Mereo BioPharma Group plc (MREO): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the core engine of Mereo BioPharma Group plc, and frankly, it's a classic rare disease biotech model: partner-driven development where they smartly retain the high-value European commercial rights. As of late 2025, this strategy is playing out with Ultragenyx on setrusumab, while they push alvelestat toward Phase 3 readiness. The financial reality is a lean operation managing a burn rate, evidenced by the $34.53 million net loss for the nine months ended September 30, 2025, balanced against $48.7 million in cash on hand at that date. This canvas distills exactly how Mereo BioPharma Group plc is structuring its key activities and partnerships to bridge that gap into potential future royalty streams and direct EU sales. Dive in below to see the full nine-block breakdown.

Mereo BioPharma Group plc (MREO) - Canvas Business Model: Key Partnerships

You're looking at how Mereo BioPharma Group plc structures its development and commercial reach through external players. It's a classic biotech model: partner out the high-cost, late-stage execution and retain key commercial territories where possible. Here's the breakdown of the major collaborations as of the third quarter of 2025.

The partnership with Ultragenyx Pharmaceutical, Inc. for setrusumab is central. This collaboration covers global development for the Osteogenesis Imperfecta (OI) indication. The Phase 3 Orbit and Cosmic studies, led by Ultragenyx, are on track for data readout around the end of 2025.

The financial structure with Ultragenyx is significant. Mereo BioPharma Group plc is eligible for potential additional milestone payments of up to $245 million. Critically, Mereo BioPharma Group plc has retained the commercial rights for the EU and UK, while paying Ultragenyx royalties on sales in those specific territories.

The deal for leflutrozole with ReproNovo SA, which started in December 2023, shifts development and commercialization responsibility. Mereo BioPharma Group plc received an upfront payment, though the exact figure isn't public, and stands to gain up to $64.25 million in future milestones. Royalties are structured as tiered mid-single digit percentages on global annual net sales.

For vantictumab, the agreement with āshibio, Inc., announced in August 2025, sees āshibio funding the global development program. Mereo BioPharma Group plc smartly kept the European commercial rights, while āshibio, Inc. handles the U.S. and rest of the world commercialization.

Navicixizumab, labeled as a non-core oncology asset, is partnered with Feng Biosciences, Inc. This is a standard global licensing agreement structure involving milestone payments and royalties.

Here's a summary of the key financial and structural elements of these major alliances:

Regarding the execution of large-scale studies, the Phase 3 trial work for setrusumab is managed by the partner, Ultragenyx, which implies the use of Clinical Research Organizations (CROs) for site management and data collection, though specific CRO contracts or costs are not detailed in the public financial statements.

The cash position reflects the reliance on these partnerships to fund operations. Mereo BioPharma Group plc reported cash and cash equivalents of $48.7 million as of September 30, 2025, down from $62.5 million on March 31, 2025. This balance is expected to support operations into 2027. Total ordinary shares issued stood at 795,484,404 as of September 30, 2025.

The commercial rights retention strategy is a key feature, especially for setrusumab and vantictumab. You see this play out in the retained territories:

• Ultragenyx territories: Global, excluding EU and UK.
• Vantictumab: U.S. and rest of the world.

The ReproNovo SA deal is different, covering global sales, but with royalties flowing back to Mereo BioPharma Group plc.

Mereo BioPharma Group plc (MREO) - Canvas Business Model: Key Activities

You're managing a clinical-stage company where the next few months are absolutely critical for value realization. For Mereo BioPharma Group plc, the Key Activities in late 2025 are laser-focused on data readout, deal-making, and maintaining fiscal discipline.

Managing the Phase 3 setrusumab trials (Orbit and Cosmic) with Ultragenyx

The core activity here is seeing the setrusumab program through to its final data analysis for Osteogenesis Imperfecta (OI). The Data Monitoring Committee reviewed interim data from the Orbit study and recommended continuing to completion, not stopping early. The final analyses for both the Orbit and Cosmic Phase 3 studies are on track to occur around the end of 2025. The Orbit study, evaluating setrusumab against placebo in patients aged 5 to 25 years, has enrolled 159 patients across 45 sites in 11 countries. The parallel Cosmic study, which compares setrusumab against intravenous bisphosphonate therapy in younger pediatric patients aged 2 to <7 years, involves 69 patients at 21 sites in 7 countries. This activity directly drives the potential for future revenue, as the partnership with Ultragenyx includes potential additional milestone payments up to $245 million plus royalties in Ultragenyx territories. Research and development (R&D) expenses specifically for setrusumab increased by $0.9 million in the third quarter of 2025 compared to the third quarter of 2024. So, the day-to-day is about site management, data lock, and preparing for that final statistical readout.

Advancing partnering discussions for alvelestat, now Phase 3 ready

While setrusumab is in the final stages, advancing alvelestat for Alpha-1 Antitrypsin Deficiency-associated Lung Disease (AATD-LD) is the next major value driver. Mereo BioPharma Group plc is continuing to advance partnering discussions for this asset. Alvelestat has achieved key regulatory milestones, including receiving Orphan Designation from the European Commission in January 2025. The activity involves refining the plan for a single, global, Phase 3 study, which is designed to support full marketing approvals in both the US and EU. The company is looking for a partner to help fund this pivotal trial, as current cash guidance does not include any payments associated with a potential alvelestat partnership.

Pre-commercial readiness activities for setrusumab in the EU/UK territory

Mereo BioPharma Group plc has strategically retained the EU and UK commercial rights for setrusumab, making pre-commercial readiness a vital ongoing activity. The company continues to invest in these activities to ensure they are well-positioned for a potential launch in these European territories, pending regulatory approvals following the data readouts. This involves building out the necessary infrastructure and market access strategy for their retained area.

Intellectual property defense and expansion (patents for setrusumab expire up to 2042)

Protecting the exclusivity window for key assets is a constant background activity. For setrusumab, patents emanating from the jointly owned patent family relating to dosing regimens are expected to expire in 2042, not accounting for any Patent Term Extension (PTE). This long runway is a key resource. The company is actively managing its portfolio of patents and patent applications covering setrusumab, acumapimod, and leflutrozole, acquired from Novartis, alongside the alvelestat license from AstraZeneca.

General and administrative oversight, keeping G&A expenses tight

Effective oversight means managing the burn rate while advancing late-stage trials. You can see the focus on keeping General and Administrative (G&A) expenses tight in the recent financials. The company's cash balance of $48.7 million as of September 30, 2025, is expected to support operations into 2027 based on current plans, which explicitly excludes partnership payments.

Here's a quick look at the G&A trend for the three months ended September 30, 2025:

The decrease in Q2 2025 was partly due to a $1.9 million reduction in expenses recognized from their depository reimbursing certain ADR program costs. The total ordinary shares issued as of September 30, 2025, stood at 795,484,404.

The Key Activities supporting the business model can be summarized by these operational and financial metrics:

• Phase 3 Setrusumab Final Analysis expected around year-end 2025.
• Orbit Study enrolled 159 patients across 45 sites.
• Cosmic Study enrolled 69 patients across 21 sites.
• Potential Setrusumab milestones with Ultragenyx up to $245 million.
• Alvelestat achieved European Orphan Designation in January 2025.
• Setrusumab patent family expiration projected for 2042.
• Cash runway guidance extends into 2027.

Finance: draft 13-week cash view by Friday.

Mereo BioPharma Group plc (MREO) - Canvas Business Model: Key Resources

You're looking at the core assets Mereo BioPharma Group plc uses to drive its rare disease business forward right now. These aren't just ideas; they are tangible financial figures and late-stage clinical programs. Honestly, the cash position is the immediate fuel for everything else.

Financial Capital on Hand:

The most immediate resource is the balance sheet strength as of the last reported period. Mereo BioPharma Group plc held $48.7 million in cash and cash equivalents at the close of business on September 30, 2025. This figure compares to $69.8 million at the end of 2024. The company projects this cash, absent any partnership payments, is sufficient to fund committed clinical trials and operating expenses into 2027.

Late-Stage Product Pipeline:

The pipeline represents the primary value driver, centered on assets in advanced clinical stages for serious rare diseases. You need to track these specific programs closely:

• Setrusumab (UX143) for Osteogenesis Imperfecta (OI), with Phase 3 data expected around the end of 2025.
• Alvelestat for Alpha-1 Antitrypsin Deficiency-associated Lung Disease (AATD-LD), which is now Phase 3 ready.
• Vantictumab for Autosomal Dominant Osteopetrosis Type 2 (ADO2), with promising preclinical data presented in 2025.

Regulatory Exclusivity and Designations:

Regulatory status is a critical resource that locks in market potential and speeds development. Setrusumab has secured significant regulatory advantages:

• Orphan Drug Designation in both the USA and the EU for setrusumab.
• Breakthrough Therapy Designation granted by the FDA in October 2024 for setrusumab.
• Alvelestat also received a positive opinion from the EMA for European Orphan Designation in early 2025.

Contractual Value and Future Payments:

Future, non-guaranteed income streams from partnerships are a key resource, providing potential upside without immediate development cost. Here's a breakdown of the potential financial upside from existing agreements:

Human Capital and Intellectual Property:

The team's deep knowledge base is essential for navigating complex rare disease development. This expertise is focused on the underlying biology of rare bone and lung conditions. For instance, R&D expenses for setrusumab and alvelestat increased in Q3 2025, reflecting continued investment in these specialized areas. The company's structure also includes retaining European commercial rights for setrusumab and for vantictumab through the partnership with āshibio.

Mereo BioPharma Group plc (MREO) - Canvas Business Model: Value Propositions

You're looking at the core value Mereo BioPharma Group plc offers to its customers-the patients and healthcare systems-driven by its specialized pipeline. The value proposition centers on delivering first-in-class or best-in-class therapies for conditions where the unmet medical need is significant, which is typical for rare and ultra-rare diseases.

The company's value is intrinsically tied to the clinical success and regulatory status of its lead assets, setrusumab and alvelestat. For instance, the potential market opportunity for setrusumab is substantial, with the global osteogenesis imperfecta treatment market projected to reach $873.81 million by 2031.

Mereo BioPharma Group plc's strategic focus is clearly on developing innovative therapeutics for rare and ultra-rare diseases. This focus allows for premium pricing and specialized market access, which is supported by regulatory advantages already secured for its pipeline:

• Setrusumab has Orphan designation from the European Commission (EC) and the FDA.
• Setrusumab also holds PRIME designation from the EMA and Breakthrough Therapy designation and rare pediatric disease designation from the FDA.
• Alvelestat has received European Commission Orphan Designation for Alpha-1 Antitrypsin Deficiency-associated Lung Disease (AATD-LD), in addition to US FDA Orphan Drug and Fast Track designations.

The financial commitment to these programs reflects their importance; Research and development (R&D) expenses specifically for setrusumab increased by $0.9 million in the three months ended September 30, 2025, compared to the same period in 2024, showing continued investment ahead of expected data readouts around the end of 2025.

The structure of Mereo BioPharma Group plc's partnerships is designed to maximize value capture, which is a core part of the value proposition to shareholders. They are not just developing drugs; they are structuring deals to retain high-value territories.

Here's a quick look at the key pipeline assets driving this value:

The retention of European commercial rights for key assets allows Mereo BioPharma Group plc to capture a larger share of the potential revenue stream in these markets, which is a direct enhancement of the value proposition over a fully out-licensed model. Specifically, Mereo has retained EU and UK commercial rights for setrusumab through its partnership with Ultragenyx. Also, the company retained European commercial rights for vantictumab in its deal with āshibio.

This strategy is supported by a financial runway that suggests stability through key milestones; as of September 30, 2025, the cash balance was $48.7 million, which management guided would fund operations into 2027. This cash runway is crucial as it allows the company to execute on its European commercial readiness activities for setrusumab without immediate external financing pressure, which is a value driver in itself. The net loss for Q3 2025 was $7.0 million, an improvement from the $15.0 million loss in Q3 2024.

The value proposition is also about being a partner of choice, evidenced by the existing relationships and the ability to structure deals that maintain upside, such as the retained rights. The company had 795,484,404 total ordinary shares issued as of September 30, 2025, meaning the value generated from these propositions is spread across a defined share base.

Mereo BioPharma Group plc (MREO) - Canvas Business Model: Customer Relationships

You're managing a portfolio where the relationship with external entities-partners, investors, and the medical community-is the engine driving value realization, especially when you're pre-revenue on core assets. For Mereo BioPharma Group plc (MREO), customer relationships center on maximizing the value of its pipeline through strategic alliances and transparent communication with the financial markets.

Strategic, Collaborative Management of Key Development Partners

The management of key development partners is crucial, as these relationships often carry the financial burden of late-stage development and commercialization outside Mereo BioPharma Group plc's core territories. The collaboration with Ultragenyx Pharmaceutical, Inc. on setrusumab (UX143) for osteogenesis imperfecta (OI) is a prime example. Ultragenyx leads the global development, which includes the Phase 3 Orbit study (patients aged 5 to 25 years) and the Phase 3 Cosmic study (pediatric patients aged 2 to <7 years), both progressing toward final analyses around the end of 2025. This partnership structure includes potential additional milestone payments to Mereo BioPharma Group plc of up to $245 million, plus royalties on Ultragenyx territories' commercial sales. Conversely, Mereo BioPharma Group plc retains the EU and UK commercial rights, for which it will pay Ultragenyx royalties on sales.

The focus on asset-centric deals continues to simplify the business focus. Mereo BioPharma Group plc announced an exclusive global license agreement in August 2025 with āshibio for vantictumab (investigated in autosomal dominant osteopetrosis type 2, ADO2), where Mereo retained the European commercial rights. Furthermore, the oncology asset navicixizumab is partnered with Feng Biosciences, Inc. under a global licensing agreement that includes milestone payments and royalties. Alvelestat, which is Phase 3 ready, remains a focus for ongoing partnering discussions.

Here's a look at the current partnership landscape for key assets:

Investor Relations Focused on Clinical Milestones and Cash Runway

Investor communication is tightly linked to the clinical timeline, particularly the setrusumab Phase 3 data readout expected around the end of 2025. The primary focus for financial stability is the cash runway. As of September 30, 2025, Mereo BioPharma Group plc reported cash and cash equivalents of $48.7 million. Management has consistently guided that this balance, based on current operational plans, is expected to fund committed clinical trials, operating expenses, and capital expenditure requirements into 2027. This guidance explicitly excludes any potential upfront payments from a partnership for alvelestat or business development activity related to non-core programs.

The burn rate is a key metric for this relationship. The cash balance has been decreasing from $69.8 million at the end of 2024 to $62.5 million at the end of Q1 2025, and then to $56.1 million at the end of Q2 2025, before settling at $48.7 million in Q3 2025. The cash burn in the last year (implied 2024) was reported as $33 million, which suggested a runway of around 20 months as of October 2025. For the third quarter of 2025, the company reported a net loss of $7.0 million, resulting in a loss per share (Non-GAAP) of $0.01, which was better than the analyst estimate of a $0.0248 loss per share. The total number of ordinary shares issued as of September 30, 2025, stood at 795,484,404, with 159,096,880 ADS equivalents.

Key financial communication points to investors include:

• Cash on hand as of September 30, 2025: $48.7 million.
• Projected funding for operations into 2027.
• Q3 2025 Net Loss: $7.0 million.
• Analyst sales estimate for Full Year 2025: $28.4 million.
• Total ordinary shares issued (Sept 30, 2025): 795,484,404.

Medical Affairs Engagement with European KOLs and Patient Groups

For the setrusumab program, where Mereo BioPharma Group plc holds the European commercial rights, the company is actively engaged in pre-commercial readiness. This involves direct engagement with regulatory and HTA (Health Technology Assessment) bodies in Europe. The company is also investing in real-world data collection efforts through the SATURN program to support a potential launch following regulatory approvals. The relationship with the medical community is framed as a collaborative effort, working 'Together with patient communities, healthcare professionals, partners and investors.' Alvelestat also received Orphan Designation from the European Commission in the first quarter of 2025.

Licensing Deals for Non-Core Assets to Simplify Focus and Reduce Burn

The strategy involves structuring deals for non-core assets to maintain focus on setrusumab and alvelestat while generating non-dilutive capital or future revenue streams. The recent deal for vantictumab with āshibio in August 2025 is a clear example of simplifying focus by retaining European rights while offloading U.S. and rest of world development/commercialization. The oncology asset navicixizumab is partnered with Feng Biosciences, Inc., which includes milestone payments and royalties. The company also has an exclusive global license agreement for leflutrozole with ReproNovo SA. The ongoing partnering discussions for alvelestat are critical, but any potential upfront payments are not factored into the 2027 cash runway guidance, meaning the current burn rate is managed independently of these potential transactions.

The company's asset focus as of late 2025 includes:

• Setrusumab (OI) - Partnered with Ultragenyx.
• Alvelestat (AATD-LD) - Phase 3 ready, partnering discussions ongoing.
• Vantictumab (ADO2) - Partnered with āshibio, EU rights retained.
• Etigilimab - Unpartnered oncology candidate.

Finance: draft 13-week cash view by Friday.

Mereo BioPharma Group plc (MREO) - Canvas Business Model: Channels

You're looking at how Mereo BioPharma Group plc gets its value proposition-developing rare disease treatments-to the end user or partner. For a clinical-stage company, the channels are heavily weighted toward partnerships and clinical infrastructure right now, but the EU/UK commercial path is definitely on the roadmap.

Partner-led Global Clinical Development and Regulatory Submissions

The primary channel for global development and regulatory execution for setrusumab (UX143) is the partnership with Ultragenyx Pharmaceutical, Inc. Under this arrangement, Ultragenyx leads and funds the global development plan, which includes Chemistry, Manufacturing, and Controls (CMC) activities that started in December 2020. Mereo BioPharma Group plc retains the commercial rights for Europe and the UK, while Ultragenyx holds the rights for the USA and the Rest of the World. This structure means clinical trial execution, like the Phase 3 Orbit and Cosmic studies, is managed by the partner. The final analyses for these pivotal setrusumab studies are on track to read out around the end of 2025. This partnership has already delivered financial flow to Mereo BioPharma Group plc; the upfront payment was $50 million, plus a $9 million milestone payment. Furthermore, there is potential for up to an additional $245 million in milestone payments, plus royalties on commercial sales in Ultragenyx territories. The increase in Research and Development (R&D) expenses for setrusumab in Q3 2025 was primarily driven by amounts due under the manufacturing and supply agreement with Ultragenyx. This collaboration is definitely the engine for global setrusumab progress.

• Ultragenyx leads and funds global development for setrusumab.
• Mereo BioPharma Group plc retains EU/UK commercial rights.
• Potential milestone payments to Mereo BioPharma Group plc: up to $245 million.
• Phase 3 final data expected around year-end 2025.

Direct Commercial Sales Force and Distribution Network in EU/UK (Future Channel)

For the territories where Mereo BioPharma Group plc has retained commercial rights-the EU and UK-the channel shifts from partnership to direct engagement, though this is a future state contingent on regulatory approval. Pre-commercial efforts are continuing in Europe, which is a key preparatory step for this channel. These activities include the ongoing SATURN program, which works with existing Osteogenesis Imperfecta (OI) datasets to build a better understanding of the natural history and the unmet medical need. This data is crucial to support the health economic model required for assessment by Regulatory and Health Technology Assessment (HTA) bodies and payors. The strategy is to build a small, targeted sales infrastructure to commercialize the product once approved in these select markets. It's a classic biotech pivot: from R&D focus to market access focus.

• Mereo BioPharma Group plc holds setrusumab commercial rights in EU/UK.
• Pre-commercial efforts include the SATURN program.
• Focus on generating data to support HTA and payor assessment.

Academic and Clinical Trial Sites for Patient Recruitment and Data Generation

The clinical trial sites serve as the essential channel for generating the data required for regulatory submissions and establishing efficacy. The Phase 3 Orbit study, which evaluates setrusumab in patients aged 5 to 25 years, has enrolled 159 patients across 45 sites in 11 countries. The parallel Cosmic study, for younger patients aged 2 to less than 7 years, also contributes to this data generation channel. Historically, prior R&D for setrusumab included four clinical trials conducted by Novartis involving 106 patients and healthy volunteers, plus a Phase 2b (ASTEROID) study in 112 adult patients. The Phase 2 portion of the Orbit study itself involved 24 pediatric and young adult patients. These sites are the physical touchpoints for the product's clinical journey.

Investor Presentations and Financial Reporting (NASDAQ: MREO)

The financial markets and investor community are a critical channel for capital formation and maintaining public listing status on NASDAQ. The company communicates through regular financial reporting and investor presentations. As of September 30, 2025, Mereo BioPharma Group plc reported cash and cash equivalents of $48.7 million, which management expects will support operations into 2027. This financial stability is key to sustaining the channels above. The total ordinary shares issued as of that date were 795,484,404, with 159,096,880 total ADS equivalents. The market capitalization as of November 2025 was reported around $288 million. The Q3 2025 results showed a net loss of $7.0 million, an improvement from the $15.0 million loss in Q3 2024, with R&D expenses at $4.3 million and General and Administrative expenses at $6.0 million for the quarter. These figures are the direct output of the company's operational channels.

Here's a quick look at the latest reported balance sheet snapshot:

Finance: draft 13-week cash view by Friday.

Mereo BioPharma Group plc (MREO) - Canvas Business Model: Customer Segments

You're looking at the distinct groups Mereo BioPharma Group plc targets with its rare disease assets as of late 2025. This is a focused approach, centered on patient populations where current treatment options are limited.

The primary patient segments are defined by the rare diseases targeted by their clinical-stage product candidates:

• Global patients with Osteogenesis Imperfecta (OI), a brittle bone disease, who are candidates for setrusumab.
• Patients suffering from Alpha-1 Antitrypsin Deficiency-associated Lung Disease (AATD-LD), the target for alvelestat.
• Patients with Autosomal Dominant Osteopetrosis Type 2 (ADO2) for vantictumab.

The fourth key customer segment involves external entities looking to acquire or partner on these late-stage assets:

• Large pharmaceutical and biotech companies seeking late-stage rare disease assets.

Here's a look at the estimated patient populations for the core indications, based on available data:

For the segment of large pharmaceutical and biotech companies, Mereo BioPharma Group plc's financial position and pipeline maturity define the attractiveness of a potential transaction. The company's cash position as of September 30, 2025, was $48.7 million, with guidance to fund operations into 2027. This runway supports execution through key milestones, such as the expected final analyses for the setrusumab Phase 3 studies around the end of 2025. The company is actively advancing partnering discussions for alvelestat. The total ordinary shares issued as of September 30, 2025, stood at 795,484,404. The net loss for the third quarter ended September 30, 2025, was $7.0 million.

The customer segment seeking vantictumab is defined by the rare bone disease ADO2. Mereo BioPharma Group plc retained European commercial rights in a partnership deal with āshibio for this asset, following promising preclinical data presented at the 2025 ASBMR Annual Meeting.

The OI patient segment is being addressed through the setrusumab program, partnered with Ultragenyx, with final analyses for the Phase 3 Orbit and Cosmic studies expected around the end of 2025. The statistical threshold for success in the Orbit study was set at p<0.039.

For AATD-LD patients, alvelestat is being advanced, with the company finalizing start-up activities for a Phase 3 pivotal study, which is key to ongoing partnering processes. Alvelestat has Orphan Designation from both the EMA and the FDA.

Mereo BioPharma Group plc (MREO) - Canvas Business Model: Cost Structure

You're looking at the core expenditures driving Mereo BioPharma Group plc's operations as of late 2025. For a clinical-stage company, the cost structure is heavily weighted toward advancing its pipeline, meaning R&D is the dominant factor.

Heavy investment in Research and Development (R&D) for clinical trials represents a major cash outflow. For the three months ended September 30, 2025, total Research and Development expenses were reported at $4.3 million. This R&D spend is concentrated on key programs.

The cost structure includes significant spending tied to the setrusumab program, which is in Phase 3 trials. The R&D expenses for setrusumab specifically increased by $0.9 million in the third quarter of 2025 compared to the prior year period. Also contributing to R&D was alvelestat, with an increase of $0.5 million in Q3 2025 R&D expenses.

Manufacturing and supply costs for setrusumab, paid to Ultragenyx, are embedded within the R&D figures. The increase in R&D expenses for setrusumab during the third quarter of 2025 was primarily driven by amounts due under the manufacturing and supply agreement with the partner, Ultragenyx.

General and Administrative (G&A) expenses showed some cost control in the quarter. For the third quarter of 2025, General and Administrative expenses were $6.0 million. This was a decrease of $0.2 million compared to the third quarter of 2024, which the company attributed primarily to lower professional fees.

Regarding personnel costs for a lean team focused on R&D and business development, while the structure implies a focus on keeping headcount low, the specific dollar amount for personnel costs is not broken out separately from G&A or R&D in the provided data. However, the overall operating discipline is evident in the net loss figures.

The cumulative effect of these costs is reflected in the bottom line for the longer reporting period. The Net loss for the nine months ended September 30, 2025, was $34.53 million.

Here's a quick look at the key cost and loss metrics for the period:

The company's cash position as of September 30, 2025, was $48.7 million, which management expected to support operations into 2027.

You can see the quarterly loss trajectory, which helps frame the burn rate:

• Net Loss for Q3 2025 was $7.0 million.
• Net Loss for Q3 2024 was $15.0 million.
• The Q3 2025 loss benefited from a foreign currency transaction gain of $1.9 million.

Mereo BioPharma Group plc (MREO) - Canvas Business Model: Revenue Streams

You're looking at how Mereo BioPharma Group plc brings in cash right now, late in 2025, which is heavily weighted toward development achievements rather than product sales, given the pipeline stage. Honestly, the revenue quality right now is non-recurring, which is typical for a clinical-stage company awaiting key data readouts.

The core of the current revenue recognition comes from the deals already struck, particularly the one with Ultragenyx for setrusumab, and the smaller licensing arrangements for non-core assets.

Here's a quick look at the financial components driving the top line:

You should note that for the third quarter ended September 30, 2025, Mereo BioPharma reported $0.0 million in revenue, as the Q2 figure was driven by that one-time milestone event.

The structure of the setrusumab partnership dictates how future cash flows will be split. It's important to track these potential payments as they are significant drivers for the company's non-dilutive funding potential.

The revenue streams are clearly segmented by asset and partner responsibility:

• Milestone payments from Ultragenyx for setrusumab development progress.
• Royalties on future commercial sales of setrusumab in Ultragenyx territories.
• Licensing revenue from non-core assets, exemplified by the $0.5 million milestone in Q2 2025 from leflutrozole.
• Future direct product sales in the EU/UK for setrusumab post-approval, where Mereo BioPharma Group plc has retained commercial rights.

To be fair, analyst models suggest that if the pipeline progresses as hoped, the full year 2025 sales estimate is $28.4 million, which would represent a major shift from the current run rate.

Finance: draft 13-week cash view by Friday.