JPMorgan Downgrades Mereo BipPharma Group (MREO) to Neutral

JPMorgan analyst Priyanka Grover downgraded Mereo BipPharma Group (NASDAQ: MREO) from Overweight to Neutral.

The analyst comments: "We are moving to a Neutral rating (prior Overweight) on MREO shares and withdrawing our December 2026 price target (prior PT of $8) due to the uncertainty of the regulatory process for the setrusumab program.

The phase 3 ORBIT and COSMIC trials of setrusumab in osteogenesis imperfecta (OI) missed their primary endpoints of annualized fracture rate (AFR). As a reminder, in ORBIT, setrusumab AFR was 0.71 compared to placebo AFR of 0.55 (p=0.305), and in COSMIC, setrusumab AFR was 0.91 compared to bisphosphonates AFR of 1.15 (p=0.338).

We maintain that the bone mineral density and pain data from the phase 3 ORBIT / COSMIC trials are supportive, especially in younger / pediatric patients... Setrusumab achieved statistically significant increases in both trials in bone mineral density (BMD) at 12 months (ORBIT p<0.0001, COSMIC p=0.0116). In COSMIC, setrusumab showed 59% fewer vertebral fractures of all types (p=0.081). The ORBIT trial also hit on 2 pain scores – the Patient Global Impression Scale of Severity (PGIS) and Pain / Comfort."

For an analyst ratings summary and ratings history on Mereo BipPharma Group click here. For more ratings news on Mereo BipPharma Group click here.

Shares of Mereo BipPharma Group closed at $0.34 yesterday.

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