Setrusumab partnered with Ultragenyx
Lighthouse | 18 December 2020
Trinity Delta view: Mereo BioPharma continues to deliver on its promises. We view Ultragenyx as an ideal partner to complete development of setrusumab, with its established infrastructure boding well for its commercialisation in the US and rest of the world. The terms of the deal reflect the quality of the clinical package to date and underscores the value of retaining commercialisation rights for Europe. Despite this positive news, we emphasise that investor attention will focus on its anti-TIGIT programme. Etigilimab will start a key Phase Ib/II PD-1 combination trial in a variety of solid tumours shortly, with top line results expected during H221. Pending an update following this deal, we suspend our valuation and forecasts with the intention of reinstating them as soon as practicable. For context, our prior valuation of Mereo BioPharma was $741m, equivalent to $5.06/ADS (fully diluted).
18 December 2020
|Price (US ADS)||$2.21|
Mereo BioPharma develops and commercialises innovative therapeutics addressing oncology and rare diseases. These are acquired or licensed in at clinical stages from large pharmaceutical companies. The portfolio consists of six compounds that are progressing through late-stage clinical development. One of these is a promising anti-TIGIT programme entering Phase Ib/II trials in a variety of solid tumours.
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