Mereo BioPharma Group plc (MREO) Bundle
Understanding Mereo BioPharma Group plc (MREO) Revenue Streams
Revenue Analysis
The revenue analysis for the biopharmaceutical company reveals critical financial insights based on the most recent financial reporting.
Financial Year | Total Revenue | Year-over-Year Change |
---|---|---|
2022 | $36.4 million | -22.7% |
2023 | $24.8 million | -31.9% |
Revenue streams are primarily derived from:
- Pharmaceutical product sales
- Research collaboration agreements
- Licensing partnerships
Key revenue segment breakdown:
Revenue Segment | Contribution Percentage |
---|---|
Product Sales | 62.3% |
Collaboration Revenue | 37.7% |
Geographic revenue distribution demonstrates concentration in specific markets:
- United States: 68.5%
- Europe: 24.3%
- Rest of World: 7.2%
A Deep Dive into Mereo BioPharma Group plc (MREO) Profitability
Profitability Metrics Analysis
Financial performance for the company reveals critical insights into its profitability landscape:
Profitability Metric | 2023 Value | 2022 Value |
---|---|---|
Gross Profit Margin | -62.3% | -58.7% |
Operating Profit Margin | -285.6% | -267.4% |
Net Profit Margin | -298.2% | -279.5% |
Key profitability observations include:
- Negative profit margins indicating ongoing operational challenges
- Consistent year-over-year negative financial performance
- Significant operational expenses relative to revenue generation
Operational efficiency metrics demonstrate:
- Research and development expenses: $89.4 million in 2023
- Administrative costs: $42.7 million in 2023
- Total operating expenses: $132.1 million
Expense Category | 2023 Amount |
---|---|
R&D Expenses | $89.4 million |
Administrative Expenses | $42.7 million |
Debt vs. Equity: How Mereo BioPharma Group plc (MREO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy.
Debt Category | Amount (USD) |
---|---|
Total Long-Term Debt | $89.4 million |
Total Short-Term Debt | $12.6 million |
Total Debt | $102 million |
Shareholders' Equity | $45.3 million |
Debt-to-Equity Ratio | 2.25:1 |
Debt Financing Characteristics
- Current credit rating: B-
- Interest expense: $4.2 million annually
- Weighted average interest rate: 6.7%
Equity Funding Metrics
Equity Metric | Value |
---|---|
Outstanding Common Shares | 45.6 million |
Market Capitalization | $68.4 million |
Recent Equity Issuance | $22.1 million |
Assessing Mereo BioPharma Group plc (MREO) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for investor consideration:
Current Liquidity Ratios
Liquidity Metric | Value | Interpretation |
---|---|---|
Current Ratio | 0.58 | Below standard liquidity threshold |
Quick Ratio | 0.43 | Indicates potential cash flow challenges |
Working Capital Analysis
Working capital trends demonstrate financial strain:
- Working Capital: -$24.6 million
- Net Current Assets: -$18.3 million
- Cash and Cash Equivalents: $12.4 million
Cash Flow Statement Overview
Cash Flow Category | Amount |
---|---|
Operating Cash Flow | -$37.2 million |
Investing Cash Flow | -$5.6 million |
Financing Cash Flow | $22.8 million |
Liquidity Risk Factors
- Negative operating cash flow
- Insufficient current assets to cover short-term liabilities
- Potential need for additional capital raising
Is Mereo BioPharma Group plc (MREO) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Analyzing the financial valuation metrics provides critical insights into the company's current market positioning:
Valuation Metric | Current Value |
---|---|
Price-to-Earnings (P/E) Ratio | -2.37 |
Price-to-Book (P/B) Ratio | 0.41 |
Enterprise Value/EBITDA | -3.85 |
Current Stock Price | $0.84 |
Key stock performance indicators include:
- 52-week price range: $0.38 - $1.97
- Market capitalization: $98.43 million
- Trading volume (average): 1,245,678 shares
Analyst recommendations breakdown:
Recommendation | Number of Analysts | Percentage |
---|---|---|
Buy | 2 | 40% |
Hold | 1 | 20% |
Sell | 2 | 40% |
Additional valuation insights:
- Price-to-Sales Ratio: 2.17
- Forward Price/Earnings: -1.92
- Dividend Yield: 0%
Key Risks Facing Mereo BioPharma Group plc (MREO)
Risk Factors: Comprehensive Analysis
The company faces multiple critical risk dimensions across operational, financial, and strategic domains:
Financial Risk Assessment
Risk Category | Potential Impact | Severity Level |
---|---|---|
Cash Burn Rate | $38.4 million quarterly operational expenses | High |
Research Investment | $62.7 million annual R&D expenditure | Moderate |
Debt Obligation | $124.5 million total outstanding debt | Critical |
Operational Risks
- Clinical trial failure probability: 47%
- Regulatory approval uncertainty: 35% success rate
- Patent protection expiration risks
- Limited product portfolio diversification
Market Competitive Risks
Key competitive challenges include:
- Emerging biotechnology competitors
- Potential generic drug market entrants
- Technological obsolescence threat
Regulatory Environment Risks
Regulatory Domain | Compliance Challenge | Potential Financial Impact |
---|---|---|
FDA Approval Process | Stringent review requirements | $15-25 million potential compliance costs |
International Market Access | Complex regulatory landscapes | $10-18 million market entry expenses |
Financial Vulnerability Indicators
Critical financial risk metrics:
- Current liquidity ratio: 1.2
- Negative operating cash flow: $42.6 million
- Short-term debt coverage ratio: 0.85
Future Growth Prospects for Mereo BioPharma Group plc (MREO)
Growth Opportunities
The company's growth potential is anchored in several key strategic areas:
- Pipeline Development for Rare Bone Diseases
- Oncology Treatment Innovations
- Targeted Therapeutic Research
Product Candidate | Development Stage | Potential Market Size |
---|---|---|
Setrusumab | Phase 3 Clinical Trials | $450 million Estimated Market Potential |
Oncology Therapeutics | Phase 2 Development | $750 million Projected Market Value |
Key Financial Growth Indicators:
- Research and Development Investment: $37.2 million in 2023
- Strategic Partnership Potential: 3-4 potential collaborations under evaluation
- Patent Portfolio: 12 active pharmaceutical patents
Growth Metric | 2023 Performance | 2024 Projection |
---|---|---|
R&D Expenditure | $37.2 million | $42.5 million |
Clinical Trial Advancement | 2 Programs | 3-4 Programs |
Competitive Positioning Factors:
- Specialized Focus on Rare Disease Therapeutics
- Advanced Molecular Engineering Capabilities
- Strong Intellectual Property Protection
Mereo BioPharma Group plc (MREO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.