Accelerated approval path for NAVI
Lighthouse | 16 July 2019
Trinity Delta view: The importance of navicixizumab to Mereo BioPharma from a DCF-valuation perspective is limited due to the linked CVR, but a deal would still be valuable to the company as it would strengthen its balance sheet and also demonstrate Mereo BioPharma’s ability to out-license assets. The outline of the Phase II design and potential accelerated approval pathway, agreed with the FDA in principle, should facilitate any partnering discussions and increase the likelihood of navicixizumab being out-licensed within the next 12 months.
We value Mereo BioPharma at £541m ($704m), equivalent to 506p/share or $25.59/ADS (fully diluted). This is based on the company’s four leading assets to be conservative, and excludes any contribution from navicixizumab.
16 July 2019
|Price (UK share)|
Mereo BioPharma develops and commercialises innovative therapeutics addressing rare and specialty diseases. These are acquired or licensed in at clinical stages from large pharmaceutical companies. The portfolio consists of four compounds that are progressing through late clinical development.
Mick Cooper PhD
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