Mereo BioPharma Announces Updated Operating Plan to Maximize Shareholder Value
Mereo BioPharma Group plc (NASDAQ: MREO), a clinical-stage biopharmaceutical company focused on rare diseases and oncology, has announced an updated operating plan aimed at maximizing shareholder value. The plan includes a targeted reduction in the employee base of up to 40% and significant reductions in other costs, extending the company's cash runway into 2026.
The company will retain core capabilities and key personnel to advance its two core rare disease programs and generate value from its assets. As of June 30, 2022, Mereo had approximately £76 million in cash on hand.
Updates on lead programs include:
- Setrusumab (UX143): Currently being studied in an ongoing Phase 2/3 registrational trial in patients aged 5-25 with Osteogenesis Imperfecta (OI). A protocol amendment for the Phase 2 part of the study removes the placebo arm and continues evaluating the same two dose levels of setrusumab. Ultragenyx expects to complete enrollment in this portion of the study in the next few months and to transition to the Phase 3 portion in the first half of 2023.
- Alvelestat: An R&D update on the alvelestat program for alpha-1-anti-trypsin deficiency (AATD) has been scheduled for October 31, 2022. This follows the receipt of Fast Track Designation from the FDA.
- Etigilimab: In the ongoing Phase 1b/2 study in combination with nivolumab, 16 patients remain on study and responding to therapy. The study continues to be wound down as patients’ disease progresses.
Dr. Denise Scots-Knight, Chief Executive Officer of Mereo, stated, "Our revised operating plan seeks to retain key personnel and conserve shareholder capital as we work to maximize the value of our promising rare disease programs for our shareholders."