Mereo BioPharma Group plc reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, focused on developing therapeutics for rare diseases, reported no revenue for the three and nine months ended September 30, 2024, a decline from $9,000 in the same period of 2023, which included a one-time milestone payment from Ultragenyx for its product Setrusumab.
The net loss for the three months ended September 30, 2024, was $15,001,000, compared to a loss of $6,531,000 in the prior year, reflecting an increase in operational losses. For the nine-month period, the net loss rose to $36,207,000 from $20,357,000 in 2023. The loss per share for the three months was $(0.02), up from $(0.01) in 2023, while for the nine months, it increased to $(0.05) from $(0.03).
Operating expenses for the third quarter included research and development (R&D) costs of $3,170,000, down 12% from $3,594,000 in 2023. The decrease was attributed to reduced expenses for the Etigilimab program, offset by increased costs for Setrusumab and Alvelestat. General and administrative expenses rose by 9% to $6,200,000, primarily due to pre-commercial activities for Setrusumab in Europe.
The company’s cash and cash equivalents increased to $80,522,000 as of September 30, 2024, up from $57,421,000 at the end of 2023. This increase was bolstered by proceeds from an underwritten registered direct offering in June 2024, which raised $47,000,000. The total current assets also rose to $86,723,000 from $63,760,000 in the previous period.
Mereo's total shareholders’ equity increased to $72,536,000 as of September 30, 2024, compared to $50,537,000 at the end of 2023. The company continues to rely on external funding sources, including public equity and collaboration agreements, to support its operations and development activities.
The company anticipates ongoing losses and will require additional funding to achieve its business objectives, including the commercialization of its product candidates. Mereo has committed to significant future payments under its agreements with AstraZeneca and Novartis, which are contingent on product development and sales milestones.
About Mereo BioPharma Group plc
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