MEI Pharma Inc’s Cancer Drug Fails Phase II Study; Cowen Remains Positive
MEI Pharma Inc (NASDAQ:MEIP) shares are down almost 70% today following the news that the company's cancer drug Pracinostat failed to meet the primary endpoint of a Phase II study in patients with previously untreated intermediate-2 or high-risk myelodysplastic syndrome (MDS).
Subsequently, Cowen analyst Boris Peaker came out with a research note on MEIP, reiterating an Outperform rating, and stating that the stock has dropped to cash value.
Peaker noted, "Given the disappointing results released today and no future studies planned at the moment, MEIP is likely to trade at around cash value (~$2/share). Should the trial show any signs of efficacy in the secondary analyses, we expect MEIP shares to rebound."
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Boris Peaker has a total average return of 43.4% and a 71.3% success rate. Peaker has a -9.6% average return when recommending MEIP, and is ranked #18 out of 3544 analysts.