MEI Pharma Inc – (NASDAQ: MEIP)
MEI Pharma stocks have been plummeting today; falling by nearly 70% so far (12:44). The drop is due to the latest release of clinical testing data of their investigatory cancer drug, Pracinostat. So, today we’ll talk about the trial results and why investors are dumping the stock left and right. Let’s get right to it…
MEI Pharma Pracinostat Results
The Pracinostat study was designed to figure out how effective it was to combine Pracinostat with azacitidine in the treatment of patients with previously untreated intermediate-2 or high-risk myelodysplastic syndrom, also known as MDS. This study in particular tracked a total of 102 patients at 19 different locations throughout the United States with a goal of increasing the number of patients that reached complete remission. Unfortunately, the results were far less than desirable.
Upon the release of data, investors found at that when combining azacitidine with Pracinostat, there was no notable difference in the rate of complete remission when compared to those treated with azacitidine alone. Not only did the combination of the two treatments seem to not work, it actually caused higher occurrences of fatigue, gastrointestinal toxicities, and myelosuppression.
The company has however made it a point to explain that data from the study is still imature and will require more follow-up work in order to reach a meaningful conclusion. Nonetheless, the news we got in the data from the study was less than desirable.
How MEIP Stocks Reacted
As mentioned above, it’s abundantly clear that investors are not happy with the results of the phase 2 clinical testing of Pracinostat. As a result, the value of the stock fell dramatically in morning trading Monday. So far today (12:58), the company’s stock has lost $4.27 per share or 67.78% and is currently trading at $2.03 per share.
Will MEI Pharma Stocks Bounce Back?
Keeping the reason for the fall in mind, I don’t think we’ll be seeing any substantial recovery any time soon. Unfortunately, they have spent quite a bit of money on the Pracinostat offering and it seems like the offering may be a flop. So, investors will most likely be weary of this stock for months to come at the very least.
What Do You Think?
Do you think MEI Pharma stocks will bounce back any time soon? Let us know in the comments below.