Why Mereo BioPharma Shares Are Jumping Today

  • AstraZeneca plc AZN is rumored to be eyeing take over of Mereo BioPharma Group plc MREO, according to a report in The Times.
  • The Times' report says that "Mereo would accept $5, equating to $500 million including American depositary receipts or ADRs. Evercore and Citigroup are said to be involved as advisers."
  • Mereo's lead drug, a TIGIT called etigilimab, is putting them in a race that disappointed after Roche Holdings AG RHHBY suffered failures
  • The company reported at ASCO an overall response rate (ORR) of 11% and disease control rate (DCR) of 44%, including a complete response among 27 evaluable patients. 
  • Mereo in-licensed AstraZeneca's orally-active neutrophil elastase inhibitor alvelestat for the rare disease alpha-1 antitrypsin deficiency (AATD) in 2017.
  • Recently, Mereo reported topline efficacy and safety results from a Phase 2 study of alvelestat in AATD-associated emphysema.
  • The rumor has emerged as Mereo has just been notified by the Nasdaq that the price of its American Depository Shares has failed to maintain the minimum price of $1 over the last 30 days, putting it at risk of delisting.
  • Price Action: MREO shares are up 61.89% at $1.29 during the market session on the last check Friday.
Posted In: BiotechM&ANewsPenny StocksHealth CareRumorsMoversTrading IdeasGeneralBriefswhy it's moving