In a March 21 research note, H.C. Wainwright & Co. analyst Andrew Fein wrote that MEI Pharma Inc.'s (MEIP:NASDAQ) oral PK3K delta inhibitor, ME-401, differentiates itself from other PI3K inhibitors. This and other thoughts he shared in the report followed investor meetings that his firm hosted in New York for MEI's management.
Fein noted that ME-401 stands out in the PI3K inhibitor pack because of its pharmacokinetics and pharmacodynamics, specifically its preferential tumor exposure, fast plasma clearance, significant half-life and long duration in the target. "We think ME-401's large therapeutic window, derived largely from its differential tumor versus plasma exposure, may be key for pushing up efficacy and limiting toxicity," he added.
ME-401 also boasts a much better efficacy and safety profile than other PI3K inhibitors, Fein pointed out. Just this week, MEI presented data from its Phase 1b study in patients with indolent B-cell malignancies, which showed a further improved safety profile in a specific cohort. Specifically, patients who proactively switched from a continuous dosing schedule to an intermittent one at Cycle 3, versus those who changed from continuous to intermittent after Cycle 4, fared better in terms of adverse events. However, both groups maintained a high overall response rate, at 80% and 82%, respectively.
Fein highlighted that if these data are reproduced in MEI's ongoing Phase 2 registration study for ME-401 then it is likely the inhibitor's efficacy and safety profile would "surpass the regulatory bar in thirdline follicular lymphoma." This would make it an attractive option for physicians treating this disease, which could translate to a fast uptake of the therapeutic.
Also, due to its superior safety profile, ME-401 could be considered as a component of combination therapy, which "could unlock significantly larger clinical and commercial opportunities traditionally inaccessible to PI3K inhibitors," Fein pointed out.
About MEI Pharma, Fein concluded, "We continue to believe that it possesses a strong and balanced pipeline that has been underappreciated by the Street."
H.C. Wainwright & Co. has a Buy rating and a $10 per share price target on MEI, whose stock is currently trading at around $3.03 per share.
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Disclosures from H.C. Wainwright & Co., MEI Pharma Inc., First Take, March 21, 2019
Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.
I, Andrew S. Fein, Alicia Yin, Ph.D., Li Wang Watsek and Matthew Caufield, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst's household has a financial interest in the securities of MEI Pharma, Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of February 28, 2019 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of MEI Pharma, Inc.
Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did not receive compensation from MEI Pharma, Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in MEI Pharma, Inc. as of the date of this research report.
H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.
