Date: 2015-07-29
Type of information: Series A financing round
Company: Mereo BioPharma (UK)
Investors: Woodford Investment Management (UK) Invesco Perpetual (UK) Novartis (Switzerland)
Amount: $118 million (£76.5 million - € 106.6 million)
Funding type: series A financing round
Planned used:
- Mereo BioPharma is a new UK-based speciality biopharmaceutical company. The company intends to optimise the commercial value of programmes by entering into partnering deals at key value inflection points or, for selected opportunities, commercialising products itself. Mereo is building a strong pipeline of innovative medicines, particularly focused in rare and specialist disease areas, through the acquisition of validated, mid-stage development programmes from large biopharmaceutical companies. Mereo has access to an extensive network of experts with experience across multiple clinical disciplines and has entered into a strategic development partnership with ICON, a leading global contract research organisation (CRO), for the clinical development of its portfolio.
Mereo’s initial mid-stage portfolio comprises three well characterised, novel products for the treatment of diseases with considerable unmet medical need, acquired from Novartis. Each programme has a comprehensive dataset, including proof of concept clinical studies.
Mereo’s pipeline comprises the following programmes:
BPS-804 in the orphan disease Osteogenesis Imperfecta or Brittle Bone Syndrome is a fully human monoclonal antibody which is being developed to improve bone density (and thereby reduce fractures) in osteogenesis imperfecta (OI), commonly known as brittle bone syndrome.
BCT-197 in acute exacerbations of COPD is an orally active p38 MAP kinase inhibitor being developed as first-line acute therapy alongside existing treatment and supportive care for acute exacerbations of chronic obstructive pulmonary disease (AECOPD).
BGS-649 in hypogonadotrophic hypogonadism is a novel orally active aromatase inhibitor being developed as a first-line therapy for the treatment of obese men with hypogonadotrophic hypogonadism (HH), with the aim of normalising testosterone levels.
Mereo Pharma is led by Dr Denise Scots-Knight (Pollard-Knight) as Chief Executive Officer, formerly Managing Partner of the healthcare-focused venture capital investor Phase4 Partners and Dr Peter Fellner as Chairman, who has a wide range of experience in biotechnology and pharma companies. Mereo’s management team is highly experienced in identifying and selecting new product opportunities, managing clinical development pipelines, capital raising and structuring in- and out-licensing transactions.
Others:
- • On July 29, 2015, Mereo BioPharma announced that it has successfully raised $118m (c. £76.5m), gross, from blue chip institutional investors and simultaneously acquired a portfolio of three innovative clinical-stage development programmes from Novartis Pharmaceuticals. Novartis, through the shares issued in consideration for the acquisition of products, will also hold an equity stake in Mereo. Mereo has secured this financing from UK institutional investors Woodford Investment Management and Invesco Perpetual. In addition, Novartis, through the shares issued in consideration for the acquisition of products, will hold an equity stake in Mereo and intends to make a cash investment in Mereo in future financings.
Therapeutic area: Rare diseases
Is general: Yes
