Roth Capital Reiterates Buy On MEI Pharma Following F2014 Results


In a research report released yesterday, Roth Capital analyst Joseph Pantginis reiterated a Buy rating on MEI Pharma (NASDAQ:MEIP) with a price target of $20, following the company’s release of its F2014 results. The company had an EPS of $1.35 and ended the quarter with $48.8 million in cash.

Pantginis noted, “The financial results currently do not impact our investment case. MEIP is progressing towards an eventful end of 2014, in our view, with preliminary data from two phase II studies of pracinostat expected to be presented in December 2014, presumably at ASH. This will be followed in 1Q15 by data from the front-line MDS study. We believe that by December 2014, MEIP will conclude its IND-enabling preclinical studies of their PI3K-delta inhibitor, PWT143, with an IND filing in 2015 and subsequent phase I. MEIP’s mitochondrial inhibitor ME-344 entered a phase Ib study in May 2014. Regarding pracinostat, recall that KOLs see a real need for HDAC inhibitors in the treatment of myelodysplastic syndrome (MDS), particularly in high-risk and refractory patients. They attribute previous HDACi failures and no studies in MDS to lack of company leadership. We believe physicians view the high rates of CR in early pracinostat studies as promising and believe the current formulation as a nice equilibrium between potency and minimized tox. We reiterate our view that MEI offers a compelling value proposition having dramatically changed with pracinostat taking center stage. We continue to be encouraged by promising activity in patients with poor prognosis and limited treatment options, and by management’s diligent background activities with several clinical studies set to read out by year end and in 1Q15.” Pantginis added, “We view MEIP as an exciting value proposition given 1) signs of clinical anti-tumor activity seen with Pracinostat and ME-344 and 2) management’s strategic plan and rapid progress towards advancing the clinical development of these drugs.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph Pantginis has a total average return of -5.7% and a 43.2% success rate. Pantginis has a -3.2% average return when recommending MEIP, and is ranked #3230 out of 3277 analysts.

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