MREO - Mereo BioPharma stock gains on licensing pact with Ultragenyx

Mereo BioPharma (MREO) jumps 18% after hours, after announcing a license and collaboration agreement with Ultragenyx Pharmaceutical (RARE) for setrusumab,  a monoclonal antibody, for osteogenesis imperfecta ((OI)), a rare genetic disorder characterized by fragile bones and reduced bone mass resulting in bones that break easily, loose joints, and weakened teeth.The companies will expand and initially prioritize the development of setrusumab for pediatric patients with OI, with a pediatric Phase 2/3 study is expected to start in 2021.Ultragenyx will lead future global development of setrusumab in both pediatric and adult patients, and it has exclusive license to setrusumab in the US and rest of the world, excluding Europe where Mereo retains commercial rights.Mereo will receive an upfront payment of $50M, and is entitled to milestone payment of up to $254M, as well as tiered double digit percentage royalties. Mereo will pay a fixed double digit percentage royalty to Ultragenyx on net sales in Europe. Under its 2015 agreement with

For further details see:

Mereo BioPharma stock gains on licensing pact with Ultragenyx