MEI Pharma (NASDAQ:MEIP) and Japan's Kyowa Kirin (OTCPK:KYKOF) on Monday said they would end global development of investigational cancer treatment zandelisib outside of Japan for B-cell malignancies.
Shares of MEIP tumbled 33.5% to $0.26 after hours.
The decision to discontinue development came after the companies received guidance from a late Nov. meeting with the U.S. FDA.
"Following the November meeting, the companies concluded that a clinical trial consistent with the recent FDA guidance, including modification of the COASTAL trial, would likely not be feasible to complete within a time period that would support further investment," MEIP and KYKOF said in a statement.
"In light of FDA’s guidance, we no longer believe clinical development can be completed within a time period that would support further investment, or with sufficient certainty of the regulatory requirements to justify continued global development efforts," MEIP CEO Daniel Gold commented.
MEIP also separately announced a strategic realignment, including a workforce reduction.
