13 Best Biotech Penny Stocks to Buy According to Hedge Funds

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7. Mereo BioPharma Group (NASDAQ:MREO)

Share Price as of April 14: $1.95

Number of Hedge Fund Holders: 30

Mereo BioPharma Group (NASDAQ:MREO) develops and commercializes therapeutics for the treatment of oncology and rare diseases. It develops Etigilimab (MPH-313), which is an antibody T-cell immunoreceptor with Ig and ITIM domains. The company is also developing Navicixizumab (OMP-305B83), Acumapimod (BCT-197), a p38 MAP kinase inhibitor, and Leflutrozole (BGS-649).

Mereo is also focused on setrusumab (UX143), which is an investigational and fully human monoclonal antibody that is being developed for osteogenesis imperfecta (OI). Its action mechanism involves inhibiting sclerostin, which is a protein that negatively regulates bone formation. The intended effect of setrusumab is to increase bone density and reduce fractures in patients with OI.

Mereo’s partner Ultragenyx is conducting two Phase 3 studies: one is Orbit in patients aged 5-25, with a second interim analysis in mid-2025 and a potential final analysis in Q4 2025. The other is Cosmic in patients aged 2 to under 7. Positive results could lead to US and EU regulatory filings. The partnership includes ~$245 million in potential milestone payments and royalties to Mereo on Ultragenyx’s sales. Mereo BioPharma Group (NASDAQ:MREO) is preparing for a potential European launch of setrusumab.

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