JPMorgan analyst Priyanka Grover downgraded Mereo BipPharma Group (NASDAQ: MREO) from Overweight to Neutral.

The analyst comments: "We are moving to a Neutral rating (prior Overweight) on MREO shares and withdrawing our December 2026 price target (prior PT of $8) due to the uncertainty of the regulatory process for the setrusumab program.

The phase 3 ORBIT and COSMIC trials of setrusumab in osteogenesis imperfecta (OI) missed their primary endpoints of annualized fracture rate (AFR). As a reminder, in ORBIT, setrusumab AFR was 0.71 compared to placebo AFR of 0.55 (p=0.305), and in COSMIC, setrusumab AFR was 0.91 compared to bisphosphonates AFR of 1.15 (p=0.338).

We maintain that the bone mineral density and pain data from the phase 3 ORBIT / COSMIC trials are supportive, especially in younger / pediatric patients... Setrusumab achieved statistically significant increases in both trials in bone mineral density (BMD) at 12 months (ORBIT p<0.0001, COSMIC p=0.0116). In COSMIC, setrusumab showed 59% fewer vertebral fractures of all types (p=0.081). The ORBIT trial also hit on 2 pain scores – the Patient Global Impression Scale of Severity (PGIS) and Pain / Comfort."

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Shares of Mereo BipPharma Group closed at $0.34 yesterday.