Mereo BioPharma initiated with a Buy at Jefferies

Jefferies analyst Maury Raycroft initiated coverage of Mereo BioPharma (MREO) with a Buy rating and $7 price target The company’s lead asset setrusumab is in Phase III for osteogenesis imperfecta, the analyst tells investors in a research note. The firm believes the second interim study will succeed and says the first interim “has a chance too.” With this near-term success, a launch with no near-term competition and “healthy royalties,” Jefferies sees shares upside.