By Colin Kellaher

Mereo BioPharma Group PLC (MREO, MPH.LN) on Thursday said Celgene Corp. (CELG) won't exercise its option to license the cancer treatment etigilimab, one of two product candidates Mereo acquired in its April takeover of OncoMed Pharmaceuticals Inc.

Mereo, a London clinical-stage biopharmaceutical company focused on rare diseases, said Celgene's decision was based on strategic portfolio considerations. The Summit, N.J., biopharmaceutical company is in the process of being acquired by Bristol-Myers Squibb Co. (BMY).

As a result of Celgene's decision, Mereo said holders of the contingent value rights that OncoMed issued related to etigilimab won't receive any payments.

Mereo, which will retain the worldwide rights to etigilimab, said it plans to initiate talks with other potential partners for the program.

London-listed shares of Mereo were recently down 8.1%.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

June 13, 2019 08:41 ET (12:41 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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