Mereo Biopharma Group Plc (MREO)
NASDAQ:MREO
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Mereo Biopharma Group Plc
(NASDAQ:MREO)
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Rating:41Neutral
Price Target:
$0.25
▼(-27.35% Downside)
Action:Reiterated
Date:05/14/26
The score is primarily weighed down by weak financial performance (large losses and ongoing cash burn) and bearish technicals (price below key moving averages with negative MACD). Valuation is difficult to assess meaningfully given negative earnings, and corporate events add risk via Nasdaq bid-price noncompliance and potential dilution from renewed share-issuance authority.
Positive Factors
Low Leverage / Balance Sheet Strength
The company’s zero total debt position provides durable financial flexibility for a clinical‑stage biotech. Low leverage reduces bankruptcy and interest burden risk, allowing management to fund R&D and pursue partnerships without near‑term debt servicing constraints.
Negative Factors
Sustained Cash Burn
Persistent operating cash outflows (~$27M TTM) indicate the company consumes material cash to fund development. Over months this requires repeated financing or partnerships; inability to secure funds risks slowing trials, delaying milestones, and increasing dilution for shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Balance Sheet Strength
The company’s zero total debt position provides durable financial flexibility for a clinical‑stage biotech. Low leverage reduces bankruptcy and interest burden risk, allowing management to fund R&D and pursue partnerships without near‑term debt servicing constraints.
Read all positive factors
Mereo Biopharma Group Plc (MREO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.55M
Dividend YieldN/A
Average Volume (3M)1.50M
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue GrowthN/A
EPS Growth28.17%
CountryUS
Employees36
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)N/A
Shares Outstanding159,618,600
10 Day Avg. Volume1,831,691
30 Day Avg. Volume1,496,844
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 Cap0.06
Enterprise Value/Revenue4.65
Enterprise Value/Gross Profit37.18
Enterprise Value/Ebitda-0.06
Forecast
1Y Price Target
$2.33Price Target Upside586.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 ant...
How the Company Makes Money
Mereo Biopharma primarily generates revenue through collaboration and licensing arrangements related to its drug development pipeline. These arrangements can include upfront payments, development and regulatory milestone payments, commercial miles...
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
Neutral
0.34
Price Trends
0.37
Negative
0.80
Negative
1.34
Negative
Market Momentum
-0.02
Negative
45.61
Neutral
65.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MREO, the sentiment is Neutral. The current price of 0.34 is above the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.37, and below the 200-day MA of 1.34, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 65.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
57 Neutral | $886.60M | 3.39 | 1.71% | ― | ― | ― | |
57 Neutral | $312.90M | -3.71 | 53.18% | ― | ― | ― | |
55 Neutral | $1.67B | -12.86 | -67.52% | ― | -100.00% | -62.96% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $377.65M | -2.11 | -61.41% | ― | 8.16% | -434.76% | |
41 Neutral | $38.55M | -1.97 | -83.02% | ― | ― | 28.17% |
* Healthcare Sector Average
MREO
Mereo Biopharma Group Plc
0.24
-2.00
-89.24%
OMER
Omeros
12.25
9.04
281.03%
VNDA
Vanda
6.28
2.12
50.96%
CAPR
Capricor Therapeutics
28.79
19.35
204.98%
ABEO
Abeona Therapeutics
5.49
-0.61
-10.00%
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...
Executive/Board ChangesShareholder Meetings
Mereo Biopharma Announces Upcoming Board Change, Ensuring Continuity
Neutral
Mar 27, 2026
On March 26, 2026, Mereo BioPharma Group plc disclosed that board member Dr. Annalisa Jenkins has decided not to stand for re-election at the company’s annual general meeting scheduled for May 14, 2026, and will serve out her term until imme...
Delistings and Listing ChangesRegulatory Filings and Compliance
Mereo BioPharma Receives Nasdaq Minimum Bid Price Notice
Negative
Feb 17, 2026
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 Nasda...
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.