Mereo BioPharma Reports $500,000 Revenue in Q2 2025, Net Loss Increases to $14.6 Million

Mereo BioPharma Group plc reported a revenue of $500,000 for the second quarter of 2025, marking a significant increase from zero revenue in the same period last year. This revenue was generated from a milestone payment related to the ReproNovo Licensing Agreement, which was triggered by the initiation of a Phase 2 trial for leflutrozole. Despite this revenue recognition, the company continues to operate at a loss, with a net loss of $14.6 million for the quarter, compared to a loss of $12.3 million in the prior year. For the first half of 2025, Mereo's net loss totaled $27.5 million, up from $21.2 million in the same period of 2024.

Operating expenses for the second quarter decreased to $10.5 million from $12.8 million year-over-year, primarily due to a reduction in general and administrative expenses, which fell from $7.9 million to $5.5 million. Research and development expenses increased slightly to $5.4 million, driven by higher costs associated with the setrusumab program, offset by decreased spending on alvelestat and etigilimab. The company’s accumulated deficit as of June 30, 2025, stood at $486.6 million, reflecting ongoing investments in its clinical programs.

In terms of strategic developments, Mereo has made progress in its clinical trials, particularly with setrusumab, which is being evaluated for osteogenesis imperfecta. The company announced that the Phase 3 portion of the Orbit study is on track for a final analysis by the end of 2025. Additionally, Mereo's collaboration with Ultragenyx for the development of setrusumab continues to advance, with the Data Monitoring Committee confirming an acceptable safety profile for the drug.

Mereo's cash and cash equivalents decreased to $56.1 million as of June 30, 2025, down from $69.8 million at the end of 2024. The company anticipates that its current cash reserves will be sufficient to fund operations into 2027, although it will require additional funding to support ongoing development and potential commercialization of its product candidates. The company has historically relied on equity financing and collaboration agreements to fund its operations, and it plans to continue this approach moving forward.

Looking ahead, Mereo BioPharma remains focused on advancing its clinical programs and securing additional funding to support its operations. The company acknowledges the inherent risks in the biotechnology sector, including the need for successful clinical trials and regulatory approvals, which could impact its financial performance and operational strategy in the future.