MEI Pharma (MEIP) AI Stock Analysis

• Market Cap: $14.19M
• Dividend Yield: N/A
• Average Volume (3M): 8.24K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.42
• Revenue Growth: -100.00%
• EPS Growth: -292.59%
• Country: US
• Employees: 28
• Sector: Healthcare
• Sector Strength: 79
• Industry: Biotechnology
• EPS (TTM): -5.74
• Shares Outstanding: 6,662,857
• 10 Day Avg. Volume: 6,747
• 30 Day Avg. Volume: 8,236
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.23
• Price to Cash Flow (P/CF): -1.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

MEI Pharma is facing significant financial challenges, with no revenue generation and negative profitability metrics. The balance sheet shows no leverage risk but is weakened by declining asset and equity levels. Technical analysis indicates a bearish trend, with the stock trading below major moving averages and weak momentum indicators. The valuation is unattractive, with a negative P/E ratio and no dividend yield. These factors lead to a low overall stock score, highlighting the need for strategic improvements.

MEI Pharma Business Overview & Revenue Model

Company Description

MEI Pharma, Inc., a late-stage pharmaceutical company, focuses on the development and commercialization of various therapies for the treatment of cancer. The company develops Zandelisib, an oral phosphatidylinositol 3-kinase delta inhibitor that is in Phase III clinical trial for the treatment of patients with relapsed/refractory follicular lymphoma, as well as in Phase Ib multi-arm trial to treat B-cell malignancies; and Voruciclib, an oral cyclin-dependent kinase 9 inhibitor, which is in Phase Ib clinical trial for acute myeloid leukemia and B-cell malignancies. It also develops ME-344, a mitochondrial inhibitor targeting the oxidative phosphorylation complex that is in Phase I clinical trial for the treatment of human epidermal growth factor receptor 2 negative breast cancer; and Pracinostat, an oral available histone deacetylase inhibitor, which is in Phase II clinical trial to treat patients with myelodysplastic syndrome. MEI Pharma, Inc. has a license, development, and commercialization agreement with Kyowa Kirin Company; a clinical collaboration with BeiGene, Ltd.; a license, development, manufacturing, and commercialization agreement with Helsinn Healthcare SA; and a license agreement with Presage Biosciences, Inc. The company was formerly known as Marshall Edwards, Inc. and changed its name to MEI Pharma, Inc. in July 2012. MEI Pharma, Inc. was incorporated in 2000 and is headquartered in San Diego, California.

How the Company Makes Money

MEI Pharma makes money primarily through the development and commercialization of its oncology drug candidates. The company generates revenue from licensing agreements, milestone payments, and potential royalties related to the commercialization of its drug candidates. These agreements are often formed with larger pharmaceutical companies that have the resources to bring a drug to market. MEI Pharma's business strategy also involves strategic partnerships and collaborations that can provide funding and expertise for the continued development of its pipeline products. Additionally, the company may receive funding from government grants or research organizations to support its clinical trials and research activities.

MEI Pharma Financial Statement Overview

Summary

MEI Pharma faces significant financial challenges, particularly with revenue generation and profitability. The balance sheet shows limited leverage risks but declining asset base and equity levels. Cash flow issues highlight the need for operational efficiency improvements. The company's financial health is fragile, emphasizing the need for strategic adjustments to stabilize and grow.

Income Statement

The company shows volatility in revenue streams, with the latest TTM period reporting no revenue. The gross profit margin is negative due to a lack of revenue, and the TTM net profit margin is also negative, indicating a lack of profitability. Historical data shows fluctuating revenues with periods of positive EBIT and EBITDA margins, but the recent trend is concerning.

Balance Sheet

The balance sheet reveals a low debt burden, with a debt-to-equity ratio of 0, indicating no leverage risk. However, the equity ratio is declining, suggesting weakened financial stability. There is positive stockholders' equity, but the overall asset base has diminished over recent periods, raising concerns about resource sustainability.

Cash Flow

The cash flow statement highlights challenges in generating positive operating cash flow, which remains negative. The free cash flow is negative in the latest period, with the operating cash flow to net income ratio indicating inefficiencies. Prior periods show some positive cash flow from investing activities, but sustainability remains uncertain.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	65.30M	48.82M	40.70M	25.54M	28.91M
	Gross Profit
-3.86M	64.91M	47.00M	39.46M	24.13M	26.24M
	EBIT
-40.61M	14.54M	-36.76M	-75.48M	-69.69M	-24.54M
	EBITDA
-29.28M	26.38M	-36.76M	-75.16M	-60.14M	-25.59M
	Net Income Common Stockholders
-38.22M	17.78M	-31.84M	-54.45M	-41.31M	-47.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.83M	38.34M	100.69M	153.25M	153.43M	182.63M
	Total Assets
6.07M	41.38M	120.81M	177.84M	174.10M	209.73M
	Total Debt
0.00	0.00	12.73M	9.64M	8.30M	0.00
	Net Debt
-5.83M	-3.71M	-4.18M	-6.10M	-245.00K	-12.33M
	Total Liabilities
2.26M	8.36M	96.19M	125.43M	132.74M	131.51M
	Stockholders Equity
3.80M	33.02M	24.62M	52.41M	41.36M	78.22M
Cash Flow		Free Cash Flow
-36.04M	-50.48M	-52.52M	-49.23M	-32.67M	33.36M
	Operating Cash Flow
-36.04M	-50.47M	-52.48M	-48.75M	-31.96M	34.26M
	Investing Cash Flow
54.82M	49.14M	53.69M	6.89M	24.71M	-106.29M
	Financing Cash Flow
-208.00K	-11.87M	-40.00K	49.05M	3.47M	74.78M

MEI Pharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEIP, the sentiment is Negative. The current price of 2 is below the 20-day moving average (MA) of 2.29, below the 50-day MA of 2.52, and below the 200-day MA of 2.82, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 27.72 is Positive, neither overbought nor oversold. The STOCH value of 15.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MEIP.

MEI Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGTX	58 Neutral	$6.18B	267.55	12.21%	―	40.80%	100.62%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
FATE	42 Neutral	$77.93M	―	-54.21%	―	-78.55%	-0.92%
ADCT	41 Neutral	$121.87M	―	123.38%	―	1.84%	43.40%
MEIP	41 Neutral	$14.19M	―	-93.69%	―	-100.00%	-292.59%
XOMA	39 Underperform	$237.30M	―	-16.20%	―	498.72%	49.92%
AGEN	26 Underperform	$40.49M	―	260.68%	―	-33.81%	23.02%