MEI Pharma Announces $27.5 Million Private Placement

             MEI Pharma Announces $27.5 Million Private Placement

Financing Led by New Institutional Investors Vivo Ventures and New Leaf
Venture Partners

PR Newswire

SAN DIEGO, Nov. 5, 2012

SAN DIEGO, Nov. 5, 2012 /PRNewswire/ --MEI Pharma, Inc. (Nasdaq: MEIP), an
oncology company focused on the clinical development of novel therapies for
cancer, announced today that it has obtained commitments to purchase $27.5
million of its common stock and warrants in a private placement.


The financing was led by new investors Vivo Ventures and New Leaf Venture
Partners with participation from additional institutional investors, including
RA Capital Management and Three Arch Opportunity Fund, among others.

"We and Vivo Ventures are excited to have had the opportunity to build a
high-quality syndicate of long-term investors that allows MEI Pharma to
aggressively pursue development of Pracinostat," said Srini Akkaraju, M.D.,
Ph.D., Managing Director at New Leaf Venture Partners. "We are particularly
encouraged by Pracinostat's evidence of clinical activity in hematologic
malignancies with large unmet medical needs, such as myelodysplastic syndrome
and acute myeloid leukemia."

"We believe that Pracinostat has the potential to become a best-in-class
compound and that MEI Pharma's management team is equipped with the drug
development expertise to secure marketing approval and realize its significant
market potential," said Albert Cha, M.D., Ph.D., Managing Partner at Vivo

MEI Pharma has entered into a securities purchase agreement with the investors
pursuant to which the Company will sell units consisting of an aggregate of
55,000,000 shares of its common stock and warrants to purchase up to
38,500,000 additional shares of common stock. Each unit, consisting of one
share of common stock and a warrant to purchase 0.7 of a share of common
stock, will be sold for a purchase price of $0.50. The warrants will be
exercisable at $0.52 per share. Upon closing of the transaction, the warrants
will be immediately exercisable and will expire five years from the date of

MEI Pharma intends to use the net proceeds from the private placement
primarily to advance the clinical development of Pracinostat, an oral histone
deacetylase (HDAC) inhibitor acquired by the Company in August 2012, and its
isoflavone-based drug candidates.

"We are very pleased with the success of this capital raise and the expression
of confidence from high-quality healthcare investors such as Vivo Ventures and
New Leaf Venture Partners," said Daniel P. Gold, Ph.D., President and Chief
Executive Officer of MEI Pharma. "We believe that this financing will enable
us to execute the optimal clinical development and marketing approval strategy
for Pracinostat, as well as continue the development of our earlier stage drug

Stifel Nicolaus Weisel acted as the sole placement agent for the offering.
ROTH Capital Partners and Trout Capital served as advisors to the Company.

The private placement is subject to customary closing conditions and is
expected to close in December 2012.

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy any securities of MEI Pharma, Inc. nor shall there be any
sale of securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state or jurisdiction.

The units, shares and warrants offered in the private placement and the shares
issuable upon the exercise of the warrants have not been registered under the
Securities Act of 1933, as amended, or state securities laws, and may not be
offered or sold in the United States without being registered with the
Securities and Exchange Commission (SEC) or through an applicable exemption
from SEC registration requirements. The units, shares of common stock and
warrants were offered only to accredited investors. The Company has agreed to
file a registration statement with the SEC covering the common stock purchased
by the investors, as well as the common stock issuable upon exercise of the
warrants. Any offering of the Company's securities under the resale
registration statement will be made only by means of a prospectus.

About MEI Pharma
MEI Pharma, Inc. (Nasdaq: MEIP) is a San Diego-based oncology company focused
on the clinical development of novel therapies for cancer. The Company's
clinical development pipeline includes lead drug candidate Pracinostat, a
potential best-in-class, oral histone deacetylase (HDAC) inhibitor.
Pracinostat has been tested in more than 150 patients in multiple Phase I and
exploratory Phase II clinical trials, including advanced hematologic
malignancies such as myelodysplastic syndrome, acute myeloid leukemia and
myelofibrosis. The Company expects to initiate a randomized Phase II trial of
Pracinostat in combination with standard-of-care in at least one hematologic
malignancy toward the middle of 2013. In addition, MEI Pharma is developing
two drug candidates derived from its isoflavone-based technology platform,
ME-143 and ME-344. Results from a Phase I trial of intravenous ME-143 in
heavily treated patients with solid refractory tumors were presented at the
American Society of Clinical Oncology Annual Meeting in June 2012. A Phase I
clinical trial of intravenous ME-344 in patients with solid refractory tumors
is ongoing. For more information, go to

Under U.S. law, a new drug cannot be marketed until it has been investigated
in clinical trials and approved by the FDA as being safe and effective for the
intended use. Statements included in this press release that are not
historical in nature are "forward-looking statements" within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. You should be aware that our actual results could differ materially
from those contained in the forward-looking statements, which are based on
management's current expectations and are subject to a number of risks and
uncertainties, including, but not limited to, our failure to successfully
commercialize our product candidates; costs and delays in the development
and/or FDA approval, or the failure to obtain such approval, of our product
candidates; uncertainties or differences in interpretation in clinical trial
results; our inability to maintain or enter into, and the risks resulting from
our dependence upon, collaboration or contractual arrangements necessary for
the development, manufacture, commercialization, marketing, sales and
distribution of any products; competitive factors; our inability to protect
our patents or proprietary rights and obtain necessary rights to third party
patents and intellectual property to operate our business; our inability to
operate our business without infringing the patents and proprietary rights of
others; general economic conditions; the failure of any products to gain
market acceptance; our inability to obtain any additional required financing;
technological changes; government regulation; changes in industry practice;
and one-time events. We do not intend to update any of these factors or to
publicly announce the results of any revisions to these forward-looking

SOURCE MEI Pharma, Inc.

Contact: Pete De Spain, Sr. Director, Investor Relations & Corporate
Communications, +1-858-792-3729,
Press spacebar to pause and continue. Press esc to stop.