After MEI Pharma Inc. entered into a deal with the Swiss company Helsinn to license, develop and makket its leukemia drug Pracinostat, its shares went up by more than 51% in pre-market trade on Monday. The deal was worth $20 million, while $5 million equity investment was also being done by Helsinn. As the agreement states, $20 million would be received by MEI Pharma in near-term cash payment while a maximum of $444 million in potential milestone payments.
The leukemia drug will be developed to cure severe cases of myeloid leukemia, which according to the company, has completed its “third phase” of preparation. The development of the drug Pracinostat on global level will be done by Helsinn as part of the new agreement both companies have entered into.
MEI Pharma shares have risen by 20.2% in the past three months, whereas there was a 6.1% increase in the S&P 500.
The MEI Pharma had been doing efforts for the production of this drug since a long time. Leukemia has been known to endanger many lives and not allow people to live their lives in a normal way like other people do. Severe cases of leukemia have even been known to be fatal and in that case, the company has developed this new drug, Pracinostat, in collaboration with the Swiss Pharmaceutical company Helsinn.
Although the striking of this deal has increased the shares of MEI Pharma by a huge margin, but looking on the brighter side, the release of the new drug in the market would be a source of treatment of various patients suffering from severe cases of leukemia globally. If you look at the broader prospect of all of this, it has been a great service to humanity done by MEI Pharma and hopefully, the patients suffering from leukemia would not have to go through such torment in future.