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On Wednesday, Cantor Fitzgerald analysts highlighted key insights from a recent webinar with the Osteogenesis Imperfecta Foundation (OIF) that could impact Ultragenyx (NASDAQ:RARE) and Mereo Biopharma. The discussion, led by OIF CEO Tracy Hart, focused on the progress of setrusumab, an anti-sclerostin monoclonal antibody (MAb) treatment currently in Phase 3 trials, which is jointly developed by the two companies. According to InvestingPro data, Mereo maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 6.1x.
The analysts noted the significance of the webinar, emphasizing the high conviction in the mechanism and data observed so far for setrusumab. They pointed out that the treatment, if approved, could be a significant addition for the OI community. The OIF, which has a network of around 3,000 patients in its registry, has expressed interest in participating in research, with the foundation’s mailing list comprising roughly 10-15,000 individuals.
The second interim analysis for setrusumab, specifically assessing its overwhelming efficacy, is anticipated to occur in mid-2025. This milestone is crucial as it could potentially expedite the treatment’s path to approval if the data is positive.
Both Ultragenyx and Mereo Biopharma stocks remain top picks for Cantor Fitzgerald, with the firm maintaining a positive outlook on their performance. The analyst’s statement following the call underscores the potential for setrusumab to provide a welcomed treatment option for patients with Osteogenesis Imperfecta, a group that has shown a keen interest in new research and therapies. InvestingPro analysts project sales growth for Mereo in the current year, with analyst price targets ranging from $6.41 to $10.68, suggesting significant upside potential from current levels.Get exclusive access to more detailed analysis and 8 additional ProTips for Mereo Biopharma through InvestingPro, including comprehensive Fair Value analysis and financial health metrics. The platform’s Pro Research Report provides deep-dive analysis of what really matters for informed investment decisions.
The collaboration between Ultragenyx and Mereo Biopharma on setrusumab represents a concerted effort to address the needs of the OI community. As the Phase 3 trial continues, stakeholders and investors are closely monitoring the developments, which could lead to a breakthrough therapy for those affected by this rare genetic disorder. With Mereo’s next earnings report due on March 26, investors can access detailed financial analysis and real-time updates through InvestingPro’s comprehensive research tools.
In other recent news, Mereo BioPharma Group maintained its Overweight rating and a $7.00 price target from Cantor Fitzgerald. The analysts at Cantor Fitzgerald highlighted the potential of Mereo BioPharma’s drug, focusing on its effectiveness in reducing fractures that typically result from falls or accidents. The company’s management expressed confidence in the ongoing IA2 trial, emphasizing the drug’s potential to deliver significant health benefits. Even if the trial does not meet its primary endpoint, the analysts noted that a 30-35% reduction in fractures could still be considered clinically meaningful. This reduction percentage is significant according to healthcare professionals. Additionally, the drug would need to show benefits on Patient-Reported Outcomes and other measures. Mereo BioPharma’s management is optimistic about the drug’s impact, based on its observed performance in clinical settings. Cantor Fitzgerald’s reaffirmation of the $7.00 price target underscores the perceived value of the drug and its potential to meet clinical expectations.
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