Mereo BioPharma initiated with an Outperform at Baird

Baird initiated coverage of Mereo BioPharma with an Outperform rating and $8 price target. Mereo has built a “compelling rare disease portfolio,” including two lead assets, setrusumab and alvelestat, the analyst tells investors. The firm views each individually having a “compelling case in a rare disease with high unmet need” and anticipates enthusiasm surrounding the opportunity for setrusumab will build ahead of pivotal data in potentially late-24 to early-25, while an alvelestat partnership announcement “could represent an upside surprise catalyst,” the analyst added.