Mereo BioPharma downgraded to Hold from Buy at Jefferies

Jefferies downgraded Mereo BioPharma (MREO) to Hold from Buy with a price target of 50c, down from $7. Setrusumab missed on its primary endpoint in both the ORBIT and COSMIC trials, sending shares of Mereo and Ultragenyx (RARE) down sharply, the analyst tells investors in a research note. The firm thinks Ultragenyx can rebound in 2026 as investors position for their Phase III Angelman readout, though the go-forward strategy for Mereo is riskier with the pipeline dependency remaining on a potential EUE path and need for alvelestat partnership.