NEW YORK, Feb. 23, 2026 (GLOBE NEWSWIRE) -- From a closing price of $2.31 on December 26, 2025, Mereo BioPharma Group plc (NASDAQ: MREO) shares plummeted to $0.29 on December 29, 2025—a decline of more than 87.7%—as corrective disclosures allegedly revealed that neither the ORBIT nor COSMIC Phase 3 studies achieved statistical significance. Investors have until April 6, 2026 to seek lead plaintiff status.
See if you can recover losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com | (212) 363-7500.
The Alleged 87% Stock Decline
The filing states that when Mereo announced that both Phase 3 trials failed to meet their primary endpoints, the market reacted swiftly and dramatically. As set forth in the complaint, analysts from Cantor, Baird, and J.P. Morgan all downgraded the stock following the December 29, 2025 disclosure.
Prior Warning Signs Allegedly Ignored
It is alleged that the December crash was not the first indication of trouble. On July 9, 2025, Mereo announced the Phase 3 ORBIT study failed to achieve statistical significance at the second interim analysis. Shares dropped from $2.94 to $1.69—a decline of approximately 42.52%. The complaint claims defendants continued making misleading statements even after this setback.
Alleged Stock Impact by the Numbers
• July 10, 2025: Stock declined 42.52% following second interim analysis miss
• December 29, 2025: Stock declined 87.7% following final Phase 3 results
• Needham reportedly lowered price target by more than 28% after July disclosure
• Cantor titled report "Disappointing Setrusumab Outcome; We Were Wrong On This Call"
• Baird reduced price target from $8.00 to $1.00 following December disclosure
Alleged 'Confident' vs. 'Disappointed' Characterization
As set forth in the complaint, CEO Denise Scots-Knight expressed confidence throughout the Class Period that setrusumab would achieve its endpoints. Following the December 29, 2025 disclosure, she reportedly stated: "Whilst we are disappointed by these results, we will be conducting additional analyses on the data." The lawsuit contends this shift from confidence to disappointment underscores the alleged disconnect between public statements and underlying reality.
"The complaint raises serious questions about whether investors received accurate information about operational challenges," said Joseph E. Levi, Esq. "Our team is thoroughly investigating these claims."
Levi & Korsinsky, LLP — Top 50 securities litigation firm (ISS Securities Class Action Services, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors nationwide.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
(212) 363-7500
jlevi@levikorsinsky.com
www.zlk.com
