Mereo BioPharma reports on solid progress

Clinical stage, UK-based, biopharmaceutical company focused on rare and specialty diseases, Mereo BioPharma Group updated the market on its three clinical development programmes in addition to a general corporate update on Monday.

The AIM-traded firm also announced that it intended to publish preliminary results for its financial year ending 31 December on 27 February.

It said the first potential pivotal study for BPS-804 (osteogenesis imperfecta) was expected to start in H1 2017.

Mereo was also on track to deliver data in H2 2017 from Phase 2 studies for acumapimod (AECOPD) and BGS-649 (hypogonadal hypogonadism).

The outcome of the interim blinded analysis of the BGS-649 study to potentially eliminate ineffective dose levels was expected Q1 2017, and the board said it strengthened the intellectual property protection across the portfolio.

Its balance sheet remained strong, with an unaudited cash balance of £57.9m as of 30 November.

Mereo was now evaluating additional opportunities to strengthen its rare and specialty disease portfolio.

“We continue to make substantial progress in the clinical development of our initial product portfolio following the formal launch of the company just under a year and a half ago,” said CEO Dr Denise Scots-Knight.

“We remain focused on delivering a number of significant value inflection points as we look forward to 2017.”

Dr Knight said that, in line with its stated strategy, and with all three acquired programmes in the clinic in 2017, the board was evaluating additional opportunities to strengthen its rare and specialty disease portfolio and remain in discussions with a number of large pharmaceutical and biotechnology companies.

“We believe our novel business model aligns our interests with the drug development needs of these organisations where significant internal prioritisation for strategic and capital allocation reasons limits their ability to fund their entire pipeline of research and development stage assets.

“We remain confident that we are well positioned to build a scalable and sustainable speciality pharmaceutical business that will bring forward important therapies in areas of high patient need and will generate significant shareholder value.”