Momentum Stock Watch: MEI Pharma, Inc. (MEIP)

Company Profile:

MEI Pharma, Inc., an oncology company, focuses on the clinical development of drugs for the treatment of cancer. The companys clinical drug candidate includes Pracinostat, an orally available histone deacetylase inhibitor, which is in Phase II clinical trial for the treatment of hematologic diseases, such as acute myeloid leukemia and myelodysplastic syndrome. Its clinical development pipeline also includes ME-344, an isoflavone-derived mitochondrial inhibitor drug candidate that is in Phase I clinical trial to treat refractory solid tumors; and PWT143, an oral inhibitor of phosphatidylinositide 3-kinase, which is in pre-clinical stage for the treatment of cancer. The company was formerly known as Marshall Edwards, Inc. and changed its name to MEI Pharma, Inc. in July 2012. MEI Pharma, Inc. was founded in 2000 and is based in San Diego, California.

Recent News:

On Dec. 10, MEI Pharma, Inc. announced the appointment of Christine White, M.D., as Chairman of the Board of Directors. Dr. White joined the Company’s board in August 2010 and has served as its Lead Director since the retirement of former Chairman, Professor Bryan R.G. Williams, Ph.D., in January 2013.

On Dec. 7, MEI Pharma, Inc. announced positive results from a Phase II study of its investigational drug candidate Pracinostat in combination with azacitidine (marketed as Vidaza®) in elderly patients with newly diagnosed acute myeloid leukemia (AML).

Investors are now awaiting MEI Pharma, Inc.’s results, which is due to release on or around 2016-02-05 for its three-month period ended on 2015-12-31.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

MEIP’s strengths can be seen in its strong growth and robust efficiency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI is increasing to 52.87. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate MEI Pharma, Inc. (MEIP) a Strong BUY.