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Jun 30, 2025
Mereo Biopha-Adr Q2 2025 Earnings Report
Mereo Biopharma reported a net loss in Q2 2025 amid higher R&D investment in setrusumab, while maintaining sufficient cash runway into 2027.
Key Takeaways
Mereo Biopharma posted a Q2 2025 net loss of $14.6 million, primarily due to foreign currency loss and increased R&D expenses linked to its osteogenesis imperfecta program. G&A expenses declined from the prior year due to ADR reimbursements and lower professional fees. With $56.1 million in cash, the company expects to fund operations into 2027 as it progresses late-stage trials.
Net loss was $14.6 million, compared to $12.3 million in Q2 2024
R&D expenses rose to $5.4 million, driven by the setrusumab program
G&A expenses decreased to $5.5 million due to ADR reimbursements
Cash position of $56.1 million expected to fund operations into 2027
Forward Guidance
Mereo expects final data from Phase 3 trials of setrusumab by year-end and remains financially positioned to advance its key programs, including potential partnership activity for alvelestat.
Positive Outlook
- Phase 3 Orbit and Cosmic studies progressing toward year-end 2025 readout
- Setrusumab showing acceptable safety profile in interim analysis
- Cash runway expected to fund operations into 2027
- Advancing partnership discussions for alvelestat
- Pre-commercial activities ongoing for European market access
Challenges Ahead
- Net loss widened due to foreign currency transaction loss
- Ongoing expenses related to real-world evidence and manufacturing
- No near-term revenue growth from pipeline assets
- Exposure to FX volatility from GBP/USD conversion
Historical Earnings Impact
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Avg. Return Before/After Earnings
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