Mereo Biopharma Stock Fair Value – MERE BIOPHARMA Reports Second Quarter FY2023 Earnings Results
September 8, 2023
🌥️Earnings Overview
Mereo ($NASDAQ:MREO) BioPharma announced their Q2 earnings results for the period from April 1, 2023 to June 30, 2023. Total revenue reached GBP 7.1 million, a significant increase from 0.0 million reported in the same quarter of the previous year. Net income was reported to be GBP -11.0 million, an improvement when compared to -19.2 million in the same quarter of the previous year.
Stock Price
MEREO BIOPHARMA reported second quarter FY2023 earnings results on Thursday, with their stock opening at $1.4 and closing at the same price, up by 1.8% from the last closing price of $1.4. The company’s management team stated that they are confident in their financial outlook for the remainder of the fiscal year despite the current challenging economic climate, and they remain focused on their goal of delivering long-term value to shareholders. They also reported that they are actively exploring strategic partnerships with other biopharma companies to expand their product pipeline and create new revenue streams. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mereo Biopharma. More…
| Total Revenues | Net Income | Net Margin |
| 7.13 | -26.07 | -437.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mereo Biopharma. More…
| Operations | Investing | Financing |
| -33.28 | 0.65 | -1.41 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mereo Biopharma. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 80.64 | 22.89 | 0.46 |
Key Ratios Snapshot
Some of the financial key ratios for Mereo Biopharma are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | – | -353.3% |
| FCF Margin | ROE | ROA |
| -471.6% | -26.3% | -19.5% |
Analysis – Mereo Biopharma Stock Fair Value
At GoodWhale, we recently conducted an analysis of MEREO BIOPHARMA‘s financials. Based on our proprietary Valuation Line, which takes into account a range of factors including industry performance, market sentiment, and company fundamentals, we have determined that the intrinsic value of MEREO BIOPHARMA share is around $1.2. This indicates that the current stock price of $1.4 is a fair price, though it is slightly overvalued by 18.1%. We believe that this provides investors with a good opportunity to buy into the stock now before the excess value is taken away from the market. More…
Peers
Mereo BioPharma Group PLC is a clinical-stage biopharmaceutical company focused on developing therapeutics for patients with rare and serious diseases. The company’s lead product candidate, Setrusumab, is in clinical development for the treatment of osteogenesis imperfecta, a rare and debilitating bone disorder. Mereo BioPharma Group PLC’s main competitors are Herantis Pharma PLC, Forma Therapeutics Holdings Inc, and Candel Therapeutics Inc.
– Herantis Pharma PLC ($OTCPK:HRPMF)
Herantis Pharma PLC is a pharmaceutical company that focuses on the development and commercialization of novel therapies for the treatment of cancer and other serious diseases. The company has a market cap of 30.73M as of 2022 and a Return on Equity of -1463.65%. Herantis Pharma PLC is headquartered in Helsinki, Finland.
– Forma Therapeutics Holdings Inc ($NASDAQ:FMTX)
Forma Therapeutics Holdings Inc is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapeutics to treat cancers. As of 2022, Forma Therapeutics Holdings Inc has a market cap of 957.69M and a Return on Equity of -26.19%. The company’s focus on cancer therapeutics makes it a compelling investment for those looking to invest in the healthcare sector.
– Candel Therapeutics Inc ($NASDAQ:CADL)
Candel Therapeutics Inc is a clinical stage biopharmaceutical company. The Company’s focus is on developing therapies for cancer and other diseases. Its product candidates are in various stages of development, including a phase I clinical trial for the treatment of solid tumors, a phase II clinical trial for the treatment of mantle cell lymphoma and a phase II clinical trial for the treatment of diffuse large B-cell lymphoma.
Summary
MEREO BIOPHARMA reported their Q2 FY2023 earnings results, with total revenue of GBP 7.1 million and reported net income of -11.0 million. The total revenue was significantly higher than the same period last year, while the net income was lower. Investors should take note that the company is continuing to grow its revenues, but profitability remains a challenge. It is also worth considering how the company’s revenue and profit margins are likely to change in the future, and how the company is investing in research and development.
