MEI Pharma today announced that its board of directors has determined unanimously to begin evaluation of the company’s strategic alternatives, including potential transactions as well as an orderly wind down of the company, if appropriate, in order to maximize the value of its assets for its stockholders. The company intends to evaluate and engage a financial advisor to assist in this process.
In order to best preserve the company’s existing cash, the company will commence a reduction-in-force beginning as soon as practicable and continuing in stages as the company’s operational and strategic direction evolves. The company intends to promptly discontinue the clinical development of voruciclib, while certain non-clinical activities related to MEI’s drug candidate assets will continue to be conducted by the company.
Consistent with the company’s intention to preserve the cash, CEO David M. Urso and Chief Medical Officer Richard Ghalie, MD, have agreed in principle to step down, effective as of August 1, 2024. Urso will also leave the company’s board of directors at that time. The company expects to enter into consulting agreements with both Urso and Dr. Ghalie under which they will remain available to assist the company in its strategic efforts. Charles V. Baltic III, the current chairperson of the board, will also step down.
As part of the review of strategic alternatives, the company will consider options such as out-licensing opportunities for existing programs and merger and acquisition opportunities.
The board has appointed Justin “Jay” File, currently the company’s chief financial officer, to assume the position of acting CEO upon Urso’s departure to lead the company through this period of transition. The board appointed Frederick W. Driscoll as chairperson of the company to lead the board during this period.
