Magician Lord 2 is a cancelled sequel for ADK‘s sidescrolling action game, that was in development for the Neo Geo Pocket. When SNK released his handheld system Neo Geo Pocket in 1998, its historic ally ADK started to work on the new platform. ADK thought to resume one of its past franchise: Magician Lord.
A sequel was already in development in the mid nineties exclusively for Neo Geo CD (alongside Crystalis 2) but it was eventually canned. The NGP game was a direct sequel of the cult Neo Geo title, with Elta (the original protagonist) that could morph in even more creatures than previously, although game mechanics looked more oriented toward a Metroid/Castlevania type of gameplay.
Unfortunately even this time Magician Lord 2 and another NGP game, World of Heroes, was never released because ADK went bankrupt in early 2000. Recently an alpha version of Magician Lord 2 which was available to the japanese press got unearthed thanks to Puyo/Gamekult.
For more details (in french) read the article on Gamekult.