UK-based biopharmaceutical company Mereo Biopharma is set to float on Aim providing an exit to shareholders including pharmaceutical firm Novartis, Reuters reported yesterday.
Founded in March 2015, Mereo focuses on bringing treatments to market that have been initially developed by larger pharmaceutical companies that may not have the necessary resources to advance each candidate beyond a phase 2 trial.
Mereo raised £76.5m ($119m) in a series A round last July from asset management firm Woodford Investment Management and investment firm Invesco. The company also awarded a stake to Novartis in return for a license to three clinical stage programs.
Novartis made its first cash investment in Mereo last week when it provided £14.8m in the form of a convertible loan.
The IPO proceeds will be used to advance the development of these three candidates, which focus on the respective treatment of brittle bone syndrome, acute chronic obstructive pulmonary disease – a type of lung disease – and hypogonadotropic hypogonadism in obese men – caused by a lack of hormones that stimulate testes.
Mereo is expected to begin trading on Aim on June 9.
Denise Scots-Knight, chief executive of Mereo, said: “Our strategy is to build, over time, a diverse portfolio, and having publicly traded shares will provide additional flexibility to secure the next product candidates, which are likely to be primarily sourced from large pharmaceutical companies.”