MEI Pharma tumbles on discontinuing lead drug development

Lite Strategy

06/12/2022 12:24

** Shares of cancer drug developer MEI Pharma Inc  MEIP.O 
tumble 40.7% to 23 cents premarket
    ** Among top three pct losers across U.S. exchanges; set for
record low if losses hold
    ** MEIP and partner Kyowa Kirin  4151.T  will discontinue
developing its lead candidate, cancer drug zandelisib, except in
Japan and will have a staggered workforce reduction of ~30% as
part of the wind-down
    ** Co will focus on voruciclib and ME-344, two cancer drugs
in early stages of development
    ** BTIG downgrades stock to "neutral" from "buy", Truist
Securities to "hold" from "buy"
    ** Laidlaw & Co ("buy") cuts PT to $2 from $8, Brookline
Capital Markets ("buy") cuts to $6 from $15
    ** "With the discontinuation of the zandelisib program, we
now anticipate MEI Pharma will have its first drugs on the
market in 2028, resulting in no revenue until 2028" - Brookline
Capital Markets
    ** Stock down 85% YTD through Monday's close, after closing
down 65% on March 25 after a Jefferies PT cut 
 (Reporting by Ruhi Soni in Bengaluru;)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))