View Filing Data

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2015	May 05, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	MEIP
Entity Registrant Name	MEI Pharma, Inc.
Entity Central Index Key	0001262104
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		34,155,997

Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2015	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 20,465	$ 13,777
Short term investments	50,055	35,016
Total cash, cash equivalents and short-term investments	70,520	48,793
Prepaid expenses and other current assets	592	497
Total current assets	71,112	49,290
Intangible assets, net	409	435
Property and equipment, net	77	83
Total assets	71,598	49,808
Current liabilities:
Accounts payable	2,711	1,708
Accrued liabilities	3,927	2,908
Total current liabilities	6,638	4,616
Commitments and contingencies (Note 3)
Stockholders' equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none outstanding	0	0
Common stock, $0.00000002 par value; 113,000,000 shares authorized; 34,155,997 and 21,607,296 shares issued and outstanding at March 31, 2015 and June 30, 2014, respectively	0	0
Additional paid-in-capital	215,437	168,637
Accumulated deficit	(150,477)	(123,445)
Total stockholders' equity	64,960	45,192
Total liabilities and stockholders' equity	$ 71,598	$ 49,808

Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2015	Jun. 30, 2014
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.00000002	$ 0.00000002
Common stock, shares authorized	113,000,000	113,000,000
Common stock, shares issued	34,155,997	21,607,296
Common stock, shares outstanding	34,155,997	21,607,296

Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Statements of Operations - USD ($) $ in Thousands	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Operating expenses:
Research and development	$ (6,775)	$ (5,415)	$ (20,044)	$ (12,918)
General and administrative	(2,185)	(1,991)	(7,039)	(5,751)
Total operating expenses	(8,960)	(7,406)	(27,083)	(18,669)
Loss from operations	(8,960)	(7,406)	(27,083)	(18,669)
Other income (expense):
Interest and dividend income	30	19	52	62
Income tax expense	0	0	(1)	0
Net loss	$ (8,930)	$ (7,387)	$ (27,032)	$ (18,607)
Net loss per share, basic and diluted	$ (0.27)	$ (0.34)	$ (1.03)	$ (0.95)
Weighted average shares outstanding - basic and diluted	33,471,920	21,502,542	26,183,435	19,547,968

Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	$ (27,032)	$ (18,607)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	3,730	3,534
Depreciation and amortization	48	34
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(95)	(405)
Accounts payable	1,003	163
Accrued liabilities	1,019	1,680
Net cash used in operating activities	(21,327)	(13,601)
Cash flows from investing activities:
Purchases of property and equipment	(16)	(21)
Purchases of short-term investments	(65,063)	(54,988)
Proceeds from maturity of short-term investments	50,024	19,981
Net cash used in investing activities	(15,055)	(35,028)
Cash flows from financing activities:
Net proceeds from issuance of common stock	43,070	32,726
Net cash provided by financing activities	43,070	32,726
Net increase (decrease) in cash and cash equivalents	6,688	(15,903)
Cash and cash equivalents at beginning of the period	13,777	35,573
Cash and cash equivalents at end of the period	$ 20,465	$ 19,670

The Company

9 Months Ended

Mar. 31, 2015

The Company

1. The Company

MEI Pharma, Inc., or “the Company”, is an oncology company focused on the clinical development of novel therapies for cancer. The Company’s common stock is listed on the Nasdaq Capital Market under the symbol “MEIP”.

The Company’s business purpose is the development of drugs for the treatment of cancer. The Company’s portfolio of drug candidates includes Pracinostat, which is currently being investigated in Phase II clinical trials. Pracinostat is an orally available histone deacetylase (“HDAC”) inhibitor that is currently being developed for advanced hematologic diseases such as myelodysplastic syndrome (“MDS”), and acute myeloid leukemia (“AML”). In August 2012, the Company completed the acquisition of certain assets and intellectual property, including those related to Pracinostat, from S*Bio Pte Ltd (“S*Bio”). The Company’s clinical development pipeline also includes its isoflavone-based mitochondrial inhibitor drug candidate, ME-344. A Phase Ib trial in patients with small cell lung and ovarian cancers is ongoing. In September 2013, the Company acquired PWT143, an oral inhibitor of phosphatidylinositide 3-kinase (“PI3K”) delta. The Company expects to initiate a first-in-human study of PWT143 in mid-calendar year 2015.

The Company owns exclusive worldwide rights to all of its drug candidates, including Pracinostat, ME-344 and PWT143.

Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The Company has evaluated subsequent events through the date the financial statements were issued.

The accompanying unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto as of and for the fiscal year ended June 30, 2014, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on September 9, 2014. Interim results are not necessarily indicative of results for a full year.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. The Company uses estimates for certain accruals, including drug development costs, clinical and pre-clinical study fees and expenses, and share-based compensation, among others. Actual results could materially differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and highly liquid investments with original maturities of three months or less when purchased.

Short-Term Investments

Investments that have maturities of greater than three months but less than one year are classified as short-term investments. Short-term investments are considered to be ‘held to maturity’ and are recorded at their amortized cost.

Fair Value of Financial Instruments

The carrying amounts of financial instruments such as cash equivalents, short-term investments and accounts payable approximate the related fair values due to the short-term maturities of these instruments. The Company invests its excess cash in financial instruments which are readily convertible into cash, such as money market funds and U.S. government securities. Cash is deposited in financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”). These deposits are in excess of the FDIC insurance limits.

The fair value of financial assets and liabilities is measured under a three-tier fair value hierarchy as follows: Level 1 fair value is determined from observable, quoted prices in active markets for identical assets or liabilities. Level 2 fair value is determined from quoted prices for similar items in active markets or quoted prices for identical or similar items in markets that are not active. Level 3 fair value is determined using the entity’s own assumptions about the inputs that market participants would use in pricing an asset or liability. Cash equivalents, where applicable, and short-term investments are classified as Level 1 as defined by the fair value hierarchy.

Intangible Assets

Intangible assets consist of patents acquired from S*Bio in August 2012, relating to a family of heterocyclic compounds that inhibit HDACs. Capitalized amounts are amortized on a straight-line basis over the expected life of the intellectual property of 14 years from the date of acquisition. The carrying values of intangible assets are periodically reviewed to determine if the facts and circumstances suggest that a potential impairment may have occurred. Results of operations for the three and nine months ended March 31, 2015, do not reflect any impairment of intangible assets.

Property and Equipment

Property and equipment are stated at cost and depreciated over the estimated useful lives of the assets (generally three to seven years) using the straight-line method. Leasehold improvements are stated at cost and are amortized over the shorter of the estimated useful lives of the assets or the lease term.

License Fees

Costs incurred related to the licensing of products that have not yet received regulatory approval to be marketed, or that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred.

Research and Development Costs

Research and development costs are expense d as incurred and include costs paid to third-party contractors to perform research, conduct clinical trials and develop and manufacture drug materials. Clinical trial costs, including costs associated with third-party contractors, are a significant component of research and development expenses. The Company accrues research and development costs based on work performed. In determining the amount to accrue, management relies on estimates of total costs based on contract components completed, the enrollment of subjects, the completion of trials, and other events. Costs incurred related to the purchase of in-process research and development for early-stage products or products that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred.

Income Taxes

The Company’s income tax expense consists of current and deferred income tax expense or benefit. Current income tax expense or benefit is the amount of income taxes paid or refunded for the current year. A deferred income tax asset or liability is recognized for the future tax consequences attributable to tax credits and loss carry-forwards and to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as differences in the timing of recognizing amounts for tax return purposes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of March 31, 2015 and June 30, 2014, the Company has established a valuation allowance to fully reserve its net deferred tax assets. Tax rate changes are reflected in income during the period such changes are enacted. Changes in ownership may limit the amount of net operating loss carry-forwards that can be utilized in the future to offset taxable income.

The Financial Accounting Standards Board (“FASB”) prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. An uncertain income tax position will not be recognized if management believes it has less than a 50% likelihood of being sustained. There were no unrecognized tax benefits as of March 31, 2015.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Currently the Company is not generating any revenue. Therefore, we have not yet determined the transition method by which we will adopt the standard in 2017.

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). The standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Company does not expect that the adoption of this standard will have a material effect on its financial statements.

Commitments and Contingencies

9 Months Ended

Mar. 31, 2015

Commitments and Contingencies

3. Commitments and Contingencies

The Company has contracted with various consultants and third parties to assist it in pre-clinical research and development and clinical trials work for its leading drug compounds. The contracts are terminable at any time, but obligate the Company to reimburse the providers for any time and costs incurred through the date of termination. The Company also has employment agreements with certain of its current employees that provide for severance payments and accelerated vesting for share-based awards if their employment is terminated under specified circumstances.

As of March 31, 2015, the Company leases approximately 8,800 square feet of office space for the Company’s executive and administrative offices. The monthly rental rate is approximately $27,000 per month during the remaining term of the lease, plus a pro-rata share of certain building expenses. In April 2015, the Company signed a lease amendment to extend the lease term through June 30, 2016, with an option to extend the term by an additional year.

Asset Purchase Agreement

In August 2012, the Company acquired certain assets comprised of intellectual property and technology from S*Bio, including rights to Pracinostat, in exchange for $500,000 of common stock. The Company issued 195,756 shares of common stock to S*Bio and also agreed to make certain milestone payments to S*Bio based on the achievement of certain clinical, regulatory and net sales-based milestones, as well as to make certain contingent earnout payments to S*Bio. Milestone payments will be made to S*Bio up to an aggregate amount of $75.2 million if certain U.S., E.U. and Japanese regulatory approvals are obtained and if certain net sales thresholds are met in North America, the E.U. and Japan. The first milestone payment of $200,000 plus shares of the Company’s common stock having a value of $500,000 will be due upon the first dosing of a patient in a Phase III clinical trial or other pivotal trial, for any indication. Subsequent milestone payments will be due upon certain regulatory approvals and sales-based events. S*Bio will be entitled to receive certain contingent earnout payments based on certain worldwide net sales thresholds on a product-by-product and country-by-country basis. As of March 31, 2015, the Company has not accrued any amounts for potential future payments. The net carrying values of the assets acquired under the agreement are recorded on the balance sheet as intangible assets, net.

License Agreement

In September 2012, the Company entered into a license agreement with CyDex Pharmaceuticals, Inc. (“CyDex”). Under the license agreement, CyDex granted to the Company an exclusive, nontransferable license to intellectual property rights relating to Captisol^® for use with the Company’s isoflavone-based drug compounds. The Company agreed to pay to CyDex a non-refundable license issuance fee, future milestone payments, and royalties at a low, single-digit percentage on future sales of the Company’s approved drugs utilizing Captisol. Contemporaneously with the license agreement, the Company and CyDex entered into a commercial supply agreement pursuant to which the Company agreed to purchase 100% of its requirements for Captisol from CyDex. The Company may terminate both the license agreement and the supply agreement for convenience at any time upon 90 days’ prior written notice. As of March 31, 2015, the Company has not accrued any amounts for potential future payments. Costs associated with the license agreement were recorded as research and development expense as incurred.

Stockholders' Equity

9 Months Ended

Mar. 31, 2015

Stockholders' Equity

4. Stockholders’ Equity

Equity Transactions

Shelf Registration Statement

In April 2014, the Company filed a shelf registration statement on Form S-3 with the SEC (“shelf registration statement”). The shelf registration statement was declared effective by the SEC in April 2014. The shelf registration statement permits the Company to sell, from time to time, up to $150 million of common stock, preferred stock and warrants. Pursuant to SEC regulations, if the market value of the Company’s public float is below $75 million, the Company cannot sell securities from the shelf registration statement which represent more than one-third of the market value of the Company’s non-affiliated public float during any 12-month period.

Underwritten Registered Offerings

In December 2014, the Company completed an underwritten registered offering of 11,500,000 shares of its common stock at a price per share of $4.00, pursuant to the shelf registration statement. The Company received net cash proceeds of $43.1 million associated with the offering, after costs of $2.9 million.

In October 2013, the Company completed an underwritten registered offering of 4,375,000 shares of its common stock at a price per share of $8.00 pursuant to a shelf registration statement previously filed and declared effective by the SEC. The Company received net cash proceeds of $32.7 million associated with the offering, after costs of $2.3 million.

Warrants

As of March 31, 2015, there were outstanding warrants to purchase 315,484 shares of the Company’s common stock at an exercise price of $7.14 per share, which expire in May 2017, issued in conjunction with the Company’s May 2012 rights offering; outstanding Series A warrants and warrants issued to the Company’s placement agent for the May 2011 private placement to purchase up to 215,721 shares of common stock at an exercise price of $6.00 per share, which expire in November 2016; and warrants to purchase 3,230,202 shares of the Company’s common stock at an exercise price of $3.12 per share, which expire in December 2017, issued in conjunction with the December 2012 private placement.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Share-based Compensation

9 Months Ended

Mar. 31, 2015

Share-based Compensation

5. Share-based Compensation

The Company uses equity-based compensation programs to provide long-term performance incentives for its employees. These incentives consist primarily of stock options and restricted stock units (“RSUs”).

MEI Pharma’s 2008 Stock Omnibus Equity Compensation Plan (the “2008 Equity Plan”) provides for the grant of options and/or other share-based or share-denominated awards to the Company’s non-employee directors, officers, employees and advisors. The 2008 Equity Plan was initially adopted in 2008 and was amended and restated in 2011 and 2012. Effective December 3, 2014, the Company’s stockholders voted to further amend and restate the 2008 Equity Plan to increase the number of shares of common stock authorized for issuance under the plan to 3,936,000 shares, and to increase the maximum term of stock options from five years to ten years, among other changes. As of March 31, 2015, there were 1,723,324 shares available for future grant under the 2008 Equity Plan.

Total share-based compensation expense for all stock awards consists of the following, in thousands:


	Three Months Ended March 31,				Nine Months Ended March 31,
	2015		2014		2015		2014
Research and development	$	317	$	409	$	1,177	$	1,163
General and administrative		751		775		2,553		2,371

Total share-based compensation	$	1,068	$	1,184	$	3,730	$	3,534

Stock Options

As of March 31, 2015, there were a total of 1,879,009 options outstanding, including options representing the right to purchase a total of 66,333 shares of common stock which were granted to two of the Company’s officers outside of the Plan.

Stock option activity for the nine months ended March 31, 2015 was as follows:


	Number of Options			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at June 30, 2014		1,194,854		$	8.11
Granted		762,322			6.37
Forfeited		(78,167	)		7.10

Outstanding at March 31, 2015		1,879,009		$	7.45		3.8	$	—

Vested and exercisable at March 31, 2015		624,843		$	8.17		2.6	$	—

The fair value of each stock option granted is estimated on the grant date under the fair value method using a binomial valuation model. Stock options granted to employees vest 25% one year from the date of grant and ratably each month thereafter for a period of 36 months and expire five years from the date of grant. Stock options granted to directors during the nine months ended March 31, 2015 vest ratably each month for periods ranging from seven to 36 months from the date of grant and expire either five years or ten years from the date of grant. The RSU equity awards are measured using the grant date fair value of the Company’s common stock. The estimated fair values of the stock options and RSUs, including the effect of estimated forfeitures, are expensed over the service period.

The following weighted-average assumptions were used to determine the fair value of options granted during the period:


	Nine Months Ended March 31,
	2015			2014
Risk-free interest rate		1.6	%		1.4	%
Expected life (years)		5.0			5.0
Expected volatility		115.7	%		153.9	%
Dividend yield		0.0	%		0.0	%
Weighted-average grant date fair value	$	5.00		$	6.70

As of March 31, 2015, the Company expects all outstanding options to vest. As of March 31, 2015, there was $3.6 million of unrecognized compensation expense related to the unvested portion of stock options. Such compensation expense is expected to be recognized over a weighted-average period of 1.7 years.

Restricted Stock Units

In March 2013, the Compensation Committee of the Board of Directors granted 400,000 RSUs to the Company’s Chief Executive Officer, Dr. Daniel P. Gold. Each RSU represents the contingent right to receive one share of the Company’s common stock. One-third of the RSUs vested on August 30, 2014, the remaining two-thirds will vest on each of August 30, 2015 and August 30, 2016. The shares underlying the RSUs will be delivered to Dr. Gold on the earliest to occur of (i) March 29, 2018, (ii) Dr. Gold’s death, disability or separation from service from the Company for any reason, or (iii) a change in control involving the Company.

The fair value of the RSUs on the date of grant was $3.5 million. The grant date fair value per unit was $8.63. As of March 31, 2015, unrecognized compensation expense related to the unvested portion of the Company’s RSUs was approximately $0.7 million and is expected to be recognized over a weighted-average period of 1.1 years.

The Company (Policies)	9 Months Ended
The Company (Policies)	Mar. 31, 2015
Basis of Presentation	Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The Company has evaluated subsequent events through the date the financial statements were issued. The accompanying unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto as of and for the fiscal year ended June 30, 2014, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on September 9, 2014. Interim results are not necessarily indicative of results for a full year.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. The Company uses estimates for certain accruals, including drug development costs, clinical and pre-clinical study fees and expenses, and share-based compensation, among others. Actual results could materially differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid investments with original maturities of three months or less when purchased.
Short-Term Investments	Short-Term Investments Investments that have maturities of greater than three months but less than one year are classified as short-term investments. Short-term investments are considered to be ‘held to maturity’ and are recorded at their amortized cost.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of financial instruments such as cash equivalents, short-term investments and accounts payable approximate the related fair values due to the short-term maturities of these instruments. The Company invests its excess cash in financial instruments which are readily convertible into cash, such as money market funds and U.S. government securities. Cash is deposited in financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”). These deposits are in excess of the FDIC insurance limits. The fair value of financial assets and liabilities is measured under a three-tier fair value hierarchy as follows: Level 1 fair value is determined from observable, quoted prices in active markets for identical assets or liabilities. Level 2 fair value is determined from quoted prices for similar items in active markets or quoted prices for identical or similar items in markets that are not active. Level 3 fair value is determined using the entity’s own assumptions about the inputs that market participants would use in pricing an asset or liability. Cash equivalents, where applicable, and short-term investments are classified as Level 1 as defined by the fair value hierarchy.
Intangible Assets	Intangible Assets Intangible assets consist of patents acquired from S*Bio in August 2012, relating to a family of heterocyclic compounds that inhibit HDACs. Capitalized amounts are amortized on a straight-line basis over the expected life of the intellectual property of 14 years from the date of acquisition. The carrying values of intangible assets are periodically reviewed to determine if the facts and circumstances suggest that a potential impairment may have occurred. Results of operations for the three and nine months ended March 31, 2015, do not reflect any impairment of intangible assets.
Property and Equipment	Property and Equipment Property and equipment are stated at cost and depreciated over the estimated useful lives of the assets (generally three to seven years) using the straight-line method. Leasehold improvements are stated at cost and are amortized over the shorter of the estimated useful lives of the assets or the lease term.
License Fees	License Fees Costs incurred related to the licensing of products that have not yet received regulatory approval to be marketed, or that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred.
Research and Development Costs	Research and Development Costs Research and development costs are expense d as incurred and include costs paid to third-party contractors to perform research, conduct clinical trials and develop and manufacture drug materials. Clinical trial costs, including costs associated with third-party contractors, are a significant component of research and development expenses. The Company accrues research and development costs based on work performed. In determining the amount to accrue, management relies on estimates of total costs based on contract components completed, the enrollment of subjects, the completion of trials, and other events. Costs incurred related to the purchase of in-process research and development for early-stage products or products that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred.
Income Taxes	Income Taxes The Company’s income tax expense consists of current and deferred income tax expense or benefit. Current income tax expense or benefit is the amount of income taxes paid or refunded for the current year. A deferred income tax asset or liability is recognized for the future tax consequences attributable to tax credits and loss carry-forwards and to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as differences in the timing of recognizing amounts for tax return purposes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of March 31, 2015 and June 30, 2014, the Company has established a valuation allowance to fully reserve its net deferred tax assets. Tax rate changes are reflected in income during the period such changes are enacted. Changes in ownership may limit the amount of net operating loss carry-forwards that can be utilized in the future to offset taxable income. The Financial Accounting Standards Board (“FASB”) prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. An uncertain income tax position will not be recognized if management believes it has less than a 50% likelihood of being sustained. There were no unrecognized tax benefits as of March 31, 2015.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Currently the Company is not generating any revenue. Therefore, we have not yet determined the transition method by which we will adopt the standard in 2017. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). The standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Company does not expect that the adoption of this standard will have a material effect on its financial statements.

Share-based Compensation (Tables)

9 Months Ended

Mar. 31, 2015

Share-Based Compensation Expense for Stock Awards

Total share-based compensation expense for all stock awards consists of the following, in thousands:


	Three Months Ended March 31,				Nine Months Ended March 31,
	2015		2014		2015		2014
Research and development	$	317	$	409	$	1,177	$	1,163
General and administrative		751		775		2,553		2,371

Total share-based compensation	$	1,068	$	1,184	$	3,730	$	3,534

Stock Option Activity

Stock option activity for the nine months ended March 31, 2015 was as follows:


	Number of Options			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at June 30, 2014		1,194,854		$	8.11
Granted		762,322			6.37
Forfeited		(78,167	)		7.10

Outstanding at March 31, 2015		1,879,009		$	7.45		3.8	$	—

Vested and exercisable at March 31, 2015		624,843		$	8.17		2.6	$	—

Weighted-Average Assumptions Used to Determine Fair Value of Options Granted

The following weighted-average assumptions were used to determine the fair value of options granted during the period:


	Nine Months Ended March 31,
	2015			2014
Risk-free interest rate		1.6	%		1.4	%
Expected life (years)		5.0			5.0
Expected volatility		115.7	%		153.9	%
Dividend yield		0.0	%		0.0	%
Weighted-average grant date fair value	$	5.00		$	6.70

The Company - Additional Information (Detail)	3 Months Ended	9 Months Ended
The Company - Additional Information (Detail)	Mar. 31, 2015 USD ($)	Mar. 31, 2015 USD ($)
Targeted or Tracking Stock, Stock [Line Items]
Highly liquid investments, maturity period maximum		3 months
Estimated life of the intellectual property		14 years
Impairment of intangible assets	$ 0	$ 0
Percentage of likelihood of income tax being sustained		50.00%
Unrecognized tax benefits	$ 0	$ 0
Minimum
Targeted or Tracking Stock, Stock [Line Items]
Short-term investments, maturity		3 months
Property and equipment, estimated useful life		3 years
Maximum
Targeted or Tracking Stock, Stock [Line Items]
Short-term investments, maturity		1 year
Property and equipment, estimated useful life		7 years

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended			9 Months Ended
	Apr. 30, 2015	Sep. 30, 2012	Aug. 31, 2012 USD ($) shares	Mar. 31, 2015 USD ($) ft²	Jun. 30, 2014 USD ($)
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Lease arrangement rent area, square feet \| ft²				8,800
Lease rental rate				$ 27,000
Issuance of common stock to acquire intellectual property and technology rights			$ 500,000
Issuance of common stock to purchase asset, shares \| shares			195,756
Future aggregate milestone payments			$ 75,200,000
First milestone payment			200,000
Common stock value				$ 0	$ 0
Percentage of Purchase Requirement		100.00%
License and supply agreement notice period		90 days
Subsequent Event
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Lease expiration date	Jun. 30, 2016
Phase Three Clinical Trial
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Common stock value			$ 500,000

Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands	1 Months Ended			9 Months Ended
	Dec. 31, 2014 USD ($) $ / shares shares	Apr. 30, 2014 USD ($)	Oct. 31, 2013 USD ($) $ / shares shares	Mar. 31, 2015 USD ($) $ / Right shares	Mar. 31, 2014 USD ($)
Class of Stock [Line Items]
Public float maximum market value		$ 75,000
Net proceeds from offering				$ 43,070	$ 32,726
Series A warrants
Class of Stock [Line Items]
Warrants outstanding \| shares				215,721
Exercise price \| $ / Right				6.00
Warrants expiration date				2016-11
Maximum
Class of Stock [Line Items]
Sale of shares and warrants under agreement		$ 150,000
Rights Offering
Class of Stock [Line Items]
Warrants outstanding \| shares				315,484
Exercise price \| $ / Right				7.14
Warrants expiration date				2017-05
Underwritten Registered Offering
Class of Stock [Line Items]
Stock issued \| shares	11,500,000		4,375,000
Purchase price common stock \| $ / shares	$ 4.00		$ 8.00
Net proceeds from offering	$ 43,100		$ 32,700
Stock offering cost	$ 2,900		$ 2,300
December 2012 Private Placement
Class of Stock [Line Items]
Warrants outstanding \| shares				3,230,202
Exercise price \| $ / Right				3.12
Warrants expiration date				2017-12

Share-based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		9 Months Ended
	Dec. 03, 2014	Mar. 31, 2013	Mar. 31, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding			1,879,009	1,194,854
Unrecognized compensation expense related to non-vested stock options			$ 3.6
Expected weighted average period for recognition of compensation expense			1 year 8 months 12 days
Directors \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expiration period			5 years
Stock option vesting period			7 months
Directors \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expiration period			10 years
Stock option vesting period			36 months
2008 Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized			3,936,000
Shares available for future grant			1,723,324
2008 Omnibus Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expiration period	5 years
2008 Omnibus Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expiration period	10 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected weighted average period for recognition of compensation expense			1 year 1 month 6 days
Fair value of RSUs on the date of grant		$ 3.5
RSUs grant date fair value per unit		$ 8.63
Unrecognized compensation expense related to non-vested RSUs			$ 0.7
Restricted Stock Units (RSUs) \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted		400,000
Number of common stock to be received for each RSUs		1
Restricted Stock Units (RSUs) \| Chief Executive Officer \| Vesting Schedule One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
One third of RSUs vesting date		Aug. 30, 2014
Restricted Stock Units (RSUs) \| Chief Executive Officer \| Vesting Schedule Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
One third of RSUs vesting date		Aug. 30, 2015
Restricted Stock Units (RSUs) \| Chief Executive Officer \| Vesting Schedule Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
One third of RSUs vesting date		Aug. 30, 2016
Stock Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding			1,879,009
Stock Compensation Plan \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding			66,333
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expiration period			5 years
Stock option vested percentage			25.00%
Stock option vesting period			36 months

Summary of Stock Option Activity and Related Data (Detail)	9 Months Ended
	Mar. 31, 2015 USD ($) $ / shares shares
Number of Options
Beginning Balance \| shares	1,194,854
Granted \| shares	762,322
Forfeited \| shares	(78,167)
Ending balance \| shares	1,879,009
Vested and exercisable at end of period \| shares	624,843
Weighted- Average Exercise Price
Beginning Balance \| $ / shares	$ 8.11
Granted \| $ / shares	6.37
Forfeited \| $ / shares	7.10
Ending balance \| $ / shares	7.45
Vested and exercisable at end of period \| $ / shares	$ 8.17
Weighted Average Remaining Contractual Term (in years)
Outstanding at end of period	3 years 9 months 18 days
Vested and exercisable at end of period	2 years 7 months 6 days
Aggregate Intrinsic Value
Outstanding at end of period \| $	$ 0
Vested and exercisable at end of period \| $	$ 0

Weighted-Average Assumptions Used to Determine Fair Value of Options Granted (Detail) - $ / shares	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share based Compensation Arrangement Assumptions Used to Estimate Fair Values of Share Options Granted [Line Items]
Risk-free interest rate	1.60%	1.40%
Expected life (years)	5 years	5 years
Expected volatility	115.70%	153.90%
Dividend yield	0.00%	0.00%
Weighted-average grant date fair value	$ 5.00	$ 6.70