BTIG analyst Julian Harrison reiterated a Buy rating and $1.00 price target on Mereo BipPharma Group (NASDAQ: MREO)

The analyst commented, "We view it highly relevant that the FDA endorsed bone mineral density (BMD) as an approvable surrogate endpoint in osteoporosis just days before topline results were shared from the ORBIT and COSMIC trials in December 2025. While fracture benefits were not statistically significant, setrusumab led to significant BMD improvements in both trials. If the FDA indicates in the future willingness to accept BMD as a surrogate endpoint for osteogenesis imperfecta (OI), we would view it as a significant value-creating event for MREO shares. Interestingly, setrusumab's largest BMD increases were seen in the lumbar spine and were associated with reduced vertebral fractures + pain. Timing of next steps have not been formally announced yet, although MREO's partner Ultragenyx (RARE, Not Rated) recently indicated a sense of urgency to conclude the additional analyses required before reengaging regulators. On alvelestat in alpha 1 anti-trypsin deficiency (AATD), activities to support Phase 3 initiation and potential partnering are ongoing, including a plan for a potential Phase 2b trial in bronchiectasis (neutrophil elastase is downstream of DPP1) to broaden the scope of the partnering process. On vantictumab (anti-FZD receptor mAb), development in autosomal dominant osteopetrosis type 2 (ADO2) is expected to continue as planned, with a Phase 2 trial expected to be initiated in 2H26. As a reminder, MREO granted ashibio (Private) the rights to develop and commercialize vantictumab in ADO2 in the US and rest of the world, while MREO retained European commercial rights. MREO ended 2025 with $41.0M in cash and equivalents, which mgmt is guiding as sufficient to support operations into mid-2027."

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Shares of Mereo BipPharma Group closed at $0.35 yesterday.