Mereo BioPharma reports Q2 2026 results, alvelestat licensing deal with Sentynl
Mereo said cash of $30.1 million should fund operations into late-2027 as it advances option deals for alvelestat and continues regulatory talks on setrusumab.
Mereo BioPharma Group plc announced financial results for the quarter ended June 30, 2026, along with several pipeline updates, on August 11, 2026.
On setrusumab, the company said the Orbit and Cosmic Phase 3 studies did not reach statistical significance on the primary endpoint of annualized clinical fracture rate, but both trials showed high statistical significance on the key secondary endpoint of bone mineral density improvement, along with reductions in vertebral fractures and improvements in patient-reported outcomes, with the PRO results reaching significance in the Orbit study.1 Mereo and partner Ultragenyx Pharmaceutical are in discussions with regulators in the U.S. and U.K. on a potential path forward, and the FDA has indicated openness to alternative approaches to fracture analysis, with further conversations needed on what additional clinical data would be required to support a possible BLA.1 The company said it expects an update on this path by the end of 2026.
For alvelestat, Mereo entered an option and license agreement with Sentynl Therapeutics, a subsidiary of Zydus Lifesciences Limited, under which Sentynl has the right to acquire a license covering U.S. commercial rights and global manufacturing rights to alvelestat for AATD-LD.1 Mereo is set to receive a non-refundable option fee, and if the option is exercised, would be eligible for $40 million in upfront and R&D payments plus up to $435 million in regulatory and commercial milestones, along with double-digit tiered royalties on U.S. net sales.1 If Sentynl exercises the option, the deal would fund a global Phase 3 study that could start in early 2027.1
On vantictumab, partner āshibio, Inc. continues working toward starting a Phase 2 trial in autosomal dominant osteopetrosis Type 2.1
Financially, Mereo held $30.1 million in cash and cash equivalents as of June 30, 2026, versus $41.0 million at year-end 2025, which the company said should fund committed trials and operating costs into late 2027.1
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