MEI Pharma (MEIP) Stock Plunges 62%

MEI Pharma, Inc. (MEIP) is under heavy pressure this morning, down 63% in pre-market trading after the company said its cancer drug failed to meet the main goal in a mid-stage study.

The drug, Pracinostat, in combination with chemotherapy drug azacitidine showed no difference in the rate of complete remission in previously untreated patients with myelodysplastic syndrome (MDS) – a type of blood cancer – against azacitidine alone. MEI Pharma said data, including duration of response, event and progression free survival and overall survival, are immature and will require longer follow-up in order to achieve meaningful conclusions.

“Our goal when we initiated this study was to build on prior data and rigorously assess the clinical benefit of Pracinostat in combination with azacitidine in MDS,” said Daniel P. Gold, Ph.D., President and CEO of MEI Pharma in a statement. “While we are disappointed with these top-line response data, we are diligently analyzing the entire data set as well as subsets from this study…”

MEIP shares recently lost $3.94 to $2.34. In the past 52 weeks, shares of San Diego, California-based oncology company have traded between a low of $3.57 and a high of $13.98. Shares are down 40.28% year-over-year ; up 47.54% year-to-date. Following the news, ROTH Capital analysts downgraded the name to ‘Neutral’ from ‘Buy’ and lowered their 12-month base case estimate to $2.50 from $14.

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