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Mereo Biopharma Group Plc
(NASDAQ:MREO)
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Rating:46Neutral
Price Target:
$0.30
▼(-10.59% Downside)
Action:Reiterated
Date:05/28/26
The score is primarily held down by weak financial performance—large losses, minimal revenue, and continued cash burn—despite a low-debt balance sheet. Technicals show only modest near-term improvement with the longer-term trend still weak, and valuation remains constrained by negative earnings and no dividend support. Corporate actions add financing flexibility but also underscore potential dilution risk.
Positive Factors
Low leverage / clean balance sheet
Zero reported debt provides durable financial flexibility for a clinical-stage biotech. With no interest burden, the company can prioritize R&D and partnerships, lowering bankruptcy risk and making equity or partnership funding more effective to sustain long-term clinical programs.
Negative Factors
Persistent cash burn
Sustained negative operating and free cash flows deplete cash reserves and shorten runway, forcing frequent external financing or partnership monetization. This structural cash burn increases execution risk for multi-year development programs and constrains resource allocation to priority assets.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / clean balance sheet
Zero reported debt provides durable financial flexibility for a clinical-stage biotech. With no interest burden, the company can prioritize R&D and partnerships, lowering bankruptcy risk and making equity or partnership funding more effective to sustain long-term clinical programs.
Read all positive factors
Mereo Biopharma Group Plc (MREO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.50M
Dividend YieldN/A
Average Volume (3M)1.59M
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue GrowthN/A
EPS Growth28.17%
CountryUS
Employees39
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.22
Shares Outstanding159,618,600
10 Day Avg. Volume975,180
30 Day Avg. Volume1,586,007
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)1.62
Price to Sales (P/S)132.86
P/FCF Ratio-2.14
Enterprise Value/Market Cap0.27
Enterprise Value/Revenue26.52
Enterprise Value/Gross Profit212.10
Enterprise Value/Ebitda-0.34
Forecast
1Y Price Target
$3.00Price Target Upside782.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.01
Revenue Forecast (FY)$14.28M
Mereo Biopharma Group Plc Business Overview & Revenue Model
Company Description
Mereo BioPharma Group plc, a London-based biopharmaceutical firm established in 2015, specializes in developing and commercializing innovative therapies for oncology and rare conditions. Operating both in the United Kingdom and internationally, th...
How the Company Makes Money
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Mereo Biopharma Group Plc Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 500.00K | 500.00K | 0.00 | 10.00M | 0.00 | 49.21M |
| Gross Profit | 62.51K | 367.00K | 0.00 | 7.43M | 257.44K | 25.04M |
| EBITDA | -39.29M | -40.47M | -40.80M | -26.06M | -39.98M | 25.49M |
| Net Income | -35.70M | -41.88M | -43.25M | -29.47M | -42.12M | 17.17M |
Balance Sheet | ||||||
| Total Assets | 40.61M | 45.92M | 76.39M | 66.50M | 77.41M | 170.96M |
| Cash, Cash Equivalents and Short-Term Investments | 36.22M | 40.99M | 69.80M | 57.42M | 68.18M | 127.52M |
| Total Debt | 0.00 | 202.00K | 6.43M | 5.95M | 15.37M | 22.66M |
| Total Liabilities | 6.56M | 5.00M | 15.42M | 15.96M | 26.01M | 51.95M |
| Stockholders Equity | 34.05M | 40.92M | 60.97M | 50.54M | 51.40M | 119.01M |
Cash Flow | ||||||
| Free Cash Flow | -26.96M | -30.99M | -33.53M | -21.55M | -48.83M | -7.79M |
| Operating Cash Flow | -26.95M | -30.97M | -32.83M | -21.13M | -48.82M | -7.07M |
| Investing Cash Flow | -1.52K | -20.00K | -699.00K | -419.00K | 1.99M | -568.20K |
| Financing Cash Flow | -95.27K | 327.00K | 46.15M | 7.97M | 200.00K | 104.80M |
Mereo Biopharma Group Plc Technical Analysis
Negative
0.34
Price Trends
0.30
Positive
0.32
Negative
0.86
Negative
Market Momentum
<0.01
Positive
48.07
Neutral
44.06
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 above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.30, and below the 200-day MA of 0.86, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.07 is Neutral, neither overbought nor oversold. The STOCH value of 44.06 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 Risk Analysis
Mereo Biopharma Group Plc disclosed 73 risk factors in its most recent earnings report. Mereo Biopharma Group Plc reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mereo Biopharma Group Plc Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $398.97M | 5.45 | 41.40% | ― | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $701.32M | 7.45 | -54.39% | ― | ― | ― | |
48 Neutral | $1.13B | -8.38 | -59.27% | ― | -100.00% | -62.96% | |
47 Neutral | $327.14M | -1.34 | -61.41% | ― | 8.16% | -434.76% | |
46 Neutral | $49.50M | ― | -81.25% | ― | ― | 28.17% |
* Healthcare Sector Average
MREO
Mereo Biopharma Group Plc
0.31
-1.40
-81.87%
OMER
Omeros
9.69
6.05
166.21%
VNDA
Vanda
5.44
0.78
16.74%
CAPR
Capricor Therapeutics
19.44
13.17
210.05%
ABEO
Abeona Therapeutics
7.00
0.25
3.70%
Mereo Biopharma Group Plc Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Mereo BioPharma Shareholders Approve All AGM Resolutions
Positive
May 14, 2026
On May 14, 2026, Mereo BioPharma Group plc held its 2026 Annual General Meeting, at which all proposed resolutions were passed, with 436,766,255 ordinary shares represented in person or by proxy. Shareholders adopted the 2025 annual report and acc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.