Entering an important 12 month period
Update | 19 September 2019
Mereo BioPharma made significant progress strategically during H119 with the completion of the merger with OncoMed, and now is entering a critical 12-month period. Full 12-month data from the Phase II study in osteogenesis imperfecta (OI) with setrusumab (BPS-804) is due in Q419; promising 6-month data in the open-label arm has already been reported. Phase II data with its second rare-disease asset, alvelestat (MPH-966), in α-1 antitrypsin deficiency (AATD) is expected in mid-2020. The company will also be looking to partner its non-core assets to strengthen its balance sheet, with negotiations on acumapimod (BCT-197) for acute COPD most advanced. We maintain our valuation of Mereo at 506p/share or $25.59/ADS.
|Year-end: December 31||2017||2018||2019E||2020E|
|Adj. PBT (£m)||(43.3)||(35.1)||(39.0)||(29.3)|
|Net Income (£m)||(38.8)||(32.0)||(34.2)||(26.2)|
|Adj. EPS (p)||(51.9)||(42.2)||(40.3)||(26.5)|
19 September 2019
|Price (UK share)|
|Enterprise Value ||£38.9m|
|Shares in issue (shares)|
|12 month range||77.5-277.0p|
|Company Code ||MPH.L|
Mereo BioPharma develops and commercialises innovative therapeutics addressing 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.
Mick Cooper PhD
+44 (0) 20 3637 5042
+44 (0) 20 3637 5043
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