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Optimistic Buy Rating for Mereo Biopharma Group Plc Driven by Setrusumab’s Potential and Market Opportunities

Optimistic Buy Rating for Mereo Biopharma Group Plc Driven by Setrusumab’s Potential and Market Opportunities

LifeSci Capital analyst Cory Jubinville, PhD maintained a Buy rating on Mereo Biopharma Group Plc (MREOResearch Report) today and set a price target of $10.00.

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Cory Jubinville, PhD has given his Buy rating due to a combination of factors surrounding Mereo Biopharma Group Plc’s lead asset, setrusumab. The upcoming second interim analysis for the Phase 3 Orbit study in osteogenesis imperfecta (OI) is a significant milestone, and there is optimism about setrusumab’s potential to succeed in either this analysis or the final one. The study’s design, which includes a larger proportion of higher-risk Type 3 and 4 patients, suggests that the baseline annualized fracture rate (AFR) should be higher than in previous studies, potentially improving the probability of success (PoS) for setrusumab.
Furthermore, the thorough data cleaning process executed by a third party enhances the credibility of the results, which could expedite regulatory filings if the interim analysis is positive. Mereo’s position as a late-stage company with differentiated product profiles in both setrusumab and alvelestat, combined with a substantial market opportunity exceeding $1 billion, further supports the Buy rating. These factors collectively contribute to the positive outlook for Mereo Biopharma Group Plc’s stock.

Jubinville, PhD covers the Healthcare sector, focusing on stocks such as Liquidia Technologies, Mereo Biopharma Group Plc, and Rocket Pharmaceuticals. According to TipRanks, Jubinville, PhD has an average return of -7.0% and a 41.38% success rate on recommended stocks.

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