First Quarter 2022 Financial Information
As of March 31, 2022, Mereo BioPharma Group plc (the “Company”) had cash and short-term deposits of £84.9 million
($111.4 million). Net cash burn during the first quarter of 2022 amounted to £9.4 million ($12.4 million). The Company expects its existing cash and short-term deposits will enable it to fund its currently committed clinical trials,
operating expenses and capital expenditure requirements into 2024.
The Company’s current business plan and cash flow forecasts
consider (i) ongoing research and development efforts which are focused on etigilimab, the Company’s oncology product candidate, and on its rare disease product candidates, setrusumab and alvelestat, (ii) general corporate funding
requirements, and (iii) the £3.8 million convertible loan note instrument with Novartis pursuant to which it issued 3,841,479 unsecured convertible loan notes and warrants to purchase 1,449,614 ordinary shares, exercisable until
February 2023 and February 2025, respectively.
The contents of this Report on Form 6-K are
incorporated by reference in the Company’s registration statement on Form F-3 (File No. 333-258495).
Forward-Looking Statements
This Report
on Form 6-K contains “forward-looking statements.” All statements other than statements of historical fact contained herein are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements usually relate to future
events and anticipated revenues, earnings, cash flows or other aspects of our operations or operating results. Forward-looking statements are often identified by the words “believe,” “expect,” “anticipate,”
“plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,” “estimate,” “outlook” and similar expressions, including the negative thereof. The absence of
these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on the Company’s current expectations, beliefs and assumptions concerning future developments and business conditions
and their potential effect on the Company. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that it anticipates.
All of the Company’s forward-looking statements involve known and unknown risks and uncertainties some of which are significant or
beyond its control and assumptions that could cause actual results to differ materially from the Company’s historical experience and its present expectations or projections. You should carefully consider the foregoing factors and the other
risks and uncertainties that affect the Company’s business, including those described in the “Risk Factors” section of its latest Annual Report
on Form 20-F, reports on Form 6-K and other documents furnished or filed from time to time by the Company with the Securities and
Exchange Commission. The Company wishes to caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any of our
forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.