$MEIP
MEI Pharma Should Be Bought Ahead Of ASH Conference
Nov. 4, 2015 7:40 AM ET | About: MEI Pharma, Inc. (MEIP)
Pracinostat Phase 2 data presented at ASH will illustrate survival benefit in AML and favorable outcomes in MDS patients.
MEI Pharma also has two other promising clinical stage drugs in the pipeline with PWT143, (PI3K Delta Inhibitor) and a novel mitochondrial inhibitor ME-344 which has shown impressive results.
With several drugs in the pipeline, a hoard of cash, and the initiation of a Phase 3 trial for Pracinostat in elderly AML now is a good time to buy.
Current $60M market cap should enable an easy 50% gain in short term.
I have written about MEI Pharma (NASDAQ:MEIP) in the past detailing why the stock is a good buy on upcoming catalysts. Well, that upcoming catalyst arrives on December 5th with the kick off of the American Society of Hematology meeting. MEI Pharma will present data from the Phase 2 clinical trials of Pracinostat in elderly Acute Myeloid Leukemia (AML) and myelodysplastic syndrome. Both sets of data will be positive and will justify moving Pracinostat into Phase 3 studies for AML. Those that follow my articles know I have a pretty good record predicting which drugs will move forward in development. I base my catalyst investment decisions on the data, the available drugs for that disease state and picking the brains of my colleagues in the medical profession. I was called crazy by many, including well known biotech analyst Adam Feuerstein, when I wrote an article illustrating why Cytokinetics (NASDAQ:CYTK) heart failure drug Omecamtiv Mecarbil would succeed in Phase 2 studies and move to Phase 3. Last week Cytokinetics announced positive trial results for the drug and the stock has rocketed up over 50%. Will Pracinostat ultimately be approved for treating elderly AML? I don't know, but I do know the Phase 2 data is positive and the drug will advance to Phase 3 and the stock will increase accordingly in the short term. In addition to Pracinostat, MEI Pharma also has two other promising clinical stage drugs in the pipeline with PWT143, (PI3K Delta Inhibitor) and a novel mitochondrial inhibitor ME-344 which has shown impressive results to date. With Pracinostat moving into Phase 3 clinical trials for AML, a healthy pipeline and over $60M in cash one would think the stock would have a market cap of at least $100M. The stock currently trades below cash on hand with a market cap of only ~$60M. Now is the time to invest. Easy 50% gain following ASH.
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