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Mereo BioPharma Group plcNasdaqCM:MREO Stock Report

Market Cap US$44.4m
Share Price
US$0.28
US$1.75
84.1% undervalued intrinsic discount
1Y-87.2%
7D16.9%
1D
Portfolio Value
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Mereo BioPharma Group plc

NasdaqCM:MREO Stock Report

Market Cap: US$44.4m

Mereo BioPharma Group (MREO) Stock Overview

A biopharmaceutical company, develops and commercializes therapeutics for the treatment of rare diseases in the United Kingdom and the United States. More details

MREO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends0/6

Rewards

Revenue is forecast to grow 52.41% per year

Risk Analysis

Makes less than USD$1m in revenue ($500K)

Does not have a meaningful market cap ($44M)

Currently unprofitable and not forecast to become profitable over the next 3 years


MREO Community Fair Values

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Mereo BioPharma Group plc Competitors

Price History & Performance

Summary of share price highs, lows and changes for Mereo BioPharma Group
Historical stock prices
Current Share PriceUS$0.28
52 Week HighUS$3.05
52 Week LowUS$0.20
Beta0.19
1 Month Change-4.03%
3 Month Change-29.37%
1 Year Change-87.23%
3 Year Change-71.38%
5 Year Change-91.96%
Change since IPO-95.72%

Recent News & Updates

Analysis Article • May 02

Here's Why We're Not Too Worried About Mereo BioPharma Group's (NASDAQ:MREO) Cash Burn Situation

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although...

Recent updates

Analysis Article • May 02

Here's Why We're Not Too Worried About Mereo BioPharma Group's (NASDAQ:MREO) Cash Burn Situation

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although...
Analysis Article • Sep 27

Here's Why We're Not At All Concerned With Mereo BioPharma Group's (NASDAQ:MREO) Cash Burn Situation

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...
Analysis Article • May 19

We're Not Very Worried About Mereo BioPharma Group's (NASDAQ:MREO) Cash Burn Rate

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...
Analysis Article • Apr 07

Is Mereo BioPharma Group (NASDAQ:MREO) Weighed On By Its Debt Load?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Analysis Article • Nov 25

Is Mereo BioPharma Group (NASDAQ:MREO) Using Debt Sensibly?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...
Seeking Alpha • Oct 17

Mereo stock rises 12% on FDA fast-track status for lung disease drug alvelestat

The U.S. Food and Drug Administration (FDA) granted fast track designation to Mereo BioPharma alvelestat (MPH-966) to treat Alpha-1 Antitrypsin Deficiency (AATD)-associated lung disease. The London-based company said it plans to have an end-of-phase 2 meeting with the FDA to discuss the design of a registration-enabling study for alvelestat for AATD-associated lung disease, including a potential opportunity for an accelerated approval pathway. AATD is a genetic disorder characterized by low levels of a protein called alpha-1 antitrypsin (A1AT). The disorder can cause pulmonary emphysema, a progressive lung disease, which can cause shortness of breath, chronic cough and asthma, according to the company. Mereo said it intends to provide update on Oct. 31 on a phase 2 trial called ASTRAEUS of alvelestat in severe AATD-associated emphysema — top-line data from which were reported in May. MREO +12.01% to $1.12 premarket Oct. 17
Seeking Alpha • Oct 03

Rubric Capital boosts Mereo BioPharma board nominees slate to five

Rubric Capital Management has boosted the number of nominees it is backing for Mereo BioPharma (NASDAQ:MREO) to five. The fifth nominee is Rubric founder David Rosen. In a letter to shareholders, Rosen wrote that "the problems on the Board of Mereo (MREO) run deeper than we anticipated." The letter also criticizes Mereo's (MREO) Board for rejecting "our request for a special meeting based on the flimsiest of pretexts." Rubric owns ~14% of the company's outstanding shares. The stock is up 4% in Monday afternoon trading. In September, Mereo (MREO) slammed Rubric for rejecting an offer to put a Rubric principal and another director on the company's board.
Seeking Alpha • Sep 22

Mereo BioPharma: An Activist Pressure With A Potentially Significant Upside

Summary This is an update on the previously written report on Mereo BioPharma Group, a London-based clinical-stage biopharma. Frustrated with the lack of engagement from the management, the activist filled a request for a special shareholder meeting aiming to replace 4 incumbent directors. Rubric Capital, the activist, plans to monetize the pipeline assets, reduce cash burn and distribute excess cash. Activist values the company at $4 per share vs $1/share price today. Despite a potentially large upside, there are several material risks that need to be considered. This is an update following my June report on Mereo BioPharma Group (MREO), a London-based clinical-stage biopharma. More background information on the company and the activist can be found there. A quick recap of main developments - at the time of the initial pitch MREO was trading 10% below $0.87/share of net cash, with the activist, Rubric Capital (14% stake), urging the board to explore strategic alternatives. The main objective of the activist was to monetize the royalty rights to the Setrusumab, a potential treatment for osteogenesis, cost-sharing partnership agreements, and wind down the rest of the pipeline. The activist identified insurmountable costs associated with the development of an early-stage pipeline and the increasing cost of capital as reasons for the change. Rubric valued MREO at $4 per ADS (vs 0.8/share price of MREO at the time) or 540% upside if monetized. Initially, the setup was attractive due to the downside protection provided by the discount to net cash with the activist campaign's success providing a chance for an outsized return. Recent events The day I uploaded the article, rumors came out that AstraZeneca was eyeing a potential acquisition of MREO for $5/share. On the announcement, the stock shot up by 62%, quickly eliminating whatever was left of the discount to net cash reaching a $1.6/share price at the peak. Despite the initial excitement due to lack of updates the shares gradually declined to $1.3/share, still staying well-above net cash levels, up until the emergence of the latest news. Last month Rubric Capital, frustrated with the lack of engagement from the management, sent out a letter to the board calling for a special meeting and nominating a slate of 4 nominees to the board aiming to replace 4 out of 10 incumbent directors including the Chairman as well as the deputy Chairman. The management did not take the request lightly, questioning the experience and fit of the activist nominees in their response letter. Plus the board has identified multiple deficiencies (see below) in the filling procedure for the special shareholder meeting, leaving the feeling that it was done just to drag the process along. The response was not well received by the shareholders. Right after the release of the response letter, MREO shares tumbled by 25% to below $1/share. List of deficiencies identified by the board: Deficiency 1: Rubric owns ADSs, not Ordinary Shares Deficiency 2: The requisition doesn't come from two "members" Deficiency 3: The requisition is in the short-form format and needs to be in the long-form Deficiency 4: Our letter within the requisition exceeds the 1,000-word count limit (by 86 words) Finally, on the 14th of September, the activist released another public letter stating that they have addressed the identified deficiencies and submitted a new request. Unless the management comes up with some other excuse, the special shareholder meeting will likely be convened no later than 21 days after the submission of the request. If the special meeting will be allowed, Rubric has a good chance to win the vote. Further thoughts and valuation First, let's present the activist's model: Activist Letter The most notable asset of the company is Setrusumab, a drug used for the treatment of Osteogenesis imperfecta a rare genetic disease. The integral part of the MREO story is its partnership with Ultragenyx since 2020. The partnership significantly boosted MREO's financial health in the coming years due to a $50 million upfront payment from Ultragenyx. Most importantly, MREO is entitled to significant payments if certain milestones are achieved with further royalty payouts post-FDA approval. These two components make up most of the activist valuation plus the cash on hand (lower by $24m today). Setrusumab will go into Phase 3 trial by the end of the year, which would likely be one of the milestones triggering another payment (the exact details are limited). Moreover, the valuation does not include 5 other earlier-stage drugs that can also yield additional value here. Clearly, despite the contingencies, the potential upside is significant here. Once again, Rubric plans to monetize the potential royalties from Setrusumab, liquidate or license/partner out the rest of the pipeline, reduce the cash burn, and distribute excess cash to shareholders. The success of the campaign will be the catalyst for potentially outsized returns if the assets are monetized at least at a directionally close price to the activist valuation estimates. However, the main questions are whether the activist can succeed in overthrowing the board and if there are any buyers out there for MREO assets. If the shareholder meeting is convened, I believe, the activist has a good chance of succeeding here, for several reasons. Besides its large 14% stake, a close affiliate of Rubric Capital, Point72 Asset Management, also holds a 9% stake in the company and it is highly likely that their vote is in the pocket of the activist. In fact, Rubric Capital was a part of Point72 before it was carved out in 2016. Point72 capital is a hedge fund run by the infamous Steve Cohen whose former analyst was David Rosen, the current CEO of Rubric Capital. Moreover, to request a special shareholder meeting holders of ADS have to convert their ADS into ordinary shares with a $0.05/share conversion fee. Despite this, the activist was willing to incur, basically, a 10% tax just to request the shareholder meeting which speaks highly of their determination and most importantly confidence that the vote will go in their favor. On top of this, shareholder reaction to the management's response clearly shows dissatisfaction with the current management further increasing the likelihood of a successful activist campaign.
Seeking Alpha • Sep 14

Mereo activist investor Rubric asks board again to hold general meeting, nominate directors

Rubric Capital Management submitted a revised requisition to Mereo BioPharma's (NASDAQ:MREO) board for a general meeting of shareholders. Rubric — which claims to own ~14% stake in Mereo — issued an open letter on Sept. 14 criticizing the company and urged Mereo to hold a general meeting and allow shareholders to vote on Rubric's proposals, including the nomination of new board members. On Aug. 22, Mereo had cited certain deficiencies in Rubric's original requisition seeking the general meeting. A few days prior to this, in an Aug. 19 letter, Rubric had asked to hold a general meeting to consider the removal of directors Peter Fellner, Anders Ekblom, Deepika Pakianathan, and Michael Wyzga and to appoint Annalisa Jenkins, Daniel Shames, Marc Yoskowitz, and Justin Roberts as directors. In the Sept. 14 open letter Rubric disclosed the deficiencies cited by Mereo and its response.
Seeking Alpha • Jul 05

Mereo BioPharma Group regains compliance with Nasdaq's listing rule

Mereo BioPharma Group (NASDAQ:MREO) stated Tuesday that it has regained compliance with Nasdaq's minimum $1 bid price requirement as notified by the exchange. Stock is up 2.9% in after-hours trading. Earlier: AstraZeneca considering bid for Mereo BioPharma – Report (update)
Seeking Alpha • Jun 17

Mereo BioPharma: Activist Pressure In A Net-Net Biopharma

Mereo BioPharma Group plc is a London-based clinical-stage biopharma trading at a slight discount to net cash. Recently, one of the company’s largest investors, Rubric Capital Management (14% stake), wrote a letter to the board urging them to explore strategic alternatives. Rubric Capital is estimating that the implied value of MREO today is $4 per ADS.
Seeking Alpha • Dec 08

Mereo BioPharma: Anti-TIGIT Developer In Mid-Stage Development

MREO is a British company developing a new kind of monoclonal antibody for cancer. The company's self-owned pipeline is in the early stage. They recently announced interim data from a phase 1b trial.

Shareholder Returns

MREOUS BiotechsUS Market
7D16.9%3.1%1.2%
1Y-87.2%34.6%28.7%

Return vs Industry: MREO underperformed the US Biotechs industry which returned 34.6% over the past year.

Return vs Market: MREO underperformed the US Market which returned 28.7% over the past year.

Price Volatility

Is MREO's price volatile compared to industry and market?
MREO volatility
MREO Average Weekly Movement10.4%
Biotechs Industry Average Movement10.8%
Market Average Movement7.2%
10% most volatile stocks in US Market16.4%
10% least volatile stocks in US Market3.1%

Stable Share Price: MREO has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: MREO's weekly volatility has decreased from 19% to 10% over the past year.

About the Company

FoundedEmployeesCEOWebsite
201539Denise Scots-Knightwww.mereobiopharma.com

Mereo BioPharma Group plc, a biopharmaceutical company, develops and commercializes therapeutics for the treatment of rare diseases in the United Kingdom and the United States. The company develops Setrusumab, an antibody for the treatment of osteogenesis imperfecta; Alvelestat, an oral small molecule that is in Phase II clinical trial to treat Alpha-1 anti-trypsin deficiency associated lung disease; and Vantictumab, an anti-FZD monoclonal antibody for the treatment of autosomal dominant osteopetrosis type 2. It also develops Leflutrozole, an oral aromatase inhibitor, which is in Phase 2 trials for use in the treatment of hypogonadotropic hypogonadism; Navicixizumab, which has completed Phase 1b clinical trials for the treatment of the late line ovarian cancer; Etigilimab, an IgG1 monoclonal antibody which binds to the human TIGIT receptor on immune cells for the Treatment of advanced solid tumors; and Acumapimod, a p38 MAP kinase inhibitor that is in Phase II clinical trials to treat acute exacerbations of chronic obstructive pulmonary disease.

Mereo BioPharma Group plc Fundamentals Summary

How do Mereo BioPharma Group's earnings and revenue compare to its market cap?
MREO fundamental statistics
Market capUS$44.42m
Earnings (TTM)-US$35.71m
Revenue (TTM)US$500.00k
88.8x
P/S Ratio
-1.2x
P/E Ratio

Is MREO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
MREO income statement (TTM)
RevenueUS$500.00k
Cost of RevenueUS$133.00k
Gross ProfitUS$367.00k
Other ExpensesUS$36.08m
Earnings-US$35.71m

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

n/a

Earnings per share (EPS)-0.22
Gross Margin73.40%
Net Profit Margin-7,142.00%
Debt/Equity Ratio0%

How did MREO perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/26 12:38
End of Day Share Price 2026/05/22 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Mereo BioPharma Group plc is covered by 11 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jack AllenBaird
Yun ZhongBTIG
Julian HarrisonBTIG