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Wednesday, August 03, 2016 7:55:11 PM
Wedbush Top Analyst Remains Sidelined on MEI Pharma Inc (MEIP) Despite Receiving Breakthrough Therapy Designation; Here’s Why
Julie Lamb, Editor — August 3, 2016, 12:37 PM EDT
MEI Pharma Inc (NASDAQ:MEIP) just received Breakthrough Therapy Designation for its key pipeline drug pracinostat, anti-tumor molecule inhibitor that combined with azacitidine treats patients with newly diagnosed acute myeloid leukemia (AML) who are aged over 75 years or ineligible for intensive chemotherapy. Between news of the designation paired with acceptance from the FDA for a proposed Phase 3 design, on the surface, MEI Pharma appears to be in great standing.
However, Wedbush analyst David Nierengarten continues to be neutral, noting, “…we remain cautious on shares as financing remains to be secured to conduct the study.” With positive clinical success but questionable financial backing to support the next stages, Nierengarten reiterates a Hold rating with a price target of $2.00, marking an almost 37% upside from where MEIP shares last closed.
What makes pracinostat special as a unique treatment for AML cancer is that it targets patients recently diagnosed, but would be otherwise past the ideal age or considered suitable to receive chemotherapy. Phase 2 for pracinostat proved to be promising, as the oral HDAC inhibitor revealed favorable synergistic activity. Meanwhile, the combination of pracinostat blended with azacitidine so far demonstrates to be both safe and well-tolerated. Yet, Nierengarten highlights a concern whether pracinostat will also prove to be as successful commercially as it is clinically when it comes to achieving sales and earnings estimates.
Nierengarten details his concerns, “We believe it could take two years for the study to fully enroll, and two-to-three years for top-line readout. We estimate the cost of funding the study could reach $30M, which would necessitate either a partner or a dilutive financing; we currently expect the latter is likely, although the release of final Ph 2 data could make a partnership more likely. The company ended March 31 with $49M in cash and equivalents.” From Nierengarten’s calculations, it could take up to two years for the Phase 3 study to fully enroll, putting MEIP in a position to likely need dilutive financing or on the back of successful final Phase 2 data, a partnership. For now, Nierengarten keeps a watchful eye on MEIP shares.
<span class='TipRanksAnalyst'>David Nierengarten</span>
David Nierengarten, 5-star ranked analyst.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, David Nierengarten is a top five-star rated analyst. The analyst is ranked #37 out of 4,071 analysts, upholding a 49% success rate and yielding a high average of 33.5% in his annual returns. However, Nierengarten on average loses 24.4% when recommending MEIP.
Bladerunner
Recent MEIP News
- MEI Pharma Board of Directors Aligns on Strategy to Advance Voruciclib and ME-344 • Business Wire • 04/11/2024 12:02:00 PM
- MEI Pharma Reports Initial Data from Clinical Study Evaluating ME-344 in Combination with Bevacizumab (Avastin®) in Relapsed Metastatic Colorectal Cancer Patients • Business Wire • 04/11/2024 12:00:00 PM
- MEI Pharma to Present at the Stifel 2024 Virtual Targeted Oncology Forum • Business Wire • 04/10/2024 12:00:00 PM
- MEI Pharma Reports Update from Clinical Study Evaluating Oral CDK9 Inhibitor Voruciclib in Combination with Venetoclax in Patients with Relapsed and Refractory Acute Myeloid Leukemia • Business Wire • 03/26/2024 12:00:00 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 02/29/2024 05:15:45 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/21/2024 09:00:17 PM
- Form S-3 - Registration statement under Securities Act of 1933 • Edgar (US Regulatory) • 02/20/2024 10:33:58 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/13/2024 10:05:14 PM
- MEI Pharma Reports Second Quarter Fiscal Year 2024 Results and Operational Highlights • Business Wire • 02/13/2024 10:05:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/17/2024 09:00:08 PM
- MEI Pharma to Present Design of Ongoing Clinical Study Evaluating ME-344 at ASCO GI Cancers Symposium 2024 • Business Wire • 01/16/2024 10:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/26/2023 10:00:41 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/22/2023 09:00:10 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/21/2023 02:26:37 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/21/2023 02:25:28 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/18/2023 09:00:09 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/11/2023 09:00:09 PM
- MEI Pharma Reports Clinical Data on Oral CDK9 Inhibitor Voruciclib at ASH2023 • Business Wire • 12/11/2023 05:00:00 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 11/15/2023 01:59:13 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/09/2023 09:06:11 PM
- MEI Pharma Reports First Quarter Fiscal Year 2024 Results and Operational Highlights • Business Wire • 11/09/2023 09:05:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/09/2023 09:00:26 PM
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