Mereo BioPharma Group (NASDAQ:MREO) Issues Quarterly Earnings Results, Hits Estimates

Mereo BioPharma Group (NASDAQ:MREO) announced its quarterly earnings results on Thursday. The company reported ($0.01) EPS for the quarter, hitting analysts’ consensus estimates of ($0.01), Zacks reports.

Mereo BioPharma Group Trading Down 5.2%

Shares of Mereo BioPharma Group stock opened at $0.34 on Friday. The stock has a market capitalization of $54.42 million, a price-to-earnings ratio of -5.70 and a beta of 0.34. The firm’s 50-day moving average price is $0.44 and its two-hundred day moving average price is $1.31. Mereo BioPharma Group has a 1-year low of $0.20 and a 1-year high of $3.05.

Analyst Ratings Changes

Several research firms have recently weighed in on MREO. Jefferies Financial Group lowered Mereo BioPharma Group from a “buy” rating to a “hold” rating in a research note on Tuesday, December 30th. BTIG Research restated a “buy” rating and set a $1.00 target price on shares of Mereo BioPharma Group in a research report on Friday, January 16th. Needham & Company LLC decreased their price target on Mereo BioPharma Group from $5.00 to $3.00 and set a “buy” rating on the stock in a research note on Tuesday, January 13th. Robert W. Baird set a $1.00 price target on Mereo BioPharma Group in a research report on Monday, December 29th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Mereo BioPharma Group in a research note on Thursday, January 22nd. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $3.25.

Key Headlines Impacting Mereo BioPharma Group

Here are the key news stories impacting Mereo BioPharma Group this week:

• Positive Sentiment: Company updates: Mereo published full‑year 2025 results and corporate highlights and said additional data analyses from the Orbit and Cosmic Phase 3 studies of setrusumab (UX143) in osteogenesis imperfecta are ongoing — a potential long‑term value driver if analyses produce positive signals. Mereo BioPharma Reports Full Year 2025 Financial Results and Provides Corporate Highlights
• Negative Sentiment: Earnings miss: Mereo reported quarterly EPS of ($0.05), missing the consensus of ($0.01). The larger-than-expected loss likely pressured sentiment and raises near‑term funding and execution concerns for a small biotech with limited market cap. Quarterly Financial Results Press Release
• Negative Sentiment: Legal / litigation risk: Multiple plaintiff law firms have announced or publicized a securities class action covering ADS purchases from June 5, 2023 through Dec 26, 2025 and are soliciting lead plaintiffs (April 6, 2026 deadline). The proliferation of filings and solicitations (Rosen, Schall, Faruqi, Bronstein, Berger Montague, Pomerantz, DJS, etc.) increases uncertainty and could lead to costly litigation or settlements. Rosen Law Firm Notice Bronstein, Gewirtz & Grossman Notice Faruqi & Faruqi Notice

Institutional Investors Weigh In On Mereo BioPharma Group

Large investors have recently bought and sold shares of the business. Frazier Life Sciences Management L.P. raised its position in Mereo BioPharma Group by 20.7% in the 2nd quarter. Frazier Life Sciences Management L.P. now owns 9,440,112 shares of the company’s stock valued at $25,583,000 after purchasing an additional 1,620,249 shares during the last quarter. Aberdeen Group plc grew its holdings in shares of Mereo BioPharma Group by 82.9% during the third quarter. Aberdeen Group plc now owns 5,538,699 shares of the company’s stock worth $11,410,000 after purchasing an additional 2,509,827 shares during the last quarter. 683 Capital Management LLC increased its stake in shares of Mereo BioPharma Group by 208.2% in the fourth quarter. 683 Capital Management LLC now owns 15,025,000 shares of the company’s stock valued at $6,261,000 after buying an additional 10,150,000 shares in the last quarter. EcoR1 Capital LLC acquired a new stake in shares of Mereo BioPharma Group in the fourth quarter valued at $3,274,000. Finally, Monaco Asset Management SAM raised its holdings in shares of Mereo BioPharma Group by 67.6% in the fourth quarter. Monaco Asset Management SAM now owns 1,585,214 shares of the company’s stock valued at $661,000 after buying an additional 639,299 shares during the last quarter. 62.83% of the stock is currently owned by institutional investors.

About Mereo BioPharma Group

Mereo BioPharma Group plc is a clinical‐stage biopharmaceutical company focused on developing novel therapies for rare diseases, oncology and severe respiratory conditions. The company pursues an asset‐centric model, in which it in-licenses or acquires clinical-stage small molecules and monoclonal antibodies with established safety profiles. By concentrating resources on a select number of programs, Mereo aims to accelerate proof-of-concept studies and maximize the potential value of each therapeutic candidate.

Mereo’s pipeline includes investigational therapies for skeletal disorders, such as setrusumab (BPS-804) for osteogenesis imperfecta, and treatments for acute and chronic respiratory diseases.