Mereo BioPharma — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $0.8 million, compared to $0 in the same period in 2025.
• Research and development (R&D) expenses decreased to $2.1 million in Q3 2026 from $4.3 million in Q3 2025, a reduction of $2.2 million.
• General and administrative (G&A) expenses decreased to $4.9 million in Q3 2026 from $6.0 million in Q3 2025, a reduction of $1.1 million.
• Net loss for Q3 2026 was $5.9 million, compared to $7.0 million in Q3 2025.
• Cash and cash equivalents totaled $26.1 million as of September 30, 2026, down from $41.0 million as of December 31, 2025.
• Total ordinary shares issued were 798,454,864 as of September 30, 2026.
• Accumulated deficit increased to $(520.4) million as of September 30, 2026, from $(501.0) million as of December 31, 2025.

Guidance and Future Outlook:

• Current cash position is expected to fund operations into late 2027, exclusive of potential $40 million in upfront and R&D payments from the alvelestat option exercise by Sentynl and other milestone payments.
• Mereo aims to initiate the Phase 3 study for alvelestat in early 2027.
• An update on alvelestat Phase 3 trial design is expected before the end of the year following ongoing FDA interactions.
• āshibio intends to initiate clinical trials for vantictumab in ADO2 patients in the first half of 2028.
• Management anticipates a "transformational 2027" for the company based on progress in core programs.

Business Segments and Product Lines:

• Setrusumab (OI): Collaborating with Ultragenyx to determine necessary data for regulatory submission in pediatric OI patients. Post-hoc fracture analyses presented at the 2026 ASBMR Annual Meeting showed meaningful benefit in patients with at least 3 fractures in the prior 2 years. R&D expenses for setrusumab decreased by $1.6 million due to delays in manufacturing and medical affairs activities in Europe.
• Alvelestat (AATD-LD): Sentynl Therapeutics holds an option to acquire U.S. commercial and global manufacturing rights. If exercised, Mereo would receive $40 million in upfront and R&D payments, with potential for up to $435 million in regulatory and commercial milestones plus double-digit tiered royalties. Mereo retains rest-of-world rights and will lead global Phase 3 development.
• Vantictumab (ADO2): Partner āshibio reported data showing low doses (0.5-5mg/kg) increased osteoclast activity without inhibiting osteoblast activity. āshibio is funding and leading global development.
• Other Programs: Mereo holds exclusive global license agreements with ReproNovo SA for leflutrozole (male infertility) and Feng Biosciences for navicixizumab (late-stage ovarian cancer).

Other Key Points:

• The alvelestat option and license agreement with Sentynl Therapeutics (a subsidiary of Zydus Lifesciences Limited) was signed in August 2026.
• Ultragenyx is funding and leading global development for setrusumab, while Mereo retains EU and UK commercial rights.
• āshibio is funding and leading global development for vantictumab, while Mereo retains EU and UK commercial rights.
• The company reported a lower net foreign currency translation gain in Q3 2026 compared to the prior year, which partially offset expense reductions in the net loss calculation.
• The company is a clinical-stage biopharmaceutical focused on rare diseases with three late-stage product candidates.