MEI Pharma, Inc. (NASDAQ:MEIP)

CAPS Rating: 2 out of 5

A development stage company, engaged in the clinical development of the anti-cancer drug phenoxodiol.

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Member Avatar zzlangerhans (99.85) Submitted: 12/26/2014 12:52:56 AM : Outperform Start Price: $3.90 MEIP Score: +5.28

When I'm thinking about risking money on a sketchy, speculative biopharma it always helps to start out with a green thumb on CAPS (if I don't already have one open with a negative score of 70 points). Aside from the fact that it's a good way to "flash freeze" my opinion about the stock at that moment in time, it's a way to test out my thesis risk free. If I happen to peg the bottom and my pick gives me twenty quick points, I can pretend I care about my CAPS score and feel good about myself even though I missed out on the profits.

When thinking about MEI Pharma and pracinostat, it's important to remember the provenance of the drug. Pracinostat was acquired from S*Bio for 0.5M in stock and 75M in contingent payments. The PR for the deal can be seen here http://www.meipharma.com/news/2012/08/08/mei-pharma-acquire-pracinostat-potential-best-class-hdac-inhibitor

As a general rule, compounds acquired so cheaply don't have a bright future ahead of them. They've often already failed in clinical trials, athough this fact can be easy to conceal if the drug never made it to phase III development. Obviously, if the drug was more promising S*Bio would have developed it themselves or licensed it out under better terms. Why would MEI buy a hopeless, failed drug and progress it through further trials? In order to make their shareholders believe management is doing more than sitting back in their leather chairs, playing Minesweeper, and collecting fat salaries. It's also good justification for a painful reverse split and further dilution, the latest of which came earlier this month. Interestingly, the dilution at 4 came at the bottom of a steep decline from 8 just a few weeks earlier, raising the question of who knew the financing was coming and shorted the stock into it.

Needless to say, the cheapness of the Pracinostat acquisition, the significant dilution ahead of topline phase II data in March, and the behavior of the stock don't bode well for the outcome of ongoing trials of Pracinostat in MDS and AML. On the other hand, the interim data that was presented from the AML trial didn't look bad.

Will MEI recover ahead of topline data from the placebo-controlled MDS trial in March or the frontline AML trial in June, or will the share price continue to follow downward momentum? It's hard to say at this point, but the risk/reward equation is at least starting to look interesting.

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Member Avatar scrubs62074 (63.83) Submitted: 2/13/2013 11:17:30 AM : Outperform Start Price: $5.03 MEIP Score: -52.83

High Volume Breakout on 02/13/13

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Member Avatar tcampbellla (79.51) Submitted: 9/10/2008 3:37:08 PM : Underperform Start Price: $16.08 MEIP Score: +141.54

Did this go up for any logical reason?

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Member Avatar sausagegirl (< 20) Submitted: 4/16/2008 12:10:27 PM : Outperform Start Price: $17.58 MEIP Score: -130.51

It won't be fastest growing company but it will be one that steadily rises due to the fact the more and more people are trying to find the cure for cancer with any kind of research and development this company is ahead of some of the games that are being played right now. Anyone and everyone is throwing in their hats to get a piece of cancer research because of the fact that everyone wants to be recognized as the person or company that cured cancer.

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Member Avatar equalfuture (21.18) Submitted: 4/12/2008 8:39:54 PM : Outperform Start Price: $17.76 MEIP Score: -133.83

Tharlow likes it...

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Member Avatar TopCanoeist (78.24) Submitted: 4/11/2008 11:02:47 AM : Outperform Start Price: $15.96 MEIP Score: -129.07

Potential drug in pipeline for "orphan" cancer (orphan as per FDA) (pancreatic cancer) ref. news below

Many potential drugs are discarded during clinical test but a breaktrhrough drug can reaps substantial rewards!

Therefore follow-up updates closely at every stage of clinical tests!
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NEW CANAAN, CT--(MARKET WIRE)--Mar 25, 2008 -- Triphendiol was recently granted orphan drug status by the U.S. Food and Drug Administration (FDA) for malignant melanoma and for the treatment of cholangiocarcinoma, bile duct cancer.

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Member Avatar Biotech2008 (69.61) Submitted: 1/4/2008 10:06:38 PM : Outperform Start Price: $16.26 MEIP Score: -122.34

applefoot @2.86

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Member Avatar tharlow (88.70) Submitted: 11/9/2007 12:05:47 AM : Outperform Start Price: $18.00 MEIP Score: -121.54

This company has a portfolio of next-generation cancer drugs with blockbuster potential. Look no further for the next Genentech.

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Member Avatar RBBioContest06 (74.56) Submitted: 5/31/2006 10:29:35 PM : Outperform Start Price: $19.02 MEIP Score: -146.92

Picked by GeezerRob

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