UK-based Mereo BioPharma Group raised $119m from blue-chip institutional investors Woodford Investment Management and Invesco Perpetual, and acquired a development-stage mAb, kinase inhibitor, and aromatase inhibitor from Novartis.
Novartis holds an equity stake in the new company and said it will make a cash investment in Mereo in future financings.
Mereo
The company plans to acquire and develop innovative medicines, “entering into partnering deals at key value inflection points or, for selected opportunities, commercialising products itself.”
Mereo has a strategic partnership with CRO Icon, “structured to enable Mereo to expand its product portfolio without the addition of significant internal resources,” said the company.
Mereo has three drug candidates. BPS-804, a MaB for the orphan disease Osteogenesis Imperfecta (Brittle Bone Syndrome) is being developed to improve bone density and reduce fractures.
BCT-197 for acute exacerbations of Chronic Obstructive Pulmonary Disease is an oral p38 MAP kinase inhibitor.
BGS-649 is an oral aromatase inhibitor for treatment of hypogonadotrophic hypogonadism (HH), with the aim of normalising testosterone levels.
Mereo’s CEO is Denise Scots-Knight, formerly managing partner of healthcare venture capital firm Phase4 Partners. The company is chaired by Ablynx, Vernalis and Consort Medical Chairman Peter Fellner. Richard Bungay serves as CFO and COO, alongside Charles Sermon as General Counsel, Alastair MacKinnon as Chief Medical Officer, and John Richard as Head of Corporate Development.