NASDAQ$MREO

Mereo Biopha-Adr · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

Mereo BioPharma reported its financial results for the first quarter ended March 31, 2025, highlighting continued progress in its Phase 3 Orbit study and a strong cash position.

Mereo BioPharma reported a net loss of $12.9 million for the first quarter of 2025, compared to a net loss of $9.0 million in the same period last year. The company's cash and cash equivalents stood at $62.5 million as of March 31, 2025, which is expected to fund operations into 2027. Progress continues in the Phase 3 Orbit study of setrusumab, with a read-out anticipated in mid-2025 or Q4 2025.

  • Net loss for Q1 2025 was $12.9 million, an increase from $9.0 million in Q1 2024.
  • Cash and cash equivalents were $62.5 million as of March 31, 2025, down from $69.8 million at the end of 2024.
  • The Phase 3 Orbit study for setrusumab is on track for a second interim analysis in mid-2025 or final analysis in Q4 2025.
  • Alvelestat is now Phase 3 ready, with start-up activities for the pivotal study ongoing and discussions with potential partners underway.

Headline financials

Total Revenue

$0.00

Previous: $0.00
EPS (adj)

-$0.02

Previous: -$0.01-100.0%
Net Income

-$12.9M

Previous: -$8.95M-44.1%
Operating Income

-$11.2M

Previous: -$9.89M-13.2%

Revenue & EPS history

Mereo Biopha-Adr · Revenue · Quarterly

$0

Q1 2025
Beat estimate in 0 of 4 quarters(0%)
ActualEstimate

Forward guidance

Mereo BioPharma anticipates 2025 to be a significant year with key milestones, including the read-out of the Phase 3 Orbit study. The company expects its current cash and cash equivalents to fund operations into 2027, excluding potential upfront payments from new partnerships.

Tailwinds

  • Phase 3 Orbit study of setrusumab remains on track for read-out in mid-2025 or Q4 2025.
  • Continued investment in pre-commercial activities for setrusumab in Europe to enable a successful launch.
  • Alvelestat is now Phase 3 ready, with start-up activities for the pivotal study ongoing.
  • Ongoing discussions with multiple potential development and commercialization partners for alvelestat.
  • Existing cash and cash equivalents are expected to fund operations into 2027.

Headwinds

  • Guidance does not include any potential upfront payments associated with a partnership for alvelestat.
  • Guidance does not include any potential upfront payments from business development activity around non-core programs.
  • The company's financial performance is subject to the inherent uncertainties of the clinical development process.
  • Reliance on third parties for funding and conduct of clinical trials poses a risk.
  • Dependence on patient enrollment in clinical trials and key executives could impact future developments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 12 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+3.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+17.3%

Avg return

30 days after

69%

9 / 13 earnings

Positive

+11.9%

Q4 2023

Best reaction

-6.1%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.1%+0.9%
Q4 2025+4.6%-4.5%-4.3%
Q3 2025+6.3%+0.6%+27.1%
Q2 2025+9.4%+14.5%+19.7%
Q1 2025+1.3%-2.2%+25.3%
Q4 2024-3.6%-11.6%+15.6%
Q3 2023-5.4%-17.5%-12.9%
Q3 2024-5.4%-17.5%-12.9%
Q2 2024+6.2%+16.4%+18.0%
Q1 2023+10.5%+10.1%+43.6%
Q1 2024+10.5%+10.1%+43.6%
Q4 2023+11.9%+15.6%-7.1%
Q4 2022-6.1%-10.3%+52.3%

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