In a report released yesterday, Julian Harrison from BTIG maintained a Buy rating on Mereo Biopharma Group Plc (MREO – Research Report), with a price target of $6.00.
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Julian Harrison has given his Buy rating due to a combination of factors that highlight the potential success and economic benefits of Mereo Biopharma Group Plc’s developments. The ongoing Phase 3 ORBIT trial of setrusumab in osteogenesis imperfecta (OI) is anticipated to yield positive results by mid-2025, with a high probability of success based on previous Phase 2b data. The differentiated safety profile and efficacy of setrusumab, along with its potential market exclusivity in the US and Europe, contribute to its promising outlook.
Moreover, Mereo Biopharma retains significant economic interests in setrusumab, including tiered royalties and milestone payments, which could result in substantial financial gains if the drug succeeds. The management’s proactive approach in pre-commercial activities and trial preparations further supports the company’s strategic positioning. Additionally, the low competition risk for setrusumab in OI, due to limited plans from competitors, enhances its market potential. These factors collectively underpin Harrison’s optimistic Buy rating for Mereo Biopharma Group Plc.
In another report released yesterday, Needham also maintained a Buy rating on the stock with a $7.00 price target.
MREO’s price has also changed dramatically for the past six months – from $4.050 to $2.320, which is a -42.72% drop .