Cautiously Optimistic Analyst Sentiment on Mereo BioPharma Group (MREO) Following Disappointing Phase 4 Data for Setrusumab

Mereo BioPharma Group plc (NASDAQ:MREO) is included in our list of the stocks under $1 that will explode.

Cautiously Optimistic Analyst Sentiment on Mereo BioPharma Group (MREO) Following Disappoint Phase 4 Data for Setrusumab

On December 30, 2025, TheFly reported that Jefferies downgraded Mereo BioPharma Group plc (NASDAQ:MREO) from ‘Buy’ to ‘Hold’. The firm reduced its price target from $7.00 to $0.50, citing disappointing Phase 4 data for setrusumab. The antibody missed its primary endpoints in both the ORBIT and COSMIC trials, resulting in a sharp decline in the company’s and its partner Ultragenyx’s shares. The firm believes Mereo’s heavy reliance on a potential EUA path for setrusumab and its need to secure a partnership for alvelestat adds risk to the company’s outlook.

On the previous day, Baird also reduced its price target on Mereo BioPharma Group plc (NASDAQ:MREO) from $8 to $1, while maintaining an ‘Outperform’ rating. Removing its “Fresh Pick” designation, the firm sees a lower chance of success for setrusumab in Osteogenesis Imperfecta due to the lack of statistically significant fracture-rate reduction. The probability of success set by the firm is 5%.

On December 29, 2025, Mereo BioPharma Group plc (NASDAQ:MREO) announced that both ORBIT and COSMIC failed on primary fracture endpoints. Both reported statistically significant improvements in bone mineral density and an unchanged safety profile.

Mereo BioPharma Group plc (NASDAQ:MREO), a clinical-stage biopharma company, develops therapies for rare diseases and oncology. Its pipeline spans partnered and wholly owned programs across bone, respiratory, and reproductive indications.

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