Executive Summary

MEI Pharma reported Q2 FY2025 (quarter ended December 31, 2024) with no revenue, a sharply reduced operating expense base ($3.45M vs $11.93M YoY), and a materially narrower net loss of $2.68M (EPS $(0.40)), reflecting aggressive cost controls and a $0.5M gain on asset disposition .
Cash and cash equivalents were $23.7M at quarter-end, with no debt; short-term investments were moved off the balance sheet (Q1 had $19.95M), indicating liquidity centralization as the strategic alternatives review continues .
Management reiterated the ongoing evaluation of strategic alternatives (including out-licensing and M&A) and the staged reduction-in-force as part of cash preservation; no quantitative guidance was provided .
Street estimates from S&P Global were not available for MEIP this quarter; with no call transcript and limited coverage, near-term stock catalysts hinge on any update regarding a transaction or wind-down plan [GetEstimates unavailable; see Estimates Context] .

What Went Well and What Went Wrong

What Went Well
- Operating expenses fell to $3.45M versus $11.93M in Q2 FY2024 and $8.35M in Q1 FY2025, led by R&D ($0.31M) and G&A ($3.14M), materially reducing burn .
- Net loss narrowed to $2.68M vs $11.06M YoY, aided by lower opex and a $0.5M gain on disposition of a non-financial asset .
- Liquidity remains: $23.7M in cash and cash equivalents at 12/31/24; zero debt .
What Went Wrong
- No revenue and no operating pipeline contributions; R&D spending dropped to $0.31M, underscoring de-prioritized clinical execution amid strategic review .
- No guidance or earnings call transcript limits visibility; investors are reliant on press releases for updates .
- Ongoing strategic review and reduction-in-force reflect uncertainty; management cautioned there can be “no assurance” of a successful transaction or favorable terms .

Metric	Q2 FY2024 (Dec 31, 2023)	Q1 FY2025 (Sep 30, 2024)	Q2 FY2025 (Dec 31, 2024)
Revenue ($M)	$0.00	$0.00	$0.00
R&D Expense ($M)	$3.91	$3.16	$0.31
G&A Expense ($M)	$8.02	$5.19	$3.14
Total Operating Expenses ($M)	$11.93	$8.35	$3.45
Interest & Dividend Income ($M)	$0.87	$0.36	$0.28
Gain on Disposition ($M)	$0.00	$0.00	$0.50
Net (Loss) Income ($M)	$(11.06)	$(8.01)	$(2.68)
Diluted EPS ($)	$(1.66)	$(1.20)	$(0.40)
Weighted Avg Shares (M)	6.663	6.663	6.663

Balance sheet and liquidity

Metric	Dec 31, 2023	Sep 30, 2024	Dec 31, 2024
Cash & Equivalents ($M)	$5.17	$6.95	$23.74
Short-term Investments ($M)	$54.31	$19.95	$0.00
Total Current Assets ($M)	$66.17	$27.75	$24.39
Total Current Liabilities ($M)	$8.04	$2.87	$2.29
Stockholders’ Equity ($M)	$59.49	$24.88	$22.10

Notes:

YoY loss improvement was driven by significant opex reductions; QoQ improvement reflects continued expense cuts and a $0.5M gain on asset disposition .
Liquid assets transitioned from investments to cash, likely to simplify and centralize liquidity during the strategic review .

No segment reporting or KPIs were disclosed beyond cash and expense levels .

Metric	Period	Previous Guidance	Current Guidance	Change
All metrics	FY2025	None provided	None provided	Maintained: no guidance

Management provided no quantitative guidance; disclosures focused on strategic alternatives and cash preservation .

No Q2 FY2025 earnings call transcript was available; themes below draw from company press releases.

Topic	Previous Mentions (Q2 FY2024 and Q1 FY2025)	Current Period (Q2 FY2025)	Trend
Strategic alternatives / M&A, out-licensing	Not present in Q2 FY2024; process initiated July 2024 and reaffirmed in Q1 FY2025 .	Review ongoing; Oppenheimer advising; no assurance of outcome .	Ongoing, central to narrative.
Cost actions / RIF	Q2 FY2024 showed lower opex vs prior year . RIF commenced Aug 1, 2024; Q1 FY2025 reiterated staged RIF .	Continued staged RIF and cash preservation .	Accelerating cost containment.
R&D execution / pipeline	Q2 FY2024 highlighted voruciclib and ME-344 progress . Later FY2024: discontinued voruciclib clinical dev; non-clinical work ongoing .	Minimal R&D expense ($0.31M), indicating de-prioritized clinical activities .	Deprioritization amid review.
Liquidity/runway	Q3 FY2024 said cash sufficient ≥12 months .	$23.7M cash; investments moved into cash; no debt .	Liquidity preserved; structure simplified.
Activism/legal	Risk factor references to activist investors in disclosures .	Activist risk mentioned in forward-looking statements .	Continued governance overhang.

“The Company is continuing its review and evaluation of potential strategic alternatives… such as out-licensing opportunities for existing programs and merger and acquisition opportunities” .
“During the first half of fiscal year 2025, the Company commenced cash preservation efforts that include a reduction-in-force, which will continue in stages as the Company’s operational and strategic direction evolves” .
“There can be no assurance the exploration of strategic alternatives will result in any agreements or transactions, or… be successful or on attractive terms” .

No earnings call transcript was available for Q2 FY2025; the company communicated via press release and 8-K only [ListDocuments showed no MEIP earnings-call-transcript; search returned none].
No additional clarifications beyond press release narrative on strategic alternatives and cash preservation .

Wall Street consensus estimates (S&P Global) for Q2 FY2025 EPS and revenue were unavailable for MEIP at the time of analysis; S&P Global mapping for the ticker was not present, indicating limited or no analyst coverage through that data source. As a result, no versus-consensus comparisons can be provided this quarter.
Investors should assume estimate models, where they exist, focus on cash burn and potential transaction outcomes rather than revenue/EPS (no revenue reported in recent quarters) .

The thesis is now predominantly binary/event-driven: outcome of strategic alternatives (asset sale, out-licensing, merger, or wind-down) will likely be the primary stock catalyst near term .
Burn has been aggressively reduced (opex $3.45M in Q2 vs $11.93M YoY), extending optionality while the process plays out; a $0.5M asset sale boosted results .
Liquidity stands at $23.7M cash with no debt; short-term investments were liquidated into cash, simplifying the balance sheet for flexibility .
Limited disclosures (no guidance, no call) and explicit caution on the process outcome keep visibility low; governance/activist dynamics remain a risk factor .
With no operating revenue, upside scenarios depend on value realized from assets or corporate actions; downside centers on a potential wind-down if no transaction is achieved, per management’s caution .
Tactically, trade around formal updates on the strategic review; absence of updates can prolong a range-bound drift, while any transaction announcement could catalyze re-pricing.

Additional source documents read:

Q1 FY2025 cash position press release (for trend and liquidity) .
FY2024 cash position press release (context on strategic alternatives commencement and RIF start) .
Q2 FY2024 and Q3 FY2024 8-Ks (historical opex, pipeline context, and prior runway commentary) .