Which of These Stocks Is More Likely To Climb? MEI Pharma Inc (MEIP) or ImmunoGen Inc (IMGN)
New York, NY – GDP INSIDER – 03/24/2015.
This article discusses two companies: MEI Pharma Inc (NASDAQ:MEIP) and ImmunoGen Inc (NASDAQ:IMGN)
MEI Pharma Inc (NASDAQ:MEIP) shares plummeted yesterday, with the stock falling 69.73% or $4.37 to close at $1.93 on very heavy trading of 28.219 million shares, compared to its three month average trading volume of 1.153 million. The rout began for the small molecule cancer treatment developer after it announced that its latest potential cancer treatment drug Pracinostat, failed to meet its main objectives in a mid-stage trial. The drug was supposed to work in conjunction with the chemotherapy drug Azacitidine to improve the remission rates of patients with myelodysplastic syndrome, but the trial found no significant benefit. The sell-off has now pushed MEI Pharma Inc’s RSI down from over 70 to 19.57 and should mean that the share price will rebound over the near term, making it a good opportunity to buy while the stock is potentially significantly undervalued, although it is unlikely to meet its one year target estimate of $13.00 anytime soon.
ImmunoGen Inc (NASDAQ:IMGN) rallied strongly yesterday with the stock climbing 16.80% or $1.25 to close at $8.69 on very active trading with more than 10.692 million shares changing hands compared to its three month average trading volume of 1.610 million. The novel anti-cancer therapeutics developer started to gain, after it announced that it is entering into a licensing agreement with the Japanese company Takeda Pharmaceutical (OTCMKTS:TKPYY). The agreement will provide ImmunoGen Inc with a $20 million upfront payment, which will allow Takeda Pharmaceutical’s to use ImmunoGen Inc’s technology to develop cancer treatments and should net $210 million more in milestone payments over the length of the agreement. ImmunoGen Inc has been performing very well so far this year with the stock up 42.46%, and trading well above its one year target estimate of $8.02. With RSI of 65.98 the stock could still climb higher, making it a hold with a view to buy at this time.
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