Mereo has entered into a US$5 million equity financing with Novartis and entered a purchase agreement to issue up to US$28 million shares with Aspire Capital Fund.
Mereo BioPharma Group (NASDAQ:MREO,AIM:MPH) has entered into a US$5 million convertible equity financing with Novartis Pharma. The firm has also concurrently entered into a purchase agreement to issue up to US$28 million of the company’s ordinary shares exchangeable for American Depositary Shares, including a US$3 million initial purchase, with Aspire Capital Fund.
As quoted in the press release:
“These transactions provide us with an efficient and flexible source of capital as we continue to prepare for our upcoming Type B End-of-Phase 2 meeting with the FDA to discuss the positive data from our recently-completed Phase 2b ASTEROID study with setrusumab in adult patients with osteogenesis imperfecta (“OI”), as well as our proposed pivotal study design in pediatric OI patients. The EMA supports the initiation of the planned pivotal pediatric Phase 3 study in Europe on the basis of the previously approved pediatric investigational plan (PIP),” said Dr. Denise Scots-Knight, Chief Executive Officer of Mereo. “We are very pleased to have secured financing from both Novartis and Aspire, and we look forward to the continued advancement of our pipeline in 2020.”