How Did Mereo BioPharma Perform In The FY18?

Mereo BioPharma Group Plc (MPH) was formed in the year 2015. It is a speciality biopharmaceutical company which develops novel medicines for the treatment of rare and speciality diseases. The company's pipeline products include BPS-804, which is used for the treatment of brittle bone syndrome; and BCT-197, an orally active p38 MAP kinase inhibitor developed for acute exacerbations of chronic obstructive pulmonary disease.

Financial Highlights – FY2018

Operating loss for FY18 stood at £35.20 mn as compared to the operating loss of £45.30 mn in FY17 and before tax loss stood at £37.30 mn versus the loss of £46.95 mn in FY 17. The reported basic and diluted loss per share stood at £0.45 versus loss of £0.56 in FY17. Group’s interest-bearing loans and borrowing declined by 22% to £14.64 mn from £18.81 mn in FY17.

The group’s reported net cash flow on account of operating activities was an outflow of £23.13 mn as compared with the outflow £32.14 mn during the previous financial year. Net cash generated from investing activities stood at £0.25 mn, primarily on account of interest earned of £0.28 mn, against an outflow of £3.74 mn reported last year. Net cash flow on account of financing activities was an outflow £2.07 mn as compared with the inflow of £33.74 mn in FY17. The net change in cash and cash equivalents for FY18 was an outflow of £24.95 mn as compared with the outflow of £2.14 mn during FY17.

During the past financial year, the drug maker has patented 112 adults in Phase2 dose-ranging study with the initial data expected in the second quarter of FY19.

Chairman & CEO’s statement

Our strategy in line with the aim to create a portfolio of rare disease products acquired from large pharmaceutical companies and to develop these products through an approval from the concerned regulator and subsequent commercialisation.

Stock Performance – 1 Year

Daily price chart (as on May 01, 2019), before the market close. (Source: Thomson Reuters)

At the time of writing (as on May 01, 2019, at 08:30 AM GMT), shares of MPH were quoting at GBX 112.5 and declined by 2.50 points or 2.22% against the previous day close. During the past one-year, shares have registered a 52w high of GBX 325 and a 52w low of GBX 105.

At the current market price, as quoted in the price chart, shares were trading considerably below the 30-day, 60-day and 200-day simple moving average. On a yearly basis, the stock has delivered a negative return of 65.38%.

The outstanding market capitalisation of the company stood at £ 103.23 mn, which ranks it among the small-cap categories listed on the London Stock Exchange.