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Mereo BioPharma Group plc
("Mereo" or the "Company" or the "Group")
Mereo BioPharma Update on Global Offering and Application to List its ADSs on the Nasdaq Global Market
London, April 26, 2018 - Mereo BioPharma Group plc (AIM: MPH), a multi-asset biopharmaceutical company focused on the acquisition, development and commercialisation of innovative therapeutics that aim to improve outcomes for patients with rare and specialty diseases, announces today that the Company has withdrawn the global offering and postponed its proposed listing of its American Depositary Shares ("ADSs") on the Nasdaq Global Market that was previously announced on April 9, 2018. The Company believes that current market conditions are not conducive for an offering on terms that would be in the best interests of its shareholders.
The Company remains well funded, with a net cash, short-term deposits and short-term investment balance of £52.5 million at December 31, 2017. This provides a strong cash runway to deliver the next key clinical programme milestones and corporate objectives.
The development of the Company's clinical assets remains on track. In December 2017, the Company reported positive top-line data from its completed phase 2 dose-ranging clinical trial for BCT-197 for the treatment of acute exacerbations of chronic obstructive pulmonary disease and we are subsequently making good progress in partnering discussions. In March 2018, the Company reported positive top-line data from its phase 2b dose-ranging clinical trial for BGS-649, a once a week oral treatment for hypogonadotropic hypogonadism (HH) in obese men. The development of the Company's two other clinical assets, BPS-804, a novel antibody the Company is developing as a treatment for osteogenesis imperfecta (OI), and AZD-9668, for patients with severe AATD, also remains on track.
Dr Denise Scots-Knight, Chief Executive Officer of Mereo BioPharma Group plc commented:
"We received positive feedback and strong levels of institutional interest during the offering process. However, challenging stock market conditions have led our Board to take the decision to withdraw our global offering and postpone our proposed listing of ADSs on Nasdaq in the interests of our existing shareholders.
We are making good progress in the clinic and have reported positive data from both our BCT-197 and BGS-649 clinical programmes over the last few months. Subsequently we are also progressing BCT-197 partnering discussions. We remain well funded and are confident in the future development and potential value of our pipeline."
For Further Enquiries:
Mereo BioPharma Group plc
Denise Scots-Knight, Chief Executive Officer
Richard Jones, Chief Financial Officer
+44 (0)333 023 7319
Nominated Adviser and Joint Broker
Cantor Fitzgerald Europe
+44 (0)20 7894 7000
RBC Capital Markets
+44 (0)20 7653 4000
UK Public Relations Advisor to Mereo Biopharma
+44 (0)20 3727 1000
US Public Relations Advisor to Mereo Biopharma
+01 (0) 212 213 0006
Mereo is a multi-asset biopharmaceutical company focused on the acquisition, development and commercialization of innovative therapeutics that aim to improve outcomes for patients with rare and specialty diseases. The portfolio consists of four clinical-stage product candidates, each of which were acquired from large pharmaceutical companies: BPS-804 for the treatment of osteogenesis imperfecta; AZD-9668 for the treatment of severe alpha-1 antitrypsin deficiency; BCT-197 for the treatment of acute exacerbations of chronic obstructive pulmonary disease ("AECOPD"); and BGS-649 for the treatment of hypogonadotropic hypogonadism ("HH") in obese men. Each of the Company's product candidates has generated positive clinical data for Mereo's target indication or in a related indication. The Company's strategy is to selectively acquire product candidates that have already received significant investment from pharmaceutical companies and that have substantial preclinical, clinical and manufacturing data packages. Since inception the Company has commenced large, randomized, placebo-controlled Phase 2 clinical trials for three of the product candidates and announced positive top-line results from its Phase 2 clinical trial of BCT-197 as an acute therapy for patients with AECOPD in December 2017 and positive top-line data from its Phase 2b dose-ranging study with BGS-649 for the treatment of HH.