{"success":true,"data":{"pressRelease":{"id":"115386","rtpr_id":"nGNX7ZdvVx","ticker":"MREO","exchange":"NASDAQ","all_tickers":["MREO","MAH0Y"],"title":"Mereo BioPharma Reports Second Quarter 2026 Financial Results and Provides Corporate Highlights","author":"Globe Newswire","published_at":"2026-08-11T12:15:52.214Z","article_body":"Entered into option and license agreement with Sentynl Therapeutics for\nalvelestat, Mereo’s investigational oral therapy for Alpha-1 Antitrypsin\nDeficiency-Associated Lung Disease (AATD-LD)\n\nMereo and partner Ultragenyx engaging with regulatory agencies on potential\npath forward for setrusumab in osteogenesis imperfecta (OI); further updates\nexpected by year-end 2026\n\nCash and cash equivalents of $30.1 million at June 30, 2026, now expected to\nfund operations into late-2027\n\nLONDON, Aug. 11, 2026 (GLOBE NEWSWIRE) -- Mereo BioPharma Group plc (NASDAQ:\nMREO) (“Mereo” or the “Company”), a clinical-stage biopharmaceutical\ncompany focused on rare diseases, today announced financial results for the\nsecond quarter ended June 30, 2026, and provided an update on recent\ncorporate highlights.\n\nThe Company is also updating its previous cash runway guidance. As of June 30,\n2026, cash and cash equivalents were approximately $30 million, which are\nexpected to fund operations into late-2027.\n\n“The partnership with Sentynl Therapeutics which we announced earlier today\nmarks a significant milestone for our alvelestat program and for the Company\nas a whole. We are now working together to refine the design of the global\nPhase 3 study for our potential first-in-class oral therapy for AATD-LD and\nlook forward to a continued close collaboration during the short option\nperiod. Assuming exercise of the license option by Sentynl, we plan to\ninitiate the Phase 3 trial in early 2027,” said Denise Scots-Knight, Chief\nExecutive Officer of Mereo BioPharma. “Additionally, alongside our partner\nUltragenyx, we have had initial regulatory interactions on setrusumab with the\nFDA and the MHRA and we expect to be in a position to provide an update on the\npotential path forward by the end of this year. We finished the quarter with\napproximately $30 million in cash. Thanks to our careful expense management,\nwe now expect that this cash will provide runway into late-2027, exclusive of\nthe potential $40 million in upfront and R&D payments that we are eligible to\nreceive on exercise of the alvelestat option by Sentynl.”\n\nSecond Quarter 2026 Highlights, Recent Developments, and Anticipated\nMilestones \n\nSetrusumab (UX143)\n* The Orbit and the Cosmic Phase 3 studies did not achieve statistical\nsignificance against the primary endpoints of reduction in annualized clinical\nfracture rate, however, both achieved high statistical significance against\nthe key secondary endpoint of improvement in bone mineral density, as well as\nreductions in vertebral fractures and improvements in patient reported\noutcomes (PROs) associated with disease severity, pain / discomfort and daily\nactivities, with these PRO improvements achieving statistical significance in\nthe Orbit study. Setrusumab also achieved meaningful reductions in fractures\nin certain bones and in patients with higher fracture frequencies. Both\nstudies demonstrated a safety profile consistent with that observed in\nprevious trials.\n* Mereo and its partner, Ultragenyx Pharmaceutical, Inc. (Ultragenyx), are\nengaged with regulatory agencies to determine a potential path forward for\nsetrusumab in pediatric OI patients and, to-date, have held discussions with\nthe regulators in the U.S. and the U.K. The FDA indicated openness to\nconsidering alternative approaches to fracture analysis, with additional\nconversations needed to further define what additional clinical data would be\nneeded to support a potential BLA. In recent communications with the MHRA,\nthey encouraged further dialogue on any future development proposal, and we\nplan to have further interactions following the FDA discussions.\nAlvelestat (MPH-966)\n* Mereo recently announced an option and license agreement with Sentynl\nTherapeutics, Inc. (Sentynl), a wholly owned subsidiary of Zydus Lifesciences\nLimited. Sentynl has the right to acquire a license for the U.S. commercial\nand global manufacturing rights to alvelestat for AATD-LD. * Sentynl is a\nCalifornia-based, commercial-stage biopharmaceutical company with three\ncurrently approved products for rare diseases.\n* Under the agreement, the companies will collaborate to refine the design of\nthe planned global Phase 3 trial of alvelestat and to advance the\nmanufacturing during the short option period. * Mereo will receive a\nnon-refundable option fee and, on option exercise, would also be eligible to\nreceive $40 million in upfront and R&D payments, up to $435 million in\nregulatory and commercial milestone payments, as well as double-digit tiered\nroyalties on U.S. net sales of alvelestat.\n* Mereo will lead the global Phase 3 study and regulatory interactions until\nstudy completion and will retain rest-of-world commercial rights for\nalvelestat.\n* On exercise of the option by Sentynl, the agreement provides funding for the\nglobal Phase 3 study, which could be initiated early in 2027.\nVantictumab (OMP18R5)\n* āshibio, Inc. (āshibio), Mereo’s development and commercial partner for\nvantictumab, is continuing to advance toward initiation of a Phase 2 clinical\ntrial in autosomal dominant osteopetrosis Type 2 (ADO2).\n* āshibio is responsible for the global clinical development of vantictumab.\nMereo has retained European commercial rights to the product, with āshibio\nholding commercial rights for the rest of the world.\nSecond Quarter 2026 Financial Results\n\nTotal research and development (“R&D”) expenses decreased by $3.6 million,\nfrom $5.4 million in the second quarter of 2025 to $1.8 million in the second\nquarter of 2026. The decrease was primarily due to a reduction of $2.6 million\nin R&D expenses for setrusumab and $1.0 million for alvelestat. The decrease\nin program expenses for setrusumab was primarily driven by reduction of, and\ndelays to, investment in manufacturing and ongoing activities, including\nmedical affairs activities in Europe during the second quarter of 2026. The\ndecrease in program expenses for alvelestat was primarily due to completion of\nactivities undertaken in preparation for the potential Phase 3 study during\n2025.\n\nGeneral and administrative (“G&A”) expenses decreased by $0.3 million,\nfrom $5.5 million in the second quarter of 2025 to $5.2 million in the second\nquarter of 2026. The decrease was primarily due to reductions of approximately\n$2.2 million driven by delays to investment in pre-commercial activities to\nlay the foundation for the potential commercial launch of setrusumab in Europe\nand other realized cost savings. These decreases were partially offset by the\nrecognition of a $1.9 million reduction in expenses in the second quarter of\n2025 for amounts received from our depository to reimburse certain expenses\nincurred by us in respect of our ADR program, whereas the corresponding amount\nin the current year was recognized in the first quarter of 2026.\n\nNet loss for the second quarter of 2026 was $7.0 million, compared to $14.6\nmillion for the second quarter of 2025, primarily reflecting reductions in R&D\nand G&A expenses and a lower net foreign currency translation loss.\n\nAs of June 30, 2026, the Company had cash and cash equivalents of $30.1\nmillion, compared to $41.0 million as of December 31, 2025. The Company\nexpects, based on current operational plans, that its existing cash and cash\nequivalents balance will enable it to fund its currently committed clinical\ntrials, operating expenses, and capital expenditure requirements into late\n2027. This guidance does not include any future potential payments associated\nwith business development activity around any of the Company’s programs.\n\nTotal ordinary shares issued as of June 30, 2026 were 798,093,044. Total ADS\nequivalents as of June 30, 2026 were 159,618,608, with each ADS representing\nfive ordinary shares of the Company. \n\nAbout Mereo BioPharma\n\nMereo BioPharma is a biopharmaceutical company focused on the development of\ninnovative therapeutics for rare diseases. The Company has three rare disease\nproduct candidates: setrusumab for the treatment of osteogenesis imperfecta\n(OI); alvelestat for the treatment of alpha-1 antitrypsin\ndeficiency-associated lung disease (AATD-LD); and vantictumab for the\ntreatment of autosomal dominant osteopetrosis type 2 (ADO2). The Company and\nits partner for setrusumab, Ultragenyx Pharmaceutical Inc., have reported\ntop-line results from two Phase 3 studies for setrusumab in OI in patients\naged 2 to 25 years old. Ultragenyx is funding and leading global development\nand Mereo has retained EU and UK commercial rights. Mereo has entered into an\nexclusive option and license agreement with Sentynl Therapeutics Inc. for the\nU.S. rights to commercialize alvelestat, while retaining rest of the world\nrights and will lead the global development. The agreement also grants Sentynl\nglobal rights to manufacture alvelestat for AATD-LD. Mereo has partnered with\nāshibio, Inc., for vantictumab in ADO2. āshibio, Inc. is funding and leading\nthe global development program and Mereo has retained EU and UK commercial\nrights. Mereo has also entered into exclusive global license agreements with\nReproNovo SA, for the development and commercialization of leflutrozole for\nthe treatment of infertility in men, and with Feng Biosciences for the\ndevelopment and commercialization of navicixizumab for late-stage ovarian\ncancer.\n\nForward-Looking Statements\n\nThis press release contains “forward-looking statements” that involve\nsubstantial risks and uncertainties, as well as assumptions that, if they\nnever materialize or prove incorrect, could cause our results to differ\nmaterially from those expressed or implied by such forward-looking statements.\nAll statements other than statements of historical fact contained herein are\nforward-looking statements within the meaning of Section 27A of the United\nStates Securities Act of 1933, as amended, and Section 21E of the United\nStates Securities Exchange Act of 1934, as amended. Forward-looking statements\nreflect our current expectations, beliefs and assumptions concerning future\nevents or our future financial performance and involve known and unknown\nrisks, uncertainties and other factors that may cause our actual results,\nperformance or achievements to be materially different from any future\nresults, performance or achievements expressed or implied by these\nforward-looking statements. Risks and uncertainties include, among other\nthings, the uncertainties inherent in the clinical development process; the\nCompany’s reliance on third parties to conduct and provide funding for its\nclinical trials; the sufficiency of existing cash to fund operations and/or\nthe inability to raise additional funding on favorable terms or at all; the\nuncertainty inherent in regulatory review processes, including varying\ninterpretations and analyses of data from clinical trials; the Company’s\ndependence on enrollment of patients in its clinical trials; potentially\nsmaller than anticipated market opportunities for the Company's product\ncandidates; the Company’s dependence on its key executives; and the\nCompany’s ability to maintain compliance with Nasdaq continued listing\nrequirements.\n\nYou should carefully consider the foregoing factors and the other risks and\nuncertainties that affect the Company’s business, including those described\nin the “Risk Factors” section of its Annual Report on Form 10-K, as well\nas discussions of potential risks, uncertainties, and other important factors\nin the Company’s subsequent filings with the Securities and Exchange\nCommission. Forward-looking statements are often identified by the words\n“believe,” “expect,” “anticipate,” “plan,” “intend,”\n“foresee,” “should,” “would,” “could,” “may,”\n“estimate,” “outlook,” “will,” “continue” and similar\nexpressions, including the negative thereof. The absence of these words,\nhowever, does not mean that the statements are not forward-looking. These\nforward-looking statements are based on the Company’s current expectations,\nbeliefs and assumptions concerning future developments and business conditions\nand their potential effect on the Company. While management believes that\nthese forward-looking statements are reasonable as and when made, there can be\nno assurance that future developments affecting the Company will be those that\nit anticipates. The Company wishes to caution you not to place undue reliance\non any forward-looking statements, which speak only as of the date hereof. The\nCompany undertakes no obligation to publicly update or revise any of our\nforward-looking statements after the date they are made, whether as a result\nof new information, future events or otherwise, except to the extent required\nby law.\n\n Mereo BioPharma Contacts: \n Mereo +44 (0)333 023 7300 \n Denise Scots-Knight, Chief Executive Officer \n Christine Fox, Chief Financial Officer \n \n Burns McClellan (Investor Relations Adviser to Mereo) +01 646 930 4406 \n Lee Roth \n Investors investors@mereobiopharma.com \n\n\n\n MEREO BIOPHARMA GROUP PLC \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (In thousands, except share and per share amounts) \n (Unaudited) \n \n June 30, December 31, \n 2026 2025 \n Assets \n Current assets: \n Cash and cash equivalents $ 30,118 $ 40,992 \n Prepaid expenses and other current assets 1,600 2,531 \n Research and development incentives receivables 1,683 1,497 \n Total current assets 33,401 45,020 \n Property and equipment, net 54 137 \n Operating lease right-of-use assets, net 1,003 244 \n Intangible assets, net 256 516 \n Total assets $ 34,714 $ 45,917 \n \n Liabilities \n Current liabilities: \n Accounts payable $ 1,121 $ 1,333 \n Accrued expenses 2,455 2,026 \n Operating lease liabilities – current 1,030 202 \n Other current liabilities 1,071 741 \n Total current liabilities 5,677 4,302 \n Warrant liabilities – non-current 15 38 \n Other non-current liabilities 370 661 \n Total liabilities $ 6,062 $ 5,001 \n \n Shareholders’ Equity \n Ordinary shares, par value £0.003 per share; 798,093,044 shares issued at June 30, 2026 (December 31, 2025: 795,658,504) $ 3,145 $ 3,135 \n Additional paid-in capital 552,335 549,622 \n Accumulated deficit (514,543 ) (501,018 ) \n Accumulated other comprehensive loss (12,285 ) (10,823 ) \n Total shareholders’ equity $ 28,652 $ 40,916 \n Total liabilities and shareholders’ equity $ 34,714 $ 45,917 \n\n\n\n MEREO BIOPHARMA GROUP PLC \n CONDENSED CONSOLIDATED STATEMENTS \n OF OPERATIONS AND COMPREHENSIVE LOSS \n (In thousands, except share and per share amounts) \n (Unaudited) \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n Revenue $ — $ 500 $ — $ 500 \n Operating expenses \n Cost of revenue — (132 ) — (132 ) \n Research and development (1,808 ) (5,373 ) (6,555 ) (9,303 ) \n General and administrative (5,222 ) (5,494 ) (9,241 ) (12,766 ) \n Loss from operations (7,030 ) (10,499 ) (15,796 ) (21,701 ) \n Other income/(expenses) \n Interest income 278 589 605 1,248 \n Interest expense (16 ) (24 ) (37 ) (204 ) \n Changes in the fair value of warrants 6 (101 ) 23 315 \n Foreign currency transaction (loss)/gain, net (362 ) (5,326 ) 1,267 (8,091 ) \n Benefit from research and development tax credit 119 745 214 930 \n Net loss before income tax (7,005 ) (14,616 ) (13,724 ) (27,503 ) \n Income tax benefit — — — — \n Net loss $ (7,005 ) $ (14,616 ) $ (13,724 ) $ (27,503 ) \n \n Loss per share – basic and diluted $ (0.01 ) $ (0.02 ) $ (0.02 ) $ (0.03 ) \n Weighted average shares outstanding – basic and diluted 803,562,708 799,435,329 802,688,993 794,022,295 \n \n Net loss $ (7,005 ) $ (14,616 ) $ (13,724 ) $ (27,503 ) \n Other comprehensive income/(loss) – Foreign currency translation adjustments, net of tax 286 6,647 (1,462 ) 10,206 \n Total comprehensive loss $ (6,719 ) $ (7,969 ) $ (15,186 ) $ (17,297 ) \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/21f8a651-b322-44cc-b54e-7822a7cd3414)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX7ZdvVx","title":"Mereo BioPharma Reports Second Quarter 2026 Financial Results and Provides Corporate Highlights","author":"Globe Newswire","ticker":"MREO","created":"2026-08-11T12:15:52.214Z","tickers":["MREO","MAH0Y"],"exchange":"NASDAQ","article_body":"Entered into option and license agreement with Sentynl Therapeutics for\nalvelestat, Mereo’s investigational oral therapy for Alpha-1 Antitrypsin\nDeficiency-Associated Lung Disease (AATD-LD)\n\nMereo and partner Ultragenyx engaging with regulatory agencies on potential\npath forward for setrusumab in osteogenesis imperfecta (OI); further updates\nexpected by year-end 2026\n\nCash and cash equivalents of $30.1 million at June 30, 2026, now expected to\nfund operations into late-2027\n\nLONDON, Aug. 11, 2026 (GLOBE NEWSWIRE) -- Mereo BioPharma Group plc (NASDAQ:\nMREO) (“Mereo” or the “Company”), a clinical-stage biopharmaceutical\ncompany focused on rare diseases, today announced financial results for the\nsecond quarter ended June 30, 2026, and provided an update on recent\ncorporate highlights.\n\nThe Company is also updating its previous cash runway guidance. As of June 30,\n2026, cash and cash equivalents were approximately $30 million, which are\nexpected to fund operations into late-2027.\n\n“The partnership with Sentynl Therapeutics which we announced earlier today\nmarks a significant milestone for our alvelestat program and for the Company\nas a whole. We are now working together to refine the design of the global\nPhase 3 study for our potential first-in-class oral therapy for AATD-LD and\nlook forward to a continued close collaboration during the short option\nperiod. Assuming exercise of the license option by Sentynl, we plan to\ninitiate the Phase 3 trial in early 2027,” said Denise Scots-Knight, Chief\nExecutive Officer of Mereo BioPharma. “Additionally, alongside our partner\nUltragenyx, we have had initial regulatory interactions on setrusumab with the\nFDA and the MHRA and we expect to be in a position to provide an update on the\npotential path forward by the end of this year. We finished the quarter with\napproximately $30 million in cash. Thanks to our careful expense management,\nwe now expect that this cash will provide runway into late-2027, exclusive of\nthe potential $40 million in upfront and R&D payments that we are eligible to\nreceive on exercise of the alvelestat option by Sentynl.”\n\nSecond Quarter 2026 Highlights, Recent Developments, and Anticipated\nMilestones \n\nSetrusumab (UX143)\n* The Orbit and the Cosmic Phase 3 studies did not achieve statistical\nsignificance against the primary endpoints of reduction in annualized clinical\nfracture rate, however, both achieved high statistical significance against\nthe key secondary endpoint of improvement in bone mineral density, as well as\nreductions in vertebral fractures and improvements in patient reported\noutcomes (PROs) associated with disease severity, pain / discomfort and daily\nactivities, with these PRO improvements achieving statistical significance in\nthe Orbit study. Setrusumab also achieved meaningful reductions in fractures\nin certain bones and in patients with higher fracture frequencies. Both\nstudies demonstrated a safety profile consistent with that observed in\nprevious trials.\n* Mereo and its partner, Ultragenyx Pharmaceutical, Inc. (Ultragenyx), are\nengaged with regulatory agencies to determine a potential path forward for\nsetrusumab in pediatric OI patients and, to-date, have held discussions with\nthe regulators in the U.S. and the U.K. The FDA indicated openness to\nconsidering alternative approaches to fracture analysis, with additional\nconversations needed to further define what additional clinical data would be\nneeded to support a potential BLA. In recent communications with the MHRA,\nthey encouraged further dialogue on any future development proposal, and we\nplan to have further interactions following the FDA discussions.\nAlvelestat (MPH-966)\n* Mereo recently announced an option and license agreement with Sentynl\nTherapeutics, Inc. (Sentynl), a wholly owned subsidiary of Zydus Lifesciences\nLimited. Sentynl has the right to acquire a license for the U.S. commercial\nand global manufacturing rights to alvelestat for AATD-LD. * Sentynl is a\nCalifornia-based, commercial-stage biopharmaceutical company with three\ncurrently approved products for rare diseases.\n* Under the agreement, the companies will collaborate to refine the design of\nthe planned global Phase 3 trial of alvelestat and to advance the\nmanufacturing during the short option period. * Mereo will receive a\nnon-refundable option fee and, on option exercise, would also be eligible to\nreceive $40 million in upfront and R&D payments, up to $435 million in\nregulatory and commercial milestone payments, as well as double-digit tiered\nroyalties on U.S. net sales of alvelestat.\n* Mereo will lead the global Phase 3 study and regulatory interactions until\nstudy completion and will retain rest-of-world commercial rights for\nalvelestat.\n* On exercise of the option by Sentynl, the agreement provides funding for the\nglobal Phase 3 study, which could be initiated early in 2027.\nVantictumab (OMP18R5)\n* āshibio, Inc. (āshibio), Mereo’s development and commercial partner for\nvantictumab, is continuing to advance toward initiation of a Phase 2 clinical\ntrial in autosomal dominant osteopetrosis Type 2 (ADO2).\n* āshibio is responsible for the global clinical development of vantictumab.\nMereo has retained European commercial rights to the product, with āshibio\nholding commercial rights for the rest of the world.\nSecond Quarter 2026 Financial Results\n\nTotal research and development (“R&D”) expenses decreased by $3.6 million,\nfrom $5.4 million in the second quarter of 2025 to $1.8 million in the second\nquarter of 2026. The decrease was primarily due to a reduction of $2.6 million\nin R&D expenses for setrusumab and $1.0 million for alvelestat. The decrease\nin program expenses for setrusumab was primarily driven by reduction of, and\ndelays to, investment in manufacturing and ongoing activities, including\nmedical affairs activities in Europe during the second quarter of 2026. The\ndecrease in program expenses for alvelestat was primarily due to completion of\nactivities undertaken in preparation for the potential Phase 3 study during\n2025.\n\nGeneral and administrative (“G&A”) expenses decreased by $0.3 million,\nfrom $5.5 million in the second quarter of 2025 to $5.2 million in the second\nquarter of 2026. The decrease was primarily due to reductions of approximately\n$2.2 million driven by delays to investment in pre-commercial activities to\nlay the foundation for the potential commercial launch of setrusumab in Europe\nand other realized cost savings. These decreases were partially offset by the\nrecognition of a $1.9 million reduction in expenses in the second quarter of\n2025 for amounts received from our depository to reimburse certain expenses\nincurred by us in respect of our ADR program, whereas the corresponding amount\nin the current year was recognized in the first quarter of 2026.\n\nNet loss for the second quarter of 2026 was $7.0 million, compared to $14.6\nmillion for the second quarter of 2025, primarily reflecting reductions in R&D\nand G&A expenses and a lower net foreign currency translation loss.\n\nAs of June 30, 2026, the Company had cash and cash equivalents of $30.1\nmillion, compared to $41.0 million as of December 31, 2025. The Company\nexpects, based on current operational plans, that its existing cash and cash\nequivalents balance will enable it to fund its currently committed clinical\ntrials, operating expenses, and capital expenditure requirements into late\n2027. This guidance does not include any future potential payments associated\nwith business development activity around any of the Company’s programs.\n\nTotal ordinary shares issued as of June 30, 2026 were 798,093,044. Total ADS\nequivalents as of June 30, 2026 were 159,618,608, with each ADS representing\nfive ordinary shares of the Company. \n\nAbout Mereo BioPharma\n\nMereo BioPharma is a biopharmaceutical company focused on the development of\ninnovative therapeutics for rare diseases. The Company has three rare disease\nproduct candidates: setrusumab for the treatment of osteogenesis imperfecta\n(OI); alvelestat for the treatment of alpha-1 antitrypsin\ndeficiency-associated lung disease (AATD-LD); and vantictumab for the\ntreatment of autosomal dominant osteopetrosis type 2 (ADO2). The Company and\nits partner for setrusumab, Ultragenyx Pharmaceutical Inc., have reported\ntop-line results from two Phase 3 studies for setrusumab in OI in patients\naged 2 to 25 years old. Ultragenyx is funding and leading global development\nand Mereo has retained EU and UK commercial rights. Mereo has entered into an\nexclusive option and license agreement with Sentynl Therapeutics Inc. for the\nU.S. rights to commercialize alvelestat, while retaining rest of the world\nrights and will lead the global development. The agreement also grants Sentynl\nglobal rights to manufacture alvelestat for AATD-LD. Mereo has partnered with\nāshibio, Inc., for vantictumab in ADO2. āshibio, Inc. is funding and leading\nthe global development program and Mereo has retained EU and UK commercial\nrights. Mereo has also entered into exclusive global license agreements with\nReproNovo SA, for the development and commercialization of leflutrozole for\nthe treatment of infertility in men, and with Feng Biosciences for the\ndevelopment and commercialization of navicixizumab for late-stage ovarian\ncancer.\n\nForward-Looking Statements\n\nThis press release contains “forward-looking statements” that involve\nsubstantial risks and uncertainties, as well as assumptions that, if they\nnever materialize or prove incorrect, could cause our results to differ\nmaterially from those expressed or implied by such forward-looking statements.\nAll statements other than statements of historical fact contained herein are\nforward-looking statements within the meaning of Section 27A of the United\nStates Securities Act of 1933, as amended, and Section 21E of the United\nStates Securities Exchange Act of 1934, as amended. Forward-looking statements\nreflect our current expectations, beliefs and assumptions concerning future\nevents or our future financial performance and involve known and unknown\nrisks, uncertainties and other factors that may cause our actual results,\nperformance or achievements to be materially different from any future\nresults, performance or achievements expressed or implied by these\nforward-looking statements. Risks and uncertainties include, among other\nthings, the uncertainties inherent in the clinical development process; the\nCompany’s reliance on third parties to conduct and provide funding for its\nclinical trials; the sufficiency of existing cash to fund operations and/or\nthe inability to raise additional funding on favorable terms or at all; the\nuncertainty inherent in regulatory review processes, including varying\ninterpretations and analyses of data from clinical trials; the Company’s\ndependence on enrollment of patients in its clinical trials; potentially\nsmaller than anticipated market opportunities for the Company's product\ncandidates; the Company’s dependence on its key executives; and the\nCompany’s ability to maintain compliance with Nasdaq continued listing\nrequirements.\n\nYou should carefully consider the foregoing factors and the other risks and\nuncertainties that affect the Company’s business, including those described\nin the “Risk Factors” section of its Annual Report on Form 10-K, as well\nas discussions of potential risks, uncertainties, and other important factors\nin the Company’s subsequent filings with the Securities and Exchange\nCommission. Forward-looking statements are often identified by the words\n“believe,” “expect,” “anticipate,” “plan,” “intend,”\n“foresee,” “should,” “would,” “could,” “may,”\n“estimate,” “outlook,” “will,” “continue” and similar\nexpressions, including the negative thereof. The absence of these words,\nhowever, does not mean that the statements are not forward-looking. These\nforward-looking statements are based on the Company’s current expectations,\nbeliefs and assumptions concerning future developments and business conditions\nand their potential effect on the Company. While management believes that\nthese forward-looking statements are reasonable as and when made, there can be\nno assurance that future developments affecting the Company will be those that\nit anticipates. The Company wishes to caution you not to place undue reliance\non any forward-looking statements, which speak only as of the date hereof. The\nCompany undertakes no obligation to publicly update or revise any of our\nforward-looking statements after the date they are made, whether as a result\nof new information, future events or otherwise, except to the extent required\nby law.\n\n Mereo BioPharma Contacts: \n Mereo +44 (0)333 023 7300 \n Denise Scots-Knight, Chief Executive Officer \n Christine Fox, Chief Financial Officer \n \n Burns McClellan (Investor Relations Adviser to Mereo) +01 646 930 4406 \n Lee Roth \n Investors investors@mereobiopharma.com \n\n\n\n MEREO BIOPHARMA GROUP PLC \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (In thousands, except share and per share amounts) \n (Unaudited) \n \n June 30, December 31, \n 2026 2025 \n Assets \n Current assets: \n Cash and cash equivalents $ 30,118 $ 40,992 \n Prepaid expenses and other current assets 1,600 2,531 \n Research and development incentives receivables 1,683 1,497 \n Total current assets 33,401 45,020 \n Property and equipment, net 54 137 \n Operating lease right-of-use assets, net 1,003 244 \n Intangible assets, net 256 516 \n Total assets $ 34,714 $ 45,917 \n \n Liabilities \n Current liabilities: \n Accounts payable $ 1,121 $ 1,333 \n Accrued expenses 2,455 2,026 \n Operating lease liabilities – current 1,030 202 \n Other current liabilities 1,071 741 \n Total current liabilities 5,677 4,302 \n Warrant liabilities – non-current 15 38 \n Other non-current liabilities 370 661 \n Total liabilities $ 6,062 $ 5,001 \n \n Shareholders’ Equity \n Ordinary shares, par value £0.003 per share; 798,093,044 shares issued at June 30, 2026 (December 31, 2025: 795,658,504) $ 3,145 $ 3,135 \n Additional paid-in capital 552,335 549,622 \n Accumulated deficit (514,543 ) (501,018 ) \n Accumulated other comprehensive loss (12,285 ) (10,823 ) \n Total shareholders’ equity $ 28,652 $ 40,916 \n Total liabilities and shareholders’ equity $ 34,714 $ 45,917 \n\n\n\n MEREO BIOPHARMA GROUP PLC \n CONDENSED CONSOLIDATED STATEMENTS \n OF OPERATIONS AND COMPREHENSIVE LOSS \n (In thousands, except share and per share amounts) \n (Unaudited) \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n Revenue $ — $ 500 $ — $ 500 \n Operating expenses \n Cost of revenue — (132 ) — (132 ) \n Research and development (1,808 ) (5,373 ) (6,555 ) (9,303 ) \n General and administrative (5,222 ) (5,494 ) (9,241 ) (12,766 ) \n Loss from operations (7,030 ) (10,499 ) (15,796 ) (21,701 ) \n Other income/(expenses) \n Interest income 278 589 605 1,248 \n Interest expense (16 ) (24 ) (37 ) (204 ) \n Changes in the fair value of warrants 6 (101 ) 23 315 \n Foreign currency transaction (loss)/gain, net (362 ) (5,326 ) 1,267 (8,091 ) \n Benefit from research and development tax credit 119 745 214 930 \n Net loss before income tax (7,005 ) (14,616 ) (13,724 ) (27,503 ) \n Income tax benefit — — — — \n Net loss $ (7,005 ) $ (14,616 ) $ (13,724 ) $ (27,503 ) \n \n Loss per share – basic and diluted $ (0.01 ) $ (0.02 ) $ (0.02 ) $ (0.03 ) \n Weighted average shares outstanding – basic and diluted 803,562,708 799,435,329 802,688,993 794,022,295 \n \n Net loss $ (7,005 ) $ (14,616 ) $ (13,724 ) $ (27,503 ) \n Other comprehensive income/(loss) – Foreign currency translation adjustments, net of tax 286 6,647 (1,462 ) 10,206 \n Total comprehensive loss $ (6,719 ) $ (7,969 ) $ (15,186 ) $ (17,297 ) \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/21f8a651-b322-44cc-b54e-7822a7cd3414)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-11T12:15:52.255402893Z","server_sent_at_ms":1786450552255},"received_at":"2026-08-11T12:15:52.445Z","source_url":"https://www.globenewswire.com/news-release/2026/08/11/3342688/0/en/mereo-biopharma-reports-second-quarter-2026-financial-results-and-provides-corporate-highlights.html"},"analysis":{"id":"104380","press_release_id":"115386","analysis_json":{"industry":{"label":"Biotechnology","sector":"Health Care"},"redFlags":["Setrusumab Phase 3 studies (Orbit and Cosmic) did not achieve statistical significance against primary endpoints","Cash balance of $30.1M remains low, requiring efficient execution or deal monetization"],"eventType":"earnings","narrative":"Mereo reported a Q2 net loss of $7.0 million, narrowed from $14.6 million in the prior year, with cash and cash equivalents of $30.1 million now expected to fund operations into late 2027.\n\nThe company announced an option and license agreement with Sentynl Therapeutics for alvelestat, potentially generating $40 million in upfront payments and up to $435 million in milestones if the option is exercised.\n\nHowever, Phase 3 studies for setrusumab missed statistical significance on primary fracture reduction endpoints, though they demonstrated significant improvements in bone mineral density and vertebral fractures.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"Mixed data on setrusumab weighs on program, but alvelestat partnership and cost cuts extend 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fractures.","key_figures":{"revenue":0,"customDimensions":{"runway":"late-2027","net_loss":7000000,"ga_expenses":5200000,"rd_expenses":1800000,"deal_upfront":40000000,"cash_position":30100000,"deal_milestones":435000000}},"named_entities":{"people":[{"name":"Denise Scots-Knight","role":"Chief Executive Officer"}],"products":["alvelestat","setrusumab","vantictumab"],"companies":[{"name":"Sentynl Therapeutics, Inc.","relationship":"partner"},{"name":"Ultragenyx Pharmaceutical, Inc.","ticker":"RARE","relationship":"partner"},{"name":"Zydus Lifesciences Limited","relationship":"parent of partner"},{"name":"āshibio, Inc.","relationship":"partner"}],"dollarAmounts":[{"amount":"$30.1 million","context":"cash and cash equivalents as of June 30, 2026"},{"amount":"$40 million","context":"potential upfront and R&D payments from Sentynl option exercise"},{"amount":"$435 million","context":"potential regulatory and commercial milestone payments"},{"amount":"$7.0 million","context":"Q2 2026 net 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