Cantor: Mereo Biopharma – Boost for brittle bone programme

Mereo Biopharma (BUY) – Boost for brittle bone programme
MPH LN (284p, TP 670p from 600p), Market Cap: £181.8m
(Corporate Stock)
We have made no secret of our enthusiasm for the brittle bone disease programme at Mereo. There are several reasons for this including the novelty of the approach; the supporting clinical efficacy data; the clean safety profile and a well understood mechanism of action. As an orphan disorder we can foresee several benefits such as regulatory help, premium pricing, high awareness thanks to patient advocacy groups and the potential for Mereo to retain full ownership. The announcement of acceptance for the EMA Adaptive Pathways programme is extremely important and reflects the unmet need and suggests earlier availability in Europe. We have increased our TP as a result.