MEIP - MEI Pharma and Infinity Pharma ink all-stock merger deal

Oncology-focused clinical-stage biotechs MEI Pharma ( NASDAQ: MEIP ) and Infinity Pharmaceuticals ( NASDAQ: INFI ) announced a merger agreement Thursday to combine in an all-stock transaction.

Per the terms, Infinity ( INFI ) will become a wholly owned subsidiary of MEI Pharma ( MEIP ) at the close of the deal, expected in mid-2023, subject to shareholder approval and other closing conditions.

Three development programs will anchor the combined company’s pipeline, which will be led by eganelisib, an oral, immuno-oncology drug candidate targeted at the head and neck squamous cell carcinoma (HNSCC) in combination with Merck’s ( MRK ) Keytruda.

The current MEI Pharma ( MEIP ) shareholders are expected to own ~58% of the combined entity, while Infinity ( INFI ) shareholders will own the rest immediately after the merger.

The companies said that the projected cash balance of the combined entity at ~$100M is expected to fund operations through mid-2025, supporting data readouts over the next 12 to 24 months.

David Urso, Chief Operating Officer and General Counsel of MEI Pharma ( MEIP ) is set to take over the leadership position of the combined company. The new entity is expected to trade on the Nasdaq under a new name.

Shares of MEI Pharma ( MEIP ) and Infinity ( INFI ) are currently on hold for trading. Trading es expected to resume at 7:30 AM EST.

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