Needham analyst Gil Blum lowered the firm’s price target on Mereo BioPharma (MREO) to $5 from $7 but keeps a Buy rating on the shares. The company announced that the Phase 3 Orbit study will continue towards a final analysis expected in Q4 after missing on its second interim, and this outcome represents the firm’s downside scenario, though Needham’s overall view on setrusumab’s ultimate likelihood of success remains unchanged, given that about 80% alpha spend is reserved for the final analysis, the analyst tells investors in a research note.
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