NEW YORK (TheStreet) -- Shares of MEI Pharma (MEIP) - Get Report rose 1.55% to $1.96 in late morning trading Tuesday as investors swooped into the stock following its significant decline on Monday.

The stock plummeted more than 70% to a 52-week low of $1.87 on Monday after the oncology company announced its cancer drug Pracinostat failed to meet its main goal in a mid-stage trial.

The drug, in combination with chemotherapy drug azacitidine, showed no difference in the rate of complete remission in previously untreated patients with myelodysplastic syndrome (MDS), a form of blood cancer, when compared to azacitidine only.

"While we are disappointed with these top-line response data, we are diligently analyzing the entire data set as well as subsets from this study. Specifically, we are trying to fully assess the impacts of discontinuations on clinically important efficacy outcomes, including duration of response, event and progression free survival and overall survival," said Daniel P. Gold, Ph.D., President and CEO of MEI Pharma, in a statement.

"These findings will be important to inform the future development path for Pracinostat," he continued.

In the wake of the report, Roth Capital downgraded MEI Pharma to "neutral" from "buy" and slashed its price target to $2.50 from $14. 

More than 5.5 million shares had changed hands as of 11:40 a.m., compared to the daily average volume of 1,153,520.

MEIP data by YCharts

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