Cantor Remains Positive on MEI Pharma Inc Following Failed Phase II Study Results
Cantor’s healthcare analyst Daniel Brims weighed in today with an optimistic view on MEI Pharma Inc (NASDAQ:MEIP), after the company's cancer drug failed to meet the main goal in a mid-stage study, sending shares plunging 69 percent. The analyst reiterated a Buy rating on the stock with a $14 price target.
Brims noted, "While the response rate was the primary endpoint of this study, we believe durability endpoints are the more important measure of efficacy, and this study is ongoing, with too few events for either an assessment of progression free survival or overall survival. We believe these data will be the deciding factor in continuing development for MDS, and we expect these data before YE2015. We remain confident in the potential of pracinostat in AML/MDS and are maintaining our BUY rating."
Furthermore, "We believe duration endpoints are the better gauge of a drug's efficacy than response rate alone, and expect these data to be presented in 2015 as more events accrue. We expect MEIP to present full data from the phase 2 AML trial at EHA (Vienna, Austria, June 11-14) and mature data for the duration endpoints from the phase 2 MDS study at ASH (Orlando, FL, Dec. 5-8)."
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Daniel Brims has a total average return of 20.0% and a 57.7% success rate. Brims has a 23.1% average return when recommending MEIP, and is ranked #582 out of 3544 analysts.