Funding deals worth up to $33m announced
Lighthouse | 11 February 2020
Trinity Delta view: Mereo BioPharma has an innovative rare disease portfolio with four key assets, two of which it plans to commercialise (at least in part) itself. These include the lead programme, setrusumab for OI (osteogenesis imperfecta), which is on track to initiate a pivotal Phase IIb/III paediatric study in Europe this year. An important FDA meeting, expected in Q120, should help define the US approval pathway.
Mereo BioPharma faced a clear funding requirement as the cash runway extends to end-H120; however, the overhang of the Woodford stake (19.55%, now held by Link) was seen as an impediment. These new deals with Novartis and Aspire Capital provide short term funding and flexibility towards the medium-term funding requirement.
We maintain our valuation of Mereo BioPharma at £442m ($574m), equivalent to 412p/share or $20.60/ADS (fully diluted).
11 February 2020
|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.
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