Key takeaways from Point72 Asset Management’s 13G filings (Part 3 of 13)

(Continued from Part 2)

Point72 and MEI Pharma

Point72 Asset Management initiated a position in MEI Pharma Inc. (MEIP). A 13G filing in December noted that the fund owns 2.4 million shares. The filing said the fund owns a passive stake of 7.2% in the company.

About MEI Pharma

MEI Pharma is an oncology company that focuses on the clinical development of novel therapies for cancer. It was incorporated in Delaware in December 2000. It has three wholly owned drug candidates:

1. Pracinostat: Oral histone deacetylase (or HDAC) inhibitor developed for advanced hematologic diseases such as myelodysplastic syndrome (or MDS) and acute myeloid leukemia (or AML)
2. ME-344: Novel mitochondrial inhibitor with single-agent activity
3. PWT143: PI3K delta inhibitor, which plays a critical role in the proliferation and survival of hematologic cancer cells

December 2014 IPO

On December 17, MEI Pharma completed its initial public offering (or IPO) on NASDAQ. It issued 10 million shares of its common stock at an offering price of $4.00 per share. Exercise of the full option to purchase additional shares of 1,500,000 by the underwriters increased the gross proceeds to the company to $46.0 million.

MEI plans to use the net proceeds from this offering to progress the clinical development programs for Pracinostat in AML and for other general corporate purposes.

Net loss widened in 3Q14

As a development-stage pharmaceutical company, MEI Pharma had no revenues in either the third quarter of 2014 or the first nine months of 2014.

For 3Q14, it reported net loss of $8.99 million or $0.42 per share, compared to net loss of $4.89 million or $0.29 per share in 3Q13. Research and development expenses were $6.66 million in 3Q14, compared to $3.10 million in 3Q13. As of September 30, it had $42.1 million in cash and zero debt.

2015 clinical milestones

Pracinostat:

• Top-line data from Phase II study in front line MDS is expected to complete in March.
• Full top-line data from Phase II studies in front line MDS & AML is to be completed in June.
• Initiation of Phase III study in front line elderly AML is expected to complete in June.

ME-344:

• Data from Phase Ib trial in small cell lung & ovarian cancers is expected.

PWT143:

• Initiation of first-in-human study is expected in the first half of 2015.

Point72’s 13G positions

The fund initiated positions in Jones Energy Inc. (JONE), MEI Pharma Inc. (MEIP), and Catalyst Pharmaceutical Partners, Inc. (CPRX).

The fund increased positions in Silicon Motion Technology Corp. (SIMO), RCS Capital Corp (RCAP), Kindred Healthcare, Inc. (KND), Crocs, Inc. (CROX), LogMeIn Inc. (LOGM), Kraton Performance Polymers Inc. (KRA), and Walter Investment Management Corp (WAC).

The fund reduced its position in Clearwater Paper Corp (CLW) and Shutterfly, Inc. (SFLY).

In the next part of the series, we’ll discuss Point72 Asset Management’s position in Catalyst Pharmaceutical Partners.

Continue to Part 4

Browse this series on Market Realist:

• Part 1 – A key overview of Point72 Asset Management’s 13G filings
• Part 2 – Point72 Asset Management begins position in Jones Energy
• Part 4 – Point72 Asset Management adds position in Catalyst Pharmaceutical

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