Little MEI Pharma rockets up on $25M cash injection, deep-pocket partner for PhIII AML cancer study
Can a 4-cylinder biotech with an unconventional development partner help drive a largely unknown cancer drug through Phase III on an industry track dominated by world famous Formula One teams? San Diego-based MEI Pharma has a $469 million plan in place to find out, and its shares rocketed up 50% on the news.
This morning, MEI $MEIP is taking the wraps off a development deal with Switzerland’s Helsinn designed to shepherd the HDAC inhibitor pracinostat through a pivotal study. MEI gets $20 million in near-term cash —$15 million up front with a $5 million milestone at the start of the Phase III — along with a $5 million equity investment. And there’s $444 million in milestones on the table for success, along with royalties that can be earned from Helsinn’s marketing efforts.
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