Mereo Biopharma Group Plc, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Julian Harrison from BTIG maintained a Buy rating on the stock and has a $6.00 price target.
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Julian Harrison’s rating is based on the promising outlook for Mereo Biopharma Group Plc’s Phase 3 Orbit trial, which is advancing to its final analysis. Despite the interim analysis not meeting the predefined threshold for disclosure, the extended follow-up period and increased statistical significance criteria suggest a high probability of positive results. The potential market for setrusumab is substantial, addressing a significant unmet need in osteogenesis imperfecta with a large target patient population in the US and Europe.
Furthermore, Mereo Biopharma holds valuable rights, including double-digit royalties on US net sales and significant milestones from Ultragenyx. The safety profile of setrusumab has been deemed acceptable, reinforcing its potential as a safe and effective treatment. These factors contribute to the expectation that the net present value of Mereo’s rights to setrusumab could exceed $1 billion, making the current stock weakness an attractive entry point for investors.
In another report released today, Needham also maintained a Buy rating on the stock with a $5.00 price target.