Mereo BioPharma Reports $12.9 Million Net Loss in Q1 2025

Mereo BioPharma Group plc reported a net loss of $12.9 million for the first quarter of 2025, an increase from a net loss of $9.0 million in the same period of 2024. The company's operating expenses totaled $11.2 million, with research and development costs slightly decreasing to $3.9 million from $4.0 million year-over-year. General and administrative expenses rose significantly to $7.3 million, up from $5.9 million, primarily due to a reduction in reimbursements related to the company's American Depositary Receipt (ADR) program. The loss per share for the quarter was $0.02, compared to $0.01 in the prior year.

In terms of financial position, Mereo's total assets decreased to $68.3 million as of March 31, 2025, down from $76.4 million at the end of 2024. Cash and cash equivalents also fell to $62.5 million from $69.8 million. The company’s accumulated deficit increased to $472.0 million, reflecting ongoing investments in its clinical programs. Notably, the company’s liabilities decreased significantly to $8.2 million from $15.4 million, largely due to the conversion of convertible loan notes and a reduction in accrued expenses.

Strategically, Mereo has focused on advancing its product candidates, particularly setrusumab and alvelestat, which target rare diseases. The company has made progress in its clinical trials, with setrusumab receiving multiple designations from regulatory authorities, including orphan designation and Breakthrough Therapy designation from the FDA. Mereo's collaboration with Ultragenyx for the manufacturing and supply of setrusumab continues to be a key component of its strategy, and the company anticipates further developments in this area.

Operationally, Mereo's employee headcount remains stable, and the company continues to engage with contract research organizations to support its clinical trials. The company has also seen fluctuations in foreign currency transaction gains and losses, which impacted its financial results. The foreign currency translation adjustments resulted in a gain of $3.6 million for the quarter, contrasting with a loss of $0.8 million in the previous year.

Looking ahead, Mereo expects its current cash reserves to fund operations into 2027, although it acknowledges the need for additional funding to support ongoing development and potential commercialization of its product candidates. The company plans to pursue various funding avenues, including public or private equity and non-dilutive financing, to ensure it can continue its research and development efforts. Mereo remains committed to its strategy of developing innovative therapeutics for rare diseases, despite the inherent risks and uncertainties in the biotechnology sector.