Mereo Biopharma Group Plc (MREO) AI Stock Analysis

• Market Cap: $54.52M
• Dividend Yield: N/A
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 36
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.01
• Shares Outstanding: 159,615,770
• 10 Day Avg. Volume: 1,346,219
• 30 Day Avg. Volume: 2,048,744
• PEG Ratio: 0.14
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 132.86
• P/FCF Ratio: -2.14
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 27.82
• Enterprise Value/Gross Profit: 38.01
• Enterprise Value/Ebitda: -0.35
• 1Y Price Target: $1.75
• Price Target Upside: 414.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -0.02
• Revenue Forecast (FY): $25.10M

• Rating: 42 Neutral
• Price Target: $0.34 ▼(-0.88% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven down by persistent large losses and cash burn (despite low debt), a clear bearish technical downtrend, and negative corporate events (Nasdaq bid-price notice and Phase 3 endpoint misses). The balance sheet’s low leverage provides some support but is outweighed by weak fundamentals and elevated risk.

Positive Factors

Low leverage / healthy balance sheet

Minimal reported debt versus equity and assets exceeding liabilities provide structural financial flexibility. This durable strength reduces near‑term insolvency risk, supports continued R&D and partnering options, and preserves strategic choices while clinical programs mature.

Established partnering and out‑licensing activity

Active collaborations and out‑licenses shift development and commercialization costs to partners and leverage external capabilities. Structurally this diversification of funding and expertise lowers outright program risk and increases chances of late‑stage advancement without full company funding.

Positive Phase 3 biological activity and safety

Robust bone‑density gains and acceptable tolerability indicate clear biological activity and a defensible safety profile. Over the medium term this durability supports regulatory engagement, targeted label strategies, or subgroup approvals even if primary endpoints were missed.

Negative Factors

Persistent cash burn and negative cash flow

Sustained negative operating and free cash flow signal structural reliance on external financing or partnering to fund operations and late‑stage trials. This constrains strategic autonomy, raises dilution risk, and makes long‑term program funding contingent on successful deals or capital raises.

Phase 3 primary endpoint failures for core asset

Missing primary fracture endpoints undermines the pivotal evidence package for the lead candidate, increasing the likelihood of additional trials, regulatory delay, or narrower indications. This weakens commercial prospects and reduces negotiating leverage with partners or acquirers.

Nasdaq minimum bid price non‑compliance

Failure to meet listing standards creates structural market‑access risk: potential delisting would reduce U.S. investor access, liquidity and visibility, making future capital raises harder and possibly deterring strategic partners over the medium term.

Mereo Biopharma Group Plc Business Overview & Revenue Model

Company Description

Mereo BioPharma Group plc, a biopharmaceutical company, develops and commercializes therapeutics for the treatment of oncology and rare diseases in the United Kingdom and internationally. Its lead product candidate, etigilimab (OMP-313M32), an antibody T-cell immunoreceptor with Ig and ITIM domains, which is in Phase 1b clinical trial for the treatment of tumor. The company is also developing Navicixizumab (OMP-305B83), which has completed Phase 1b clinical trials for the treatment of the late line ovarian cancer; Acumapimod (BCT-197), a p38 MAP kinase inhibitor that is in Phase II clinical trials to treat acute exacerbations of chronic obstructive pulmonary disease; and Leflutrozole (BGS-649), an oral aromatase inhibitor for the treatment of hypogonadotropic hypogonadism. In addition, it develops rare disease product candidates, including Setrusumab (BPS-804), a novel antibody for the treatment of osteogenesis imperfecta; and Alvelestat (MPH-966), an oral small molecule that is in Phase II clinical trial to treat Alpha-1 antitrypsin deficiency. The company has a collaboration with The University of Texas MD Anderson Cancer Center to evaluate anti-TIGIT therapeutic antibody candidate, etigilimab. Mereo BioPharma Group plc was incorporated in 2015 and is based in London, the United Kingdom.

How the Company Makes Money

Mereo Biopharma primarily seeks to generate returns by developing drug candidates and monetizing them through partnering transactions and, if any products are approved, eventual product commercialization. Key revenue sources may include: (1) collaboration and license income—upfront payments, development and regulatory milestone payments, and sales-based royalties earned when partnered assets are progressed and/or commercialized by a partner; (2) cost reimbursements or funded research/development payments under certain collaboration structures (when applicable); and (3) product revenue if Mereo obtains marketing approval and commercializes a therapy itself or via a profit-share arrangement (if applicable). null

Mereo Biopharma Group Plc Financial Statement Overview

Summary

Financials are weak overall: very low TTM revenue (~$0.5M), large net loss (~-$41.9M), and heavy ongoing cash burn (TTM operating cash flow ~-$31.0M; free cash flow ~-$31.3M). The main offset is a relatively strong balance sheet with minimal debt (~$0.2M) versus equity (~$40.9M), reducing near-term leverage risk but not solving funding needs.

Income Statement

TTM (Trailing-Twelve-Months) results show very weak profitability: revenue is only ~$0.5M with a large net loss (~-$41.9M) and deeply negative operating margins. The revenue base has been volatile (including years with minimal or no revenue), and the company has not shown sustained top-line growth. A key strength is that losses have narrowed materially versus the extreme 2020 loss year, but the business remains far from break-even.

Balance Sheet

The balance sheet is a relative bright spot: TTM (Trailing-Twelve-Months) debt is minimal (~$0.2M) versus equity (~$40.9M), implying low leverage and financial flexibility. Assets (~$45.9M) still exceed liabilities by a healthy margin. The main weakness is persistent negative returns for shareholders driven by ongoing losses (TTM return on equity is meaningfully negative), and equity has declined substantially from earlier periods, reflecting cumulative burn.

Cash Flow

Cash generation remains a major headwind: TTM (Trailing-Twelve-Months) operating cash flow is deeply negative (~-$31.0M) and free cash flow is also negative (~-$31.3M), indicating continued cash burn to fund operations. Free cash flow deterioration versus the prior year adds pressure. While cash outflow is smaller than the worst historical years, the company still appears reliant on external financing until losses and burn rate improve.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	500.00K	0.00	10.00M	0.00	49.21M
Gross Profit	367.00K	0.00	7.43M	257.44K	25.04M
EBITDA	-39.35M	-40.80M	-26.06M	-39.98M	25.49M
Net Income	-41.88M	-43.25M	-29.47M	-42.12M	17.17M
Balance Sheet
Total Assets	45.92M	76.39M	66.50M	77.41M	170.96M
Cash, Cash Equivalents and Short-Term Investments	40.99M	69.80M	57.42M	68.18M	127.52M
Total Debt	202.00K	6.43M	5.95M	15.37M	22.66M
Total Liabilities	5.00M	15.42M	15.96M	26.01M	51.95M
Stockholders Equity	40.92M	60.97M	50.54M	51.40M	119.01M
Cash Flow
Free Cash Flow	-30.99M	-33.53M	-21.55M	-48.83M	-7.79M
Operating Cash Flow	-30.97M	-32.83M	-21.13M	-48.82M	-7.07M
Investing Cash Flow	-20.00K	-699.00K	-419.00K	1.99M	-568.20K
Financing Cash Flow	327.00K	46.15M	7.97M	200.00K	104.80M

Mereo Biopharma Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MREO, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.44, and below the 200-day MA of 1.55, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 32.63 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MREO.

Mereo Biopharma Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAPR	61 Neutral	$1.73B	-12.77	-67.52%	―	-52.08%	-69.35%
VNDA	56 Neutral	$413.76M	-2.36	-49.24%	―	11.12%	-406.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OMER	50 Neutral	$755.80M	-2.20	57.33%	―	―	12.32%
ABEO	47 Neutral	$252.16M	3.92	53.18%	―	―	―
MREO	42 Neutral	$54.52M	-1.59	-83.02%	―	―	―

Mereo Biopharma Group Plc Corporate Events

Mereo BioPharma Receives Nasdaq Minimum Bid Price Notice

On February 17, 2026, Mereo BioPharma received notice from Nasdaq that its American Depositary Shares had failed to maintain the required minimum bid price of $1.00 for 30 consecutive business days, placing the company out of compliance with Nasdaq’s listing standards. The ADSs will continue to trade under the MREO ticker while the company has until August 17, 2026, to regain compliance, with the possibility of an additional 180-day grace period or, failing that, a potential delisting process that could include an appeal, although business operations are currently unaffected by the notice.

The company must achieve a closing bid price of at least $1.00 for a minimum of 10 consecutive business days within the compliance window for Nasdaq to deem it back in good standing. If it cannot meet the bid price threshold or other relevant listing criteria, Mereo could face delisting from the Nasdaq Capital Market, a development that would affect its market visibility and access to U.S. investors, even though its operations are said to remain unchanged for now.

The most recent analyst rating on (MREO) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Mereo Biopharma Group Plc stock, see the MREO Stock Forecast page.

Mereo BioPharma Issues Corporate Update on Pipeline and Cash

On January 12, 2026, Mereo BioPharma provided a corporate update detailing the status of its rare disease pipeline and financial position. Following Phase 3 Orbit and Cosmic trials in osteogenesis imperfecta that failed to meet primary fracture-reduction endpoints but showed strong gains in bone mineral density and a consistent safety profile, the company has reduced and delayed pre-commercial and manufacturing activities for setrusumab while conducting further data analyses and considering regulatory interactions with partner Ultragenyx. In parallel, Mereo is pushing ahead with partnering talks and key preparations for a single global Phase 3 trial of alvelestat in alpha-1 antitrypsin deficiency-associated lung disease, and highlighted progress on vantictumab, which has been out-licensed to āshibio for autosomal dominant osteopetrosis type 2 with a Phase 2 study planned for the second half of 2026. The company reported approximately $41 million in cash and cash equivalents as of December 31, 2025, and updated its guidance to indicate this balance is expected to fund operations through mid-2027, underscoring tighter cost controls and providing greater visibility for investors as Mereo navigates mixed clinical outcomes and seeks partners to share late-stage development and commercialization risk.

The most recent analyst rating on (MREO) stock is a Hold with a $0.37 price target. To see the full list of analyst forecasts on Mereo Biopharma Group Plc stock, see the MREO Stock Forecast page.

Mereo Biopharma Updates Setrusumab Trials and Cost Controls

On December 29, 2025, Mereo BioPharma reported that its Phase 3 ORBIT and COSMIC trials of setrusumab (UX143) in pediatric and young adult patients with osteogenesis imperfecta did not meet their primary endpoints of statistically significant reduction in annualized clinical fracture rates versus placebo and bisphosphonates, respectively, although both studies showed strongly significant improvements in bone mineral density and no change in the safety profile. The company said it is conducting further analyses of the data, particularly in the higher-risk pediatric population where bone density gains were associated with a non-significant reduction in fractures, and in response to the outcome it is tightening cost controls, immediately reducing pre-commercial and manufacturing activities for setrusumab, and continuing efforts to extract value from its broader rare-disease portfolio, including ongoing partnering discussions for alvelestat.

The most recent analyst rating on (MREO) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Mereo Biopharma Group Plc stock, see the MREO Stock Forecast page.