Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Oncology and rare diseases focused Mereo BioPharma posted a deeper first-half loss owing to a jump in finance charges.
Pre-tax losses for the six months through June amounted to £126.1 million, compared to losses of £18.7 million year-on-year and included £97.6 million of finance charges.
Mereo BioPharma said the charges mainly related to changes in the fair value of embedded derivatives, due to the re-measurement of the conversion feature of a loan note issued as part of a private placement.
They were also related changes in the fair value of warrants in connection to the private placement and interest on bank debt.
Operating losses amounted to £16.7 million, compared to operating losses of £18.8 million year-on-year, amid a fall in R&D spending.
The company said it was on track to initiate a phase 1b/2 clinical trial of etigilimab for the treatment of solid tumors in the fourth quarter of 2020.
Enrolment had resumed in a phase 2 study of alvelestat in Alpha-1 antitrypsin deficiency.
The company also had initiated a placebo-controlled Phase 1b/2 clinical trial in Covid-19 respiratory disease.
Partnering discussions continued for a portfolio of clinical-stage programs including setrusumab for osteogenesis imperfecta.
At 2:46pm: (LON:MPH) Mereo Biopharma Group Ltd share price was 0p at 44.5p