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SeeThruEquity Issues Update on M Pharmaceutical, Inc.

NEW YORK, NY / ACCESSWIRE / August 15, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on M Pharmaceutical, Inc.

The report is available here: MQ Update Note.

M Pharmaceutical, Inc. ("M Pharma", CSX: MQ, OTCQB: MPHMF, FWB:T3F2), is a development stage biomedical company focused on addressing unmet needs in the multi-billion dollar market for obesity treatment. Over the last several months M Pharma has undergone a reorganization and has new leadership focused on bringing to market novel solutions intended to improve the health and quality of life people suffering from obesity. M Pharma's pipeline is now centered on two orally-administered solutions for obesity/ weight loss: 1) Trimeo technology expandable capsules; and 2) Chelatexx (C-103) reformulated orlistat capsules. The company still retains rights to the Trimtec gastric management system and the eMosquito wearable blood monitor; however, management has opted to focus M Pharma's attention and resources on developing the Trimeo technology and C-103. We expect the company will minimize further investment in Trimtec and eMosquito and move to divest / partner these lines.

Additional highlights of the note are as follows:

C-103 acquisition to headline narrowed focus on obesity

M Pharma completed the acquisition of C-103 from Chelatexx LLC (Chelatexx) on July 15, 2016, which provides the company with a novel reformulation of Orlistat, an FDA approved medication for weight loss sold by Roche (prescription Xenical® 120mg capsules) and in Glaxo Smith Kline (OTC Alli® 60mg capsules). C-103 represents a large potential opportunity for M Pharma as orlistat is an effective weight loss medication that had peak sales of $900mn in 2007 before sales declined due to well-publicized, embarrassing side effects (steatorrhea, fecal incontinence and frequent / urgent bowel movements) and competition from generics. The C-103 reformulation aims to match orlistat's efficacy without these side effects. M Pharma has patent coverage for the C-103 reformulation of Orlistat and is pursuing a 505(b)(2) regulatory pathway for C-103, which should provide an accelerated time to market. The company believes $200mn+ in peak sales is possible for C-103 and expects to be in a position to begin marketing the product in 2019E.

Large market opportunity for Trimeo and C-103

With the addition of C-103 to its portfolio, M Pharma now has two promising, orally-administered therapies in its pipeline for obesity and weight loss (the other being Trimeo, an expandable capsule designed to displace volume in the stomach). If clinical trials are successful, M Pharma is projecting commercialization of C-103 to begin in 2019E and Trimeo to begin in 2020E, and projects peak sales potential of approximately $200mn and $130mn per year, respectively. This lineup positions the company well to address unmet needs in the multi-billion-dollar obesity market. Indeed, obesity is emerging as a global epidemic, as 27% of the world's population is overweight or obese, with 2.8mn people dying annually from being overweight / obese each year. Given the large opportunity for these two programs, M Pharma expects de-emphasize Trimtec and eMosquito. We believe the company will seek to extract value from these programs through divestures / partnerships.

Adjusting target to CAD $0.85 for M Pharma

We see the acquisition of C-103 as a significant advancement for M Pharma and are encouraged by the company's focused pursuit of the large market for obesity / weight loss therapies. Our price target moves to CAD $0.85 and is based on management's view of 330mn+ in combined peak sales for Chelatexx and Trimeo. We view M Pharma as an intriguing high risk / high reward investment targeting a large and growing segment of the healthcare industry.

Please review important disclosures on our website at www.seethruequity.com.

About M Pharmaceutical, Inc.

Formed in early 2015, M Pharmaceutical Inc. is a clinical-stage company developing innovative technologies for obesity and weight management. In addition to the intended acquisition of C-103 from Chelatexx, LLC, the Company will focus on the development of its Trimeo capsules, temporary controllable pseudobezoars for non-invasive gastric volume reduction for the treatment of obesity, for which it has exclusive rights.

M Pharmaceutical trades on the Canadian Securities Exchange (CSE) under the ticker symbol "MQ" as well as on the OTCQB as "MPHMF" and FWB (Frankfurt Stock Exchange) as "T3F2."

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.


Ajay Tandon

SOURCE: SeeThruEquity