UPDATE: Wedbush Initiates Coverage on MEI Pharma with Outperform Rating, $12 PT as Best-in-Class Pracinostat Should Shine

In a report published Thursday, Wedbush analyst David M. Nierengarten initiated coverage on MEI Pharma MEIP with an Outperform rating and $12.00 price target. In the report, Wedbush noted, “MEI Pharma is developing pracinostat, a best-in-class oral histone deacetylase inhibitor (HDAC inhibitor), in our view, and it is currently in Phase II development for the treatment of myelodysplastic syndrome (MDS) and acute myelogenous leukemia (AML). Key top-line data from the company's three Phase II trials of pracinostat in front-line AML, refractory and front-line MDS are likely to read out in mid- to late 2014. Phase I data of pracinostat in combination with azacitidine (Vidaza) generated complete responses in 8 of 10 patients, with 5 of the 10 patients able to receive a bone marrow transplant. This best-in-class response rate is consistent with pracinostat's superior pharmacokinetic/dynamic profile, and our view is that, despite the small number of patients, likely to be continued in the proof-of-concept Phase II studies being conducted.” MEI Pharma closed on Wednesday at $7.97.