Executive Summary

Q1 FY2025 produced no revenue and a net loss of $8.0M with diluted EPS of $(1.20), reversing the prior-year quarter’s noncash revenue recognition and net income tied to the Kyowa Kirin termination accounting .
Cash, cash equivalents, and short-term investments were $26.9M, with no debt, and management indicated liquidity sufficient to fund operations for at least the next 12 months, aided by cash-preservation measures and a reduction-in-force .
MEI discontinued clinical development of voruciclib and subsequently sold ME-344 to Aardvark Therapeutics for $0.5M upfront plus up to $62.0M in regulatory and commercial milestones, while continuing to evaluate strategic alternatives with Oppenheimer as advisor .
Wall Street consensus estimates via S&P Global were unavailable for MEIP this quarter; therefore, no beat/miss analysis can be provided relative to estimates (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

Liquidity remained intact: $26.9M cash and investments with no debt; management expects this to cover operations for at least the next 12 months, providing runway while strategic alternatives are explored .
Cost actions underway: staged reduction-in-force and lease termination reduced ongoing obligations; Q1 recorded termination benefits of $3.1M accrued (part of an expected ≤$6.0M program), aligning OpEx with a smaller operating footprint .
Portfolio rationalization: ME-344 divestiture secured immediate cash and significant milestone potential (up to $62.0M), reducing future internal development spend and liabilities on transferred contracts .
- “We believe that voruciclib in combination with venetoclax has potential, as a mutation-agnostic therapy, to benefit the largest number of patients with relapsed/refractory AML.” — David Urso, CEO (Q3 FY2024 PR, context for prior focus) .

What Went Wrong

Top-line reset: revenue fell to $0 versus $65.3M in Q1 FY2024, as the remaining noncash deferred revenue from the Kyowa Kirin agreement was fully recognized last year, eliminating this quarter’s revenue contribution .
P&L deterioration: net income of $56.4M in Q1 FY2024 flipped to a net loss of $8.0M in Q1 FY2025 alongside interest income falling to $0.36M (from $1.09M) on lower average balances .
Program discontinuation: voruciclib clinical development ceased; ME-344 was sold; these actions reduce future R&D optionality internally and raise execution risk to value realization through transactions .

Financial Results

Income Statement Comparison (YoY)

Metric	Q1 FY2024	Q1 FY2025
Revenue ($USD Millions)	$65.297	$0.000
Total Operating Expenses ($USD Millions)	$10.016	$8.352
Operating Income ($USD Millions)	$55.281	$(8.352)
Interest and Dividend Income ($USD Millions)	$1.094	$0.355
Net Income ($USD Millions)	$56.374	$(8.007)
Diluted EPS - Continuing Operations ($USD)	$8.46	$(1.20)
Weighted Avg Shares (Millions)	6.663	6.663

Balance Sheet and Liquidity (Prior Quarter vs Current)

Metric	FY2024 Year-End (Jun 30, 2024)	Q1 FY2025 (Sep 30, 2024)
Cash and Cash Equivalents ($USD Millions)	$3.705	$6.952
Short-term Investments ($USD Millions)	$34.640	$19.953
Total Current Assets ($USD Millions)	$40.769	$27.745
Total Liabilities ($USD Millions)	$8.355	$2.872
Stockholders’ Equity ($USD Millions)	$33.020	$24.878

KPIs

KPI	Q1 FY2024	Q1 FY2025
Cash Used in Operations ($USD Millions)	$(18.491)	$(11.450)
R&D Expense ($USD Millions)	$3.485	$3.163
G&A Expense ($USD Millions)	$6.531	$5.189
Other Income, net ($USD Millions)	$1.093	$0.345

Note: Segment revenue breakdown not applicable; MEI generated no commercial revenue in Q1 FY2025 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Liquidity runway	Next 12 months	Sufficient to fund operations ≥12 months (Q3 FY2024)	Sufficient to meet obligations and fund operations ≥12 months (Q1 FY2025)	Maintained
R&D expense trajectory	FY2025	Active clinical programs and expected data updates (Q3 FY2024)	R&D expected to decrease significantly due to discontinued clinical development and RIF (Q1 FY2025)	Lowered
Voruciclib program status	FY2025	Prioritized development; expansion cohorts (Q3 FY2024)	Clinical development discontinued; nonclinical activities only (Q1 FY2025)	Lowered
ME-344 program status	FY2025	New formulation R&D; potential Cohort 2 decision (Q3 FY2024)	Sold to Aardvark: $0.5M upfront + up to $62.0M milestones (Q1 FY2025)	Lowered (internal dev)
Capital returns/dividends	FY2025	Board determined not to proceed with a second capital return to conserve cash (Q3 FY2024)	No update to capital return; focus on strategic alternatives (Q1 FY2025)	Maintained (no second return)

Earnings Call Themes & Trends

Note: The quarter’s investor communications were via 8‑K and 10‑Q; no call transcript was filed among available documents this period.

Topic	Previous Mentions (Q3 FY2024)	Previous Mentions (FY2024 year-end)	Current Period (Q1 FY2025)	Trend
Strategic alternatives	Board unanimously aligned; operational focus and liquidity conservation	Confirmed continuation; Oppenheimer engaged	Reaffirmed continuation of evaluation; staged RIF ongoing	Ongoing; intensified
R&D execution	Voruciclib: AML combo anti-leukemic activity; expansion cohort opened	Nonclinical activities continued; clinical development discontinued post-July 2024	Clinical development of voruciclib halted; nonclinical activities only	Contracting
Cash management	Began Q4 with $56.6M cash; focus on extending runway	$38.3M cash at FY-end; RIF commenced to preserve cash	$26.9M as of Sept 30; liquidity sufficient ≥12 months	Lower balances; stable runway
Regulatory/legal	Kyowa Kirin termination drove FY2024 revenue recognition	Continuation of wind-down activities and disclosures	No new regulatory guidance; focus on transaction evaluation	Stable
Portfolio actions	ME-344 Cohort 1 exceeded threshold, but focus shifted to new formulation	Strategic alternatives; nonclinical activities remained	ME-344 sold to Aardvark; milestone economics retained	Monetization

Management Commentary

“Over the past several months, MEI has received encouraging clinical data for voruciclib and ME-344 supporting the further development of these programs… The clinical focus for the rest of the year will be voruciclib, our oral CDK9 inhibitor.” — David Urso, President & CEO (Q3 FY2024) .
“We believe that voruciclib in combination with venetoclax has potential, as a mutation-agnostic therapy, to benefit the largest number of patients with relapsed/refractory AML.” — David Urso (Q3 FY2024) .
Q1 FY2025 press release emphasized cash preservation, staged RIF, and that updates on strategic alternatives would only be provided upon completion or when appropriate/required .

Q&A Highlights

No Q&A section available for Q1 FY2025; investor communications consisted of the 8‑K furnished press release and the 10‑Q filing .

Estimates Context

Wall Street consensus (S&P Global) for Q1 FY2025 EPS and revenue was unavailable for MEIP; as a result, no beat/miss determination can be made relative to consensus (S&P Global data unavailable).

Key Takeaways for Investors

Liquidity of $26.9M and no debt provide ≥12 months of operational runway, giving time to pursue strategic alternatives; cash used in operations improved to $(11.45)M in Q1, reflecting early impact of cost actions .
The step-down from prior-year noncash revenue recognition to $0 revenue this quarter underscores that near-term value creation hinges on transactions (out-licensing/M&A) rather than operating earnings .
Operating discipline is tightening: R&D and G&A moderated YoY, with R&D at $3.16M and G&A at $5.19M; additional reductions expected as clinical development winds down .
Asset monetization is underway: ME-344 sale brings $0.5M upfront plus up to $62.0M in milestones, transferring certain liabilities while preserving contingent upside .
Strategic alternatives remain the core catalyst; Oppenheimer’s mandate and the simplified cost base position MEI to potentially unlock value via corporate actions .
Interest income diminished ($0.36M) on lower average balances; further declines are likely if balances continue to step down absent external financing or transactions .
Near-term trading likely driven by headlines on transaction progress, RIF completion, and any updates to asset monetization or licensing; absence of consensus estimates increases narrative sensitivity to company disclosures .

MEI Pharma, Inc. (MEIP)·Q1 2025 Earnings Summary