Shares of Mereo BioPharma Group plc (MREO) are currently surging over 50% after the clinical stage biopharmaceutical company announced a collaboration deal with Ultragenyx Pharmaceutical Inc. (RARE), a company focused on development of treatment for ultra-rare diseases.
MREO is currently trading at $3.35, up $1.14 or 51.5837%, on the Nasdaq.
Mereo and Ultragenyx have reached a license and collaboration agreement for setrusumab, a monoclonal antibody in clinical development for osteogenesis imperfecta.
Ultragenyx will lead and fund the development of Setrusumab to approval. Mereo will retain commercial rights in Europe, while Ultragenyx will commercialize it in US and in rest of world.
Mereo will receives $50 million upfront and is eligible for milestones up to $254 million.
Setrusumab is an investigational anti-sclerostin fully human monoclonal antibody that has shown the ability to improve bone production and density leading to greater bone strength in animal models of osteogenesis imperfecta.
Setrusumab has received orphan drug designation from the FDA and European Medicines Agency.
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