Mereo BioPharma
London, United Kingdom

Mereo BioPharma develops and commercialises innovative therapeutics addressing oncology and rare diseases. It also has specialty pharmaceutical products that it will partner. The assets are acquired or licensed in at clinical stages from large pharmaceutical companies. The portfolio consists of six compounds that are in clinical development.

Investment Perspective

Mereo BioPharma is developing a portfolio of rare disease therapies that have been sourced from larger drug players. An appropriate selection of these will be retained for self-commercialisation. The longer-term goal is the creation of a self-sustaining speciality pharmaceutical company that addresses orphan and rare diseases. In the near term these clinical assets are progressed to value-inflection points and then partners are sought. The partnering deals will likely be structured to provide funding for the continuing development operations, yet retaining a sizeable element of longer-term upside. The company has a cash runway extending to mid-2020. We have updated our rNPV model to 412p/share or $20.60/ADS (fully diluted).

Market information



Private placement raises $70m (£56m)
Lighthouse | 04 Jun 2020
Funding deals worth up to $33m announced
Lighthouse | 11 Feb 2020
Additional ASTEROID data supports progression
Lighthouse | 15 Jan 2020

Recent News

Mereo strengthens management team
30 Jun 2020
Result of General Meeting
30 Jun 2020
FY19 results
16 Jun 2020
Completion of $70m private placement
04 Jun 2020