SeeThruEquity Initiates Coverage on MetaStat, Inc. with a Price Target of $1.23

NEW
YORK, NY / ACCESSWIRE / June 25, 2015 / SeeThruEquity, a leading
independent equity research and corporate access firm focused on smallcap and
microcap public companies, today announced it has initiated coverage of
MetaStat, Inc. (OTCQB: MTST) with a price target of $1.23.

The report is available here: MTST
Initiation Report. SeeThruEquity is an approved equity research
contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report
will be available on these platforms. We also contribute our estimates to
Thomson Estimates, the leading estimates platform on Wall Street.

Based in Boston, MA, is a
development-stage life sciences company focused on novel diagnostics offerings
for the early identification and treatment of systematic metastasis –
cancer that spreads from a primary tumor through the bloodstream into other
areas of the body. Led by an experienced management team and Board of
Directors, MetaStat is developing an innovative lineup of proprietary diagnostics
tests, currently including MetaSite
Breast(TM) and
MenaCalc(TM), which utilize epigenetic markers to
predict the risk of distant metastasis. The company is focusing on breast,
prostate, lung and colorectal cancers, where systematic metastasis is
responsible for 90% of all solid tumor cancer related deaths. We see several
catalysts ahead over the next 12-18 months for MetaStat.

The company is led by new CEO Douglas
Hamilton, who was promoted from CFO in June. Mr. Hamilton brings a wealth of
experience to MetaStat, having served previously as CFO of SEA Medical Systems
and COO and CFO of Javelin Pharmaceuticals, in addition to operational roles at
Amgen, Pfizer, PolaRx, and Pharmacia Biotech (GE Life Sciences). We note
Javelin was acquired by Hospira, where Hamilton led the company to
commercialization and through its successful national markets
up-listing.

“We see nice momentum at MetaStat.
The company has a new CEO and is developing an innovative lineup of proprietary
diagnostic tests. It aims to bring to market its first commercial products,
targeting breast cancer, during 2016 based on CLIA and Massachusetts state
certification,” stated Ajay Tandon, CEO of SeeThruEquity. “We are
initiating coverage with a 12-month price target of $1.23 per
share.”

Additional highlights from the report
are as follows:

Novel technology provides
superior diagnostics

MetaStat’s proprietary technology
results from over 15 years of collaboration with leading scientific and
academic institutions including the Albert Einstein School of Medicine and MIT.
At the core of the technology is the identification of a common pathway for the
development of metastatic disease in solid epithelial-based tumors. The
company’s two prospective diagnostics offerings, the MetaSite Breast(TM) cancer
test and MenaCalc™ diagnostic platform, provide actionable
information regarding the metastatic potential of a patient’s tumor. Physicians
can use the diagnostics to individualize therapies and to help guide treatment
strategies including determining the utility of prophylactic chemotherapy or
surgery. We expect MetaStat to commercialize its breast cancer diagnostic
during 2016E, and believe it will launch MenaCalc™ diagnostic
platform for other solid tumors including colon, lung, and colorectal cancers,
beginning in 2017E.

Large market potential
with applications in several cancers

MetaStat’s innovative diagnostics
offerings target a large market opportunity with significant potential. The
market for global molecular diagnostic testing is estimated to be $7.5Bn.
MetaStat’s initial products, MetaSite Breast(TM), and the MenaCalc Breast(TM),
will target breast cancer. This represents a substantive opportunity for the
company, as breast cancer is the second leading cause of cancer death in women.
According to the American Cancer Society, there will be
234,190 new cases of invasive breast cancer each year in the United States, and
over 40,000 deaths due to breast cancer. MetaStat’s diagnostic offerings
address approximately 80% of newly diagnosed early stage invasive breast cancer
cases including all molecular subtypes, which represents a $271mn market opportunity
for the company.

Following the launch of its breast
cancer diagnostic offering, MetaStat has plans to commercialize MenaCalc(TM)
for other indications. MenaCalc(TM) is a diagnostics platform the company
believes will be broadly applicable to most epithelial-based tumors
(carcinomas), which make up approximately 85% of all cancers. With 1.7mn people
diagnosed with cancer each year in the United States, over time MetaStat’s
potential target patient population in the U.S. could approach 1.4mn per year.
Initially we expect the company to follow the breast cancer diagnostic offering
with MenaCalc(TM) platforms for prostate cancer, lung cancer, and colon cancer.
In aggregate, the four indications represent an addressable market of 559,712
cases, or $627mn, according to the company.

Initiate coverage with a
price target of $1.23

Our analysis of MetaStat indicates a
fair value estimate of $1.23 per share implying an upside of 300.0% from the
recent price of $0.31. We view the company as an intriguing high risk / high
reward investment opportunity in the cancer diagnostics industry.

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

About MetaStat,
Inc.

MetaStat, Inc. (MTST) is a molecular diagnostic
company that develops and commercializes diagnostic tests for early and
reliable prediction of systemic metastasis, the process by which cancer spreads
from a primary tumor through the bloodstream to other areas of the body.
MetaStat is focused on breast, prostate, lung and colorectal cancers, where
systemic metastasis is responsible for approximately 90% of all deaths. The
company’s epigenetic-based diagnostic platform technology is based on the
identification and understanding of the pivotal role of the mena protein and
its isoforms, a common pathway for the development of systemic metastatic
disease in epithelial-based solid tumors. Both the MetaSite(TM) and MenaCalc(TM)
assays are designed to accurately stratify patients based on their individual
risk of metastasis and to provide physicians with clinically actionable
information to better “customize” cancer treatment. MetaStat’s
testing platform aims to improve treatment planning decisions by positively
identifying patients with a high-risk of metastasis who need aggressive therapy
and by sparing patients with a low-risk of metastasis from the harmful side
effects and expense of chemotherapy. The company is based in Boston.

About
SeeThruEquity

SeeThruEquity is an equity research and
corporate access firm focused on companies with less than $1 billion in market
capitalization. The research is not paid for and is unbiased. We do not conduct
any investment banking or commission based business. We are approved to
contribute our research to Thomson One Analytics (First Call), Capital IQ,
FactSet, Zacks, and distribute our research to our database of opt-in
investors. We also contribute our estimates to Thomson Estimates, the leading
estimates platform on Wall Street.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE:
SeeThruEquity

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