Oppenheimer Sees 232% Upside for MEI Pharma Inc (MEIP); Here’s Why


Oppenheimer analyst Leah R. Cann initiated coverage on shares of MEI Pharma Inc (NASDAQ:MEIP) with an Outperform rating and $6.50 price target, which implies an upside of 232% from current levels.

Cann wrote, “For a company at MEI Pharma’s stage of development, which is pre-approval, we primarily focus on potential future revenue to value it. Based on our expectation that MEI Pharma will launch its first product in the next five years, we estimate that total revenue will increase to $747.4 million in calendar-year (CY) 2023. However, as is the case with development-stage companies, these estimates do carry a degree of risk.”

“We estimate Helsinn could launch Pracinostat, for acute myeloid leukemia (AML) and myeloid dysplastic syndromes (MDS), in calendar-first-quarter 2022. We currently estimate Pracinostat could result in calendar 2023 product sales of $704.4 million, and CY2023 royalty income to MEI Pharma of nearly $127 million. Potential sales will be recognized in the form of royalty income by MEI,” the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Leah R. Cann has a yearly average return of 8.1% and a 46% success rate. Cann has an 0.0% average return when recommending MEIP, and is ranked #1312 out of 4567 analysts.

MEI Pharma shares are up nearly 18% to $1.97 in Thursday’s trading session.

 

  • Phillip Johnson

    Leah Cann was a board member at MEIP for 8 years so she ought to know!