Mereo BioPharma is Poised for Potential Breakthroughs

Photo of author
Written By Keziah Monique Gayo

Mereo BioPharma Group plc (NASDAQ: MREO) has garnered attention for its notable stock rebound over the past year, coupled with optimistic sentiments from analysts.

Specializing in the development of therapeutics for oncology and rare diseases, Mereo has positioned itself as a compelling option for investors seeking exposure to innovative biopharmaceuticals.

Strategic Focus and Pipeline Highlights

Credits: DepositPhotos
  1. Setrusumab (UX143): Mereo’s flagship candidate, Setrusumab, is a novel antibody designed to inhibit sclerostin, a protein that suppresses bone formation. This drug is currently undergoing pivotal Phase 3 trials, termed ‘ORBIT’ for adults and ‘COSMIC’ for children under seven, targeting Osteogenesis Imperfecta (OI).

With Orphan Drug designation and promising Phase 2 results showing fracture reduction in OI patients, Setrusumab holds significant potential in addressing an unmet medical need with no FDA-approved treatments available.

  1. Alvelestat: Another key asset in Mereo’s pipeline, Alvelestat, is an oral small molecule targeting severe AATD-associated Lung Disease (AATD-LD), a condition affecting thousands in the US and Europe.

With Fast Track and Orphan Drug designations, Alvelestat has completed successful Phase 2 trials and is advancing towards pivotal Phase 3 studies, underscoring its potential in addressing respiratory ailments.

  1. Etigilimab: Mereo is also developing Etigilimab, an anti-TIGIT antibody aimed at enhancing anti-cancer immune responses. Currently undergoing Phase 1b/2a trials in combination with nivolumab for Clear Cell Ovarian Cancer, Etigilimab represents a novel approach in the treatment of advanced solid tumors.
  2. Out-Licensing Strategies: Additionally, Mereo has strategically leveraged its portfolio through out-licensing agreements for drug candidates such as Navicixizumab and Leflutrozole, enhancing its financial flexibility and potential for future collaborations.

Analyst Outlook and Financial Position

  1. Analyst Sentiment: Analysts have increasingly shown confidence in Mereo’s prospects, with several firms reissuing or assigning Buy ratings and price targets ranging from $6 to $8 per share. Recent commentary highlights Setrusumab’s potential to generate over $750 million in revenue, underlining its pivotal role in Mereo’s growth strategy.
  2. Financial Health: As of the first quarter of the fiscal year, Mereo reported approximately $49 million in cash and marketable securities, sufficient to fund operations through 2026. Despite this strong cash position, the company filed a prospectus to potentially raise up to $175 million, indicating proactive financial management aimed at supporting future clinical developments and commercialization efforts.

Investment Thesis and Potential Catalysts

  1. Strategic Opportunities: Mereo BioPharma presents a compelling investment case for risk-tolerant investors, driven by its diversified pipeline targeting critical unmet needs in rare diseases and oncology. The positive trajectory of key candidates like Setrusumab and Alvelestat, bolstered by supportive analyst coverage, enhances its attractiveness as a growth-oriented biopharmaceutical company.
  2. Upcoming Catalysts: With pivotal Phase 3 data readouts expected in the near term, Mereo is poised to unlock significant value through clinical milestones and potential partnerships. The outcome of these trials could potentially trigger stock price movements and further validate Mereo’s therapeutic approach in niche markets.

Strategic Positioning and Future Outlook

Credits: DepositPhotos

Mereo BioPharma Group plc stands at a pivotal juncture, characterized by promising clinical advancements, robust financial health, and positive analyst endorsements. While the biopharmaceutical sector inherently carries risks associated with clinical trials and regulatory approvals, Mereo’s strategic focus on high-impact therapies and proactive financial measures positions it favorably for future growth.

Investors considering Mereo BioPharma should closely monitor upcoming clinical data releases and market developments, as these factors are likely to influence the stock’s performance and investment appeal in the near term.


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.