MREO · Mereo BioPharma Group plc

Mereo BioPharma reported its first quarter 2026 financial results, highlighting a reduced net loss of $6.7 million compared to $12.9 million in the same period last year. The improvement was driven by a $3.3 million decrease in general and administrative expenses, partly due to a $1.9 million reimbursement from its ADR depository and delays in pre-commercial activities for setrusumab. Research and development expenses increased by $0.8 million to $4.7 million, primarily due to a $1.8 million increase for setrusumab related to manufacturing slot cancellation costs, partially offset by lower alvelestat spending. The company ended the quarter with $36.2 million in cash, which management expects to fund operations into mid-2027, excluding potential business development payments. On the pipeline front, setrusumab failed to meet primary endpoints in two Phase 3 OI studies but showed statistically significant improvements in bone mineral density and patient-reported outcomes. Mereo and partner Ultragenyx have initiated regulatory discussions to explore a path forward in pediatric patients. Alvelestat partnership discussions are ongoing, with a single Phase 3 trial design agreed upon with regulators. Vantictumab's Phase 2 trial in ADO2 is expected to start in H2 2026, funded by partner āshibio. The company also noted that its cash guidance does not include potential partnership payments.