EPS of $-0.39 increased by 71.5% from previous year
Net income of -2.57M
"N/A" - N/A
MEI Pharma Inc (MEIP) QQ3 2025 Financial Analysis: Narrow Losses, Robust Liquidity, and Pipeline Catalysts in Biotech
Executive Summary
MEI Pharma reported a Q3 2025 net loss of $2.57 million with no revenue, consistent with a development-stage biotechnology company that funds its clinical programs through ongoing operating spend. The quarter’s operating expenses totaled $2.774 million, comprised of R&D of $0.369 million and G&A of $2.405 million, resulting in an EBITDA of -$2.774 million and an EPS of -$0.39. Cash burn from operations stood at $3.27 million for the quarter, driving the cash balance to $20.47 million at period end; the company maintains a comfortable liquidity position with a current ratio of 16.78 and no outstanding debt. The balance sheet shows total assets of $20.78 million and stockholders’ equity of $19.54 million, underscoring a durable balance sheet even as the company carries a substantial accumulated deficit ($-401.48 million).\n\nFrom a forward-looking perspective, MEI continues to advance its pipeline, including Zandelisib (PI3K delta inhibitor) and Voruciclib (CDK9 inhibitor), with MEI344 (mitochondrial inhibitor) and Pracinostat (HDAC inhibitor) remaining strategic assets. While management did not provide formal revenue guidance or quarterly guidance in QQ3 2025, the near-term value propositions hinge on pipeline-readouts, top-line data readouts, and potential strategic partnerships that could monetize assets. Near-term cash runway, based on the quarterly burn rate, is approximately 1.5 years assuming no material new financing or revenue generation. Investors should monitor key clinical catalysts, any partnering announcements, and the evolution of the company’s operating expense trajectory as potential stock catalysts.
Key Performance Indicators
Operating Income
-2.77M
QoQ: 19.62% | YoY:71.78%
Net Income
-2.57M
QoQ: 3.88% | YoY:71.82%
EPS
-0.39
QoQ: 2.50% | YoY:71.53%
Revenue Trend
Margin Analysis
Key Insights
Operating metrics show no revenue this quarter; Revenue: N/A; Gross Profit: N/A. - Operating Income: -$2.774 million; QoQ change: +19.62%; YoY change: +71.78% (benchmarks reflect quarterly progression from prior period). - Net Income: -$2.573 million; QoQ: +3.88%; YoY: +71.82%. - EPS: -$0.39; QoQ: +2.50%; YoY: +71.53%. - R&D expenses: $0.369 million; G&A expenses: $2.405 million; Total operating expenses: $2.774 million. - Net cash provided by operating activities: -$3.267 million; Free cash flow: -$3.267 million. - Cash and cash equivalents at period end: $20.472 million; Total assets: $20.779 million; Total liabilities: $1.238 million; Stockholders’ equity: $19.541 million. - Current ratio: 16.78; Quick ratio: 16.78; Cash ratio: 16.54. - Weighted average shares outstanding: 6.663 million. - Net debt: -$20.472 million (net cash position).
Financial Highlights
- Operating metrics show no revenue this quarter; Revenue: N/A; Gross Profit: N/A. - Operating Income: -$2.774 million; QoQ change: +19.62%; YoY change: +71.78% (benchmarks reflect quarterly progression from prior period). - Net Income: -$2.573 million; QoQ: +3.88%; YoY: +71.82%. - EPS: -$0.39; QoQ: +2.50%; YoY: +71.53%. - R&D expenses: $0.369 million; G&A expenses: $2.405 million; Total operating expenses: $2.774 million. - Net cash provided by operating activities: -$3.267 million; Free cash flow: -$3.267 million. - Cash and cash equivalents at period end: $20.472 million; Total assets: $20.779 million; Total liabilities: $1.238 million; Stockholders’ equity: $19.541 million. - Current ratio: 16.78; Quick ratio: 16.78; Cash ratio: 16.54. - Weighted average shares outstanding: 6.663 million. - Net debt: -$20.472 million (net cash position).
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-2.77M
71.78%
19.62%
Net Income
-2.57M
71.82%
3.88%
EPS
-0.39
71.53%
2.50%
Key Financial Ratios
currentRatio
16.78
returnOnAssets
-12.4%
returnOnEquity
-13.2%
operatingCashFlowPerShare
$-0.49
freeCashFlowPerShare
$-0.49
priceToBookRatio
0.75
priceEarningsRatio
-1.42
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Due to the absence of an earnings call transcript in the provided data, there are no management quotes to quote directly. If/when transcript access is available, a synthesis would group insights by themes such as strategy (pipeline priorities and partnering/tipeline monetization), operations (cost discipline and R&D allocation), and market conditions (competitive landscape in oncology and potential regulatory milestones).
N/A
— N/A
N/A
— N/A
Forward Guidance
No formal revenue or quarterly guidance was issued for QQ3 2025. Management emphasis remains on advancing the clinical pipeline, with Zandelisib (PI3K delta inhibitor) and Voruciclib (CDK9 inhibitor) representing near-term value levers through potential trial readouts and collaborations. Investors should monitor: (1) upcoming clinical data readouts and safety signals for core assets; (2) any licensing, collaboration, or out-licensing activity that could monetize MEI’s assets; (3) changes in operating burn and the company’s ability to extend runway through partnerships or financing. Given the current quarterly burn of about $3.27 million and a cash balance of ~$20.5 million, the approximate cash runway is ~6 quarters (about 1.5 years) absent new funding or revenue. Key risk factors include clinical trial risk, partner dynamics, regulatory timelines, and the broader biotech capital market environment.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
MEIP Focus
0.00%
0.00%
-13.20%
-1.42%
ELDN
0.00%
0.00%
1.01%
42.00%
KZR
0.00%
0.00%
-15.20%
-69.41%
NXTC
0.00%
0.00%
-15.30%
-83.00%
VSTM
0.00%
0.00%
-2.17%
-1.26%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
MEI Pharma operates as a developmental-stage biotech with no revenue in QQ3 2025 but maintains a solid liquidity runway to support ongoing trials and pipeline advancement. The primary near-term catalyst depends on clinical data readouts and any strategic partnerships that could monetize assets. The stock remains high-risk with a sizeable accumulated deficit and reliance on external funding; however, the absence of debt and robust cash position provide optionality for advancing key programs. The investment thesis hinges on successful readouts, favorable safety/efficacy signals, and/or valuable licensing deals that could convert pipeline value into tangible milestones or revenue streams. Investors should closely track upcoming trial results, partner conversations, and any debt or equity financings that could impact equity risk and dilution.
Key Investment Factors
Growth Potential
Pipeline optionality across Zandelisib, Voruciblib, ME344, and Pracinostat provides multiple avenues for value realization through data readouts and potential partnerships. Licensing deals and collaborations (e.g., Kyowa Kirin, BeiGene, Helsinn, Presage) create optionality for milestone payments and revenue sharing if assets progress. The company’s balance sheet supports continued development without immediate equity dilution, given a cash balance of ~$20.5M and no debt.
Profitability Risk
Clinical development risk remains paramount; no revenue generation in QQ3 2025 increases sensitivity to financing and partnership outcomes. Negative retained earnings reflect a long history of losses. Potential dilution risk persists if new financing becomes necessary to extend trial life or fund late-stage studies. Competitive oncology landscape and regulatory hurdles could impact timelines and market adoption.
Financial Position
Strong liquidity with $20.47M cash and no debt, current ratio 16.78, and stockholders’ equity of $19.54M. Net cash position of -$20.47M indicates substantial liquidity cushion. However, the company carries a large accumulated deficit ($-401.48M), underscoring ongoing reliance on external funding and partnerships to support pipeline advancement.
SWOT Analysis
Strengths
Strong liquidity position with $20.47M cash and no debt; current ratio of 16.78 indicating ample short-term liquidity.
Diversified development pipeline with assets in immuno-oncology and cancer metabolism (Zandelisib, Voruciclib, ME344, Pracinostat).
Strategic licensing and collaboration framework (Kyowa Kirin, BeiGene, Helsinn, Presage) that can unlock capital and validation without immediate revenue pressure.
Weaknesses
No product revenue in QQ3 2025; ongoing dependence on external funding to sustain operations.
Significant accumulated deficit (retained earnings: -$401.476M) and negative earnings per share, highlighting long-run profitability challenges.
Limited near-term visibility on major catalysts or data readouts without disclosed guidance.
Low near-term revenue upside increases valuation sensitivity to clinical outcomes and partnership outcomes.
Opportunities
Potential upside from upcoming trial readouts for Zandelisib, Voruciclib, ME344, and Pracinostat; potential licensing deals or milestone payments.
Strategic partnerships could monetize assets and extend cash runway while de-risking development costs.
Continued expansion of collaborations may improve evidence generation and validation in the oncology space.
Threats
Clinical trial risk including efficacy/safety signals that could alter development timelines.
Regulatory risk and potential delays in readouts or approvals for flagship programs.
Competition from other PI3K inhibitors and emerging therapies in follicular lymphoma and B-cell malignancies.
Financing risk if partnerships or data milestones fail to materialize, potentially affecting share count and equity valuations.