Mereo BioPharma postpones proposed Nasdaq listing

AIM-quoted innovative therapeutics developer Mereo BioPharma has withdrawn its global offering and postponed the proposed listing of its shares on the Nasdaq Global Market.

Mereo stated that current market conditions were "not conducive" for an offering on terms that would be in its shareholders best interests, leading it to halt the listing of its American Depositary Shares.

The AIM-quoted multi-asset biopharmaceutical company told investors on Thursday that it remained "well funded", with a net cash, short-term deposits and short-term investment balance of £52.5m as 31 December, providing it with a "strong cash runway" to deliver upon its next key clinical programme milestones.

Dr Denise Scots-Knight, Mereo's chief executive, said, "We received positive feedback and strong levels of institutional interest during the offering process. However, challenging stock market conditions have led our board to take the decision to withdraw our global offering and postpone our proposed listing of ADSs on Nasdaq in the interests of our existing shareholders."

In other news, development of Mereo's clinical assets remained "on track", posting positive top-line data from its completed phase two dose-ranging clinical trial for BCT-197 for the treatment of acute exacerbations of chronic obstructive pulmonary disease and from its phase 2b dose-ranging clinical trial for BGS-649, a once a week oral treatment for hypogonadotropic hypogonadism in obese men.

"We are making good progress in the clinic and have reported positive data from both our BCT-197 and BGS-649 clinical programmes over the last few months. Subsequently, we are also progressing BCT-197 partnering discussions," Scots-Knight added.

As of 1130 BST, shares had climbed 3.61% to 344p.