Analyst Gil Blum from Needham maintained a Buy rating on Mereo Biopharma Group Plc and keeping the price target at $5.00.
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Gil Blum has given his Buy rating due to a combination of factors that suggest a positive outlook for Mereo Biopharma Group Plc. One of the key reasons is the continuation of the Phase III Orbit study, which, despite missing its second interim target, is expected to yield positive results by the end of 2025. This expectation is supported by the study’s significantly higher statistical power and the established link between increased bone mineral density and reduced fractures when using an anti-sclerostin.
Additionally, Mereo’s financial position appears robust, with the company ending the second quarter of 2025 with $56 million, which is projected to sustain operations until 2027. Furthermore, the anticipated results from the pediatric Cosmic study later this year are expected to complement the Orbit study findings, potentially enhancing the company’s value proposition. These factors collectively underpin the Buy rating and the price target of $5.
Blum covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Crispr Therapeutics AG, and Mereo Biopharma Group Plc. According to TipRanks, Blum has an average return of -3.1% and a 36.94% success rate on recommended stocks.