A doomed merger sent Infinity Pharma filing for bankruptcy last year. Now, the other half of that ill-fated deal is facing its end as well.
MEI Pharma is evaluating strategic alternatives including potential transactions or a potential wind-down of the company to maximize the value of assets for its shareholders. The plan was approved by the board of directors, according to a Monday press release.
The company attempted what became a dramatic biotech-to-biotech merger with Infinity throughout 2023. Originally pitching a new formation that would see Infinity become a wholly-owned subsidiary of MEI, the deal was scuppered after investors made their own bid and MEI’s shareholders ultimately voted against the transaction.
With the merger shot down, Infinity filed for bankruptcy in October 2023. Executives had warned that would be the outcome if the deal were to fall through.
Now it seems MEI is in a similar position. The company will execute a reduction in force “as soon as practicable,” and all clinical activities related to voruciclib will be discontinued, according to the release.
The oral CDK9 inhibitor had been in development for acute myeloid leukemia and B cell malignancies.
CEO David Urso and Chief Medical Officer Richard Ghalie, M.D., will step down effective August 1. Urso will also leave the board of directors at the same time but both executives will enter consulting agreements with the company to assist the strategic efforts. Board chairperson Charles Baltic will also step down. CFO Justin File will serve as acting CEO after Urso departs, while Frederick Driscoll will become chairperson of the board during the transition.
Options for MEI include out-licensing existing programs or a merger and acquisition.
“The company’s board and management team believe that it is prudent to focus the company’s resources and efforts on the exploration of potential strategic alternatives, and during that process to practice prudent cash management,” File said in a statement. “Should advantageous strategic alternatives not be presented, the company would consider an orderly wind-down of its operations.”