Stock Alert: MEI Pharma Shares Surge 77% In Pre-Market

(RTTNews) - Shares of MEI Pharma Inc. (MEIP) are soaring over 77% in pre-market today, the company entered into a global license, development and commercialization agreement with Kyowa Kirin Co. Ltd. to further develop and commercialize MEI's ME-401, an oral, once-daily, investigational drug-candidate, selective for phosphatidylinositol 3-kinase delta, in clinical development for the treatment of B-cell malignancies.

MEI Pharma and Kyowa Kirin would co-develop and co-promote ME-401 in the U.S., with MEI booking all revenue from U.S. sales. Kyowa Kirin has exclusive commercialization rights outside of the U.S.

Under the terms of the agreement, MEI would receive a $100 million upfront payment from Kyowa Kirin. MEI is also eligible to receive up to $582.5 million in additional payments from Kyowa Kirin depending on the achievement of certain U.S. and ex-U.S. development, regulatory and commercial milestones.

MEIP has been trading between $0.72 and $3.41 in the past one year, and closed Monday's trade at $1.67, down 4 cents or 2.34%. The stock is currently trading at $2.96, up $1.29 or 77.25% in the pre-market trading session.