phase 1 single-agent study in
relapsed/refractory B cell malignancies and subsequently in a
combination study with venetoclax (marketed as Venclexta(TM)) in the
second quarter of 2018.
ME-344
-- Expecting interim results from the Phase 1 study in HER2 negative breast
cancer in combination with bevacizumab (marketed as Avastin®) in the
second quarter of 2018.
Financial Highlights
-- As of December 31, 2017, MEI Pharma had $42.4 million in cash, cash
equivalents and short-term investments, with no outstanding debt. The
Company believes its cash position will be sufficient to fund operations
into calendar year 2019.
-- Cash used in operating activities was $11.3 million for the six months
ended December 31, 2017, compared to cash provided by operating
activities of $5.0 million for the six months ended December 31, 2016.
Included in cash expenditures for the six months ended December 31, 2017
was $1.9 million cash paid for the acquisition of voruciclib. Included
in the cash provided by operating activities in the six months ended
December 31, 2016 was the $15.0 million upfront payment from Helsinn for
pracinostat.
-- Research and development expenses, including cost of research and
development revenue, were $4.2 million for the three months ended
December 31, 2017, compared to $3.4 million for the three months ended
December 31, 2016. The increase was primarily due to the acquisition of
voruciclib and increased costs for ME-401, offset by a reduction in
expenses related to pracinostat.
-- General and administrative expenses were $2.4 million for the three
months ended December 31, 2017, compared to $2.0 million for the three
months ended December 31, 2016. The increase was primarily due to
professional service costs incurred in the three months ended December
31, 2017 related to the Presage license agreement.
-- Revenues were $0.4 million for the three months ended December 31, 2017,
compared to $17.2 million in the three months ended December 31, 2016.
The decrease was related to activities performed pursuant to the Helsinn
license agreement.
-- Net loss was $6.1 million, or $0.16 per share, for the three months
ended December 31, 2017, compared to net income of $11.9 million, or
$0.32 per share for the three months ended December 31, 2016.
About MEI Pharma
MEI Pharma, Inc. (Nasdaq: MEIP) is a San Diego-based oncology company focused on the clinical development of novel therapies for cancer. The Company's portfolio of drug candidates includes pracinostat, an oral HDAC inhibitor that is partnered with Helsinn Healthcare, SA. Pracinostat has been granted Breakthrough Therapy Designation from the U.S. Food and Drug Administration for use in combination with azacitidine for the treatment of patients with newly diagnosed acute myeloid leukemia (AML) who are unfit for intensive chemotherapy. Pracinostat is also being developed in combination with azacitidine for the treatment of patients with high and very high-risk myelodysplastic syndrome (MDS). MEI Pharma's clinical development pipeline also includes ME-401, a highly differentiated oral PI3K delta inhibitor currently in a Phase 1b study in patients with relapsed/refractory CLL or follicular lymphoma, and voruciclib, an oral, selective CDK inhibitor shown to suppress MCL1, a known mechanism of resistance to BCL2 inhibitors. The Company is also developing ME-344, a novel mitochondrial inhibitor currently in an investigator-sponsored study in combination with bevacizumab for the treatment of HER2-negative breast cancer. Pracinostat, ME-401, ME-344 and voruciclib are investigational agents and are not approved for use in the U.S. For more information, please visit www.meipharma.com.
Under U.S. law, a new drug cannot be marketed until it has been investigated in clinical studies and approved by the FDA as being safe and effective for the intended use. Statements included 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. 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, our failure to successfully commercialize our product candidates; costs and delays in the development and/or FDA approval, or the failure to obtain such approval, of our product candidates; uncertainties or differences in interpretation in clinical trial results; our inability to maintain or enter into, and the risks resulting from our dependence upon, collaboration or contractual arrangements necessary for the development, manufacture, commercialization, marketing, sales and distribution of any products; competitive factors; our inability to protect our patents or proprietary rights and obtain necessary rights to third party patents and intellectual property to operate our business; our inability to operate our business without infringing the patents and proprietary rights of others; general economic conditions; the failure of any products to gain market acceptance; our inability to obtain any additional required financing; technological changes; government regulation; changes in industry practice; 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.
CONDENSED BALANCE SHEETS
(In thousands, except per share amounts)
December 31, June 30,
2017 2017
---- ----
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $7,339 $8,458
Short term investments 35,102 45,107
------ ------
Total cash, cash equivalents
and short-term investments 42,441 53,565
Prepaid expenses and other
current assets 772 1,758
Total current assets 43,213 55,323
Intangible assets, net 314 331
Property and equipment, net 40 50
Total assets $43,567 $55,704
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,089 $585
Accrued liabilities 3,230 3,285
Deferred revenues 890 996
Total current liabilities 5,209 4,866
Commitments and contingencies (Note 5)
Stockholders' equity:
Preferred stock, $0.01 par
value; 100 shares authorized;
none outstanding - -
Common stock, $0.00000002 par
value; 113,000 shares
authorized; 37,052 and 36,772
shares issued and outstanding
at December 31, 2017 and June
30, 2017, respectively - -
Additional paid-in-capital 227,556 225,169
Accumulated deficit (189,198) (174,331)
Total stockholders' equity 38,358 50,838
------ ------
Total liabilities and
stockholders' equity $43,567 $55,704
======= =======
MEI PHARMA, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
Revenues:
License revenue $ - $17,101 $ - $17,101
Research and development
revenue 358 98 641 1,194
Total revenues 358 17,199 641 18,295
--- ------ --- ------
Operating expenses:
Cost of research and
development revenue 728 1,771 1,346 2,865
Research and development 3,444 1,642 9,508 3,288
General and
administrative 2,358 1,970 4,846 4,650
Total operating expenses 6,530 5,383 15,700 10,803
----- ----- ------ ------
(Loss) income from
operations (6,172) 11,816 (15,059) 7,492
Other income (expense):
Interest and dividend
income 93 69 193 124
Income tax expense - - (1) (1)
Net (loss) income $(6,079) $11,885 $(14,867) $7,615
======= ======= ======== ======
Net (loss) income per
share, basic $(0.16) $0.32 $(0.40) $0.21
====== ===== ====== =====
Net (loss) income per
share, diluted $(0.16) $0.32 $(0.40) $0.21
====== ===== ====== =====
Shares used in computing net (loss) income per share:
Basic 37,414 37,172 37,390 36,460
====== ====== ====== ======
Diluted 37,414 37,217 37,390 36,501
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SOURCE MEI Pharma, Inc.
