Want to see MREO full AI Analyst Report?
Top Page
Mereo Biopharma Group Plc
(NASDAQ:MREO)
Select Model
Select Model
Rating:46Neutral
Price Target:
$0.25
▼(-8.52% Downside)
Action:Reiterated
Date:08/19/26
The score is primarily constrained by weak financial performance (near-zero TTM revenue, ongoing losses, and continued cash burn), with technicals also indicating limited momentum and a challenged long-term trend versus the 200-day average. Corporate events are mixed, with delisting-compliance risk tempered by a partnership that could improve funding optionality; valuation offers limited support due to negative earnings and no dividend.
Positive Factors
Low financial leverage
Minimal debt limits solvency pressure and preserves flexibility compared with highly leveraged biotech peers. This gives Mereo more capacity to fund development or negotiate partnerships without substantial interest or repayment burdens.
Negative Factors
Persistent cash burn
Sustained negative operating and free cash flow means Mereo cannot currently self-fund development. Continued trials and regulatory work will likely require additional financing, partnerships, or asset transactions, creating ongoing liquidity and dilution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Low financial leverage
Minimal debt limits solvency pressure and preserves flexibility compared with highly leveraged biotech peers. This gives Mereo more capacity to fund development or negotiate partnerships without substantial interest or repayment burdens.
Read all positive factors
Mereo Biopharma Group Plc (MREO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.30M
Dividend YieldN/A
Average Volume (3M)1.26M
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth-100.00%
EPS Growth44.94%
CountryUS
Employees39
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.18
Shares Outstanding159,690,980
10 Day Avg. Volume647,111
30 Day Avg. Volume1,259,275
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.62
Price to Sales (P/S)132.86
P/FCF Ratio-2.14
Enterprise Value/Market Cap<0.01
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$3.00Price Target Upside1011.11% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.05
Revenue Forecast (FY)$1.77M
Mereo Biopharma Group Plc Business Overview & Revenue Model
Company Description
Mereo BioPharma Group plc, a London-based biopharmaceutical firm established in 2015, specializes in developing and commercializing innovative therapies for oncology and rare conditions. Operating both in the United Kingdom and internationally, th...
How the Company Makes Money
Mereo Biopharma primarily makes money through (1) collaboration and licensing arrangements and (2) funding inflows typical for a clinical-stage biotech (such as raising capital), rather than product sales from a broad commercial portfolio. Revenue...
Mereo Biopharma Group Plc Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 500.00K | 0.00 | 10.00M | 0.00 | 49.21M |
| Gross Profit | -896.63K | 367.00K | 0.00 | 7.43M | 1.15M | 25.04M |
| EBITDA | -33.04M | -40.47M | 0.00 | -26.06M | -37.87M | 25.49M |
| Net Income | -28.08M | -41.88M | 0.00 | -29.47M | -42.22M | 17.17M |
Balance Sheet | ||||||
| Total Assets | 34.71M | 45.92M | 76.39M | 66.50M | 77.41M | 170.96M |
| Cash, Cash Equivalents and Short-Term Investments | 30.12M | 40.99M | 69.80M | 57.42M | 68.18M | 127.52M |
| Total Debt | 1.03M | 202.00K | 6.43M | 5.95M | 15.37M | 22.66M |
| Total Liabilities | 6.06M | 5.00M | 15.42M | 15.96M | 26.01M | 51.95M |
| Stockholders Equity | 28.65M | 40.92M | 60.97M | 50.54M | 51.40M | 119.01M |
Cash Flow | ||||||
| Free Cash Flow | -25.35M | -30.99M | -33.53M | -21.55M | -48.83M | -7.79M |
| Operating Cash Flow | -25.35M | -30.97M | -32.83M | -21.13M | -48.82M | -7.07M |
| Investing Cash Flow | -1.52K | -20.00K | -699.00K | -419.00K | 1.99M | -568.20K |
| Financing Cash Flow | 100.73K | 327.00K | 46.15M | 7.97M | 200.00K | 104.80M |
Mereo Biopharma Group Plc Technical Analysis
Negative
0.27
Price Trends
0.31
Negative
0.30
Negative
0.61
Negative
Market Momentum
-0.01
Positive
30.68
Neutral
4.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MREO, the sentiment is Negative. The current price of 0.27 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.31, and below the 200-day MA of 0.61, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 30.68 is Neutral, neither overbought nor oversold. The STOCH value of 4.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MREO.
Mereo Biopharma Group Plc Risk Analysis
Mereo Biopharma Group Plc disclosed 73 risk factors in its most recent earnings report. Mereo Biopharma Group Plc reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mereo Biopharma Group Plc Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $1.35B | 9.74 | -109.40% | ― | ― | ― | |
55 Neutral | $319.85M | -1.14 | -84.95% | ― | 6.02% | -305.54% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $338.53M | -5.21 | -41.69% | ― | 6280.00% | -212.54% | |
46 Neutral | $40.30M | -1.39 | -74.76% | ― | -100.00% | 44.94% | |
45 Neutral | $557.55M | -3.91 | -56.60% | ― | -100.00% | -49.28% |
* Healthcare Sector Average
MREO
Mereo Biopharma Group Plc
0.25
-1.52
-85.76%
OMER
Omeros
18.61
14.32
333.80%
VNDA
Vanda
5.29
0.58
12.31%
CAPR
Capricor Therapeutics
9.59
3.26
51.50%
ABEO
Abeona Therapeutics
5.92
-0.93
-13.58%
Mereo Biopharma Group Plc Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Mereo BioPharma Granted Nasdaq Extension to Regain Compliance
Negative
Aug 19, 2026
Mereo BioPharma Group plc is a biopharmaceutical company focused on developing and commercializing therapeutic products, with its shares traded in the U.S. as American Depositary Shares on the Nasdaq Capital Market. The firm’s U.S. listing p...
Business Operations and StrategyProduct-Related Announcements
Mereo Biopharma Grants Sentynl Rights to Alvelestat Therapy
Positive
Aug 11, 2026
On August 11, 2026, Mereo BioPharma entered into an option and license agreement granting Sentynl Therapeutics U.S. commercial and global manufacturing rights to alvelestat for alpha‑1 antitrypsin deficiency‑associated lung disease, a ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.