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MEI Pharma (MEIP) to Report Q4 Earnings: What's in the Cards?

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MEI Pharma, Inc. (MEIP - Free Report) will provide corporate and pipeline updates when it releases fourth-quarter fiscal 2020 results.

The company has a mixed earnings surprise history, surpassing expectations in three of the trailing four quarters and missing in the other. The four-quarter average surprise is 30.46%. In the last reported quarter, the company delivered anearningssurprise of 21.43%.

Shares of MEI Pharma have gained 12.9% in the year so far against the industry’s decline of 4.5%.

Let's see how things are shaping up for this announcement.

Factors to Consider

MEI Pharma’s third-quarter fiscal 2020 revenues resulted from the recognition of fees allocated to research and development activities related to the Helsinn and Kyowa Kirin Japan License Agreements. The company, in April 2020, entered into a global license, development and commercialization agreement to further develop and commercialize ME-401 for the treatment of adult patients with relapsed or refractory follicular lymphoma (FL). MEI and Kyowa Kirin will co-develop and co-promote ME-401 in the United States. We expect the company to have generated significant revenues from the same in the fourth quarter of fiscal 2020.

In view of the ongoing COVID-19 pandemic, the company will continue focusing on keeping the impact on the ME-401 TIDAL study modest as it remains in close contact with all its sites to maintain patients on the study and keep the enrollment going, even if at a somewhat reduced rate. We expect an update on the same in the fourth quarter. TIDAL is a phase II study evaluating ME-401 as a monotherapy for the treatment of adults with relapsed or refractory FL after the failure of at least two prior systemic therapies, including chemotherapy and an anti-CD20 antibody.

In July, MEI Pharma announced that an interim futility analysis of the ongoing phase III study of pracinostat in combination with azacitidine in patients with acute myeloid leukemia (AML) who are unfit to receive standard intensive chemotherapy, undertaken by the Independent Data Monitoring Committee (“IDMC”), demonstrated that it was unlikely to meet the primary endpoint of overall survival compared to the control group. Based on the outcome of the interim analysis, the decision was made to discontinue the enrollmentof patients and end the study. The decision was based on a lack of efficacy and not safety concerns. The company is expected to provide updates on this in the fourth-quarter earnings call.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for MEI Pharma this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

Earnings ESP: MEI Pharma has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a profit of 13 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3 (Hold).

 

MEI Pharma, Inc. Price and EPS Surprise

MEI Pharma, Inc. Price and EPS Surprise

MEI Pharma, Inc. price-eps-surprise | MEI Pharma, Inc. Quote

 

Stocks to Consider

Here are some biotech stocks that have the right mix of elements to beat on earnings this time around:

Alcobra Ltd. (ARCT - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

bluebird bio Inc. (BLUE - Free Report) has an Earnings ESP of +69.18% and a Zacks Rank of 3.

Bristol Myers Squibb Company (BMY - Free Report) has an Earnings ESP of +1.20a% and is Zacks #2 Ranked.

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