UK's Mereo BioPharma misses 2025 revenue estimates, expects cash runway to mid-2027

Reuters03-19 20:46
UK's Mereo BioPharma misses 2025 revenue estimates, expects cash runway to mid-2027

Overview

  • UK rare disease drug developer's 2025 revenue missed analyst expectations

  • Full-year net loss narrowed, driven by lower R&D and administrative expenses

  • Company expects cash runway to mid-2027 after cost reductions and delayed manufacturing investments

Outlook

  • Company expects cash of $41.0 mln to provide runway into mid-2027

Result Drivers

  • R&D SPENDING SHIFT - Lower R&D expenses for alvelestat and etigilimab offset by higher costs for setrusumab manufacturing and real-world evidence programs

  • ADMIN COSTS DOWN - Lower accrual for annual cash bonuses and reduced professional fees drove decrease in administrative expenses

Company press release: ID:nGNXH3Sbj

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Revenue

Miss

$500,000

$520,000 (5 Analysts)

FY Net Income

-$41.88 mln

FY Operating Income

-$40.11 mln

FY Pretax Profit

-$41.88 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

  • Wall Street's median 12-month price target for Mereo BioPharma Group PLC is $1.50, about 326.5% above its March 18 closing price of $0.35

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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