BIOTECH MARKET RESEARCH $MREO | Ep. 704

Mereo BioPharma

Mereo BioPharma (MREO) is approaching a pivotal inflection point with the upcoming second interim analysis from the Phase 3 ASTEROID trial of setrusumab, its monoclonal antibody targeting sclerostin for osteogenesis imperfecta (OI). This readout will assess fracture reduction, a critical endpoint that could validate setrusumab as the first disease-modifying therapy for this brittle bone disorder. Market sentiment reflects cautious optimism, with volatility elevated (+/- 60%) as the date nears, underscoring the high stakes of this pivotal trial.

Every Monday we are out with public biotech research, profiling biotech companies with near term catalysts. This will focus primarily on the major market moving biotech events such as data readouts from the major scientific conferences as well as potential regulatory approvals.

We will not offer specific trading advice (and we do not hold any publicly traded biotech equity), but rather flag emerging events that will likely materially drive stock prices (sometimes +/-100% in either direction).

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HOW TO PLAY BIOTECH APPROVAL/DATA READOUTS ANNOUNCEMENTS

While biotech equities will move on news of announcement, often if there is high conviction in a positive read, a large run up ahead of the news will occur and the actual event turns into a sell the news event. Sometimes, investors wait for the actual event to make a long/short decision. And obviously if the news is disappointing (more often than not) the stock will tank.

This is not financial advice so you will have to make your own call on how to best play these events. Our aim is simply to flag catalysts with high projected volatility.

🚨 ALERT: Pivotal Ph 3 Interim Readout for Setrusumab in Osteogenesis Imperfecta

📅 DATE: Second interim analysis expected mid-2025

📈 IMPLIED VOLATILITY: +/- 60%

BACKGROUND: