MEI Pharma Inc. shares rose as much as 51% in pre-market trade Monday after the company said it entered a $20 million deal with Swiss pharmaceutical group Helsinn to license, develop and commercialize its leukemia drug, and that Helsinn would also make a $5 million equity investment in the company. As part of the agreement, MEI Pharma will receive $20 million in near-term cash payments and up to $444 million in potential milestone payments, as well as royalties on future sales. The drug, Pracinostat, aims to treat acute myeloid leukemia and is “phase III-ready,” the company said, with Helsinn funding global development of the drug as part of the new agreement. MEI Pharma shares rose 20.2% over the last three months, compared with a 6.1% rise in the S&P 500 .
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