Mereo BioPharma price target raised to $8 from $6 at Leerink

Leerink analyst Joseph Schwartz raised the firm’s price target on Mereo BioPharma (MREO) to $8 from $6 and keeps an Outperform rating on the shares. Following the recent disclosure of longer-term data from the Phase 2 portion of the ORBIT study with setrusumab in OI, the firm is refreshing its revenue model and increasing its peak sales estimates to about $1.2B. Overall, Leerink remains positive on both Ultragenyx (RARE) and Mereo ahead of the pivotal data, potentially by year-end.

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