Mereo Biopharma Group (MREO) investor relations material

Executive summary

• Full year 2025 results reflect continued focus on rare disease therapeutics, with ongoing data analyses from Phase 3 studies of setrusumab in osteogenesis imperfecta and progress in partnering discussions for alvelestat and vantictumab.

• Cash position of $41.0 million as of December 31, 2025, expected to fund operations into mid-2027 following cost reductions and delayed manufacturing investments.

Financial highlights

• Net loss for 2025 was $41.9 million, compared to $43.3 million in 2024, primarily due to an operating loss of $40.1 million and a foreign currency translation loss of $6.3 million, partially offset by $2.2 million in interest income and $1.9 million in R&D tax credits.

• R&D expenses decreased by $3.2 million year-over-year to $17.8 million, mainly due to lower alvelestat and etigilimab costs, offset by higher setrusumab expenses.

• General and administrative expenses fell by $3.4 million to $23.0 million, driven by lower bonus accruals and reduced professional fees.

• Cash and cash equivalents declined to $41.0 million from $69.8 million at year-end 2024.

Outlook and guidance

• Cash runway projected into mid-2027, not including potential upfront payments from alvelestat partnerships or non-core business development.

• Ongoing regulatory engagement for setrusumab based on additional data analyses; Phase 3 trial for alvelestat in AATD-LD planned, with global regulatory alignment on endpoints.