Why Mereo BioPharma Shares Are Jumping Today

AstraZeneca plc AZN is rumored to be eyeing take over of Mereo BioPharma Group plc MREO, according to a report in The Times.
The Times' report says that "Mereo would accept $5, equating to $500 million including American depositary receipts or ADRs. Evercore and Citigroup are said to be involved as advisers."
Mereo's lead drug, a TIGIT called etigilimab, is putting them in a race that disappointed after Roche Holdings AG RHHBY suffered failures.
The company reported at ASCO an overall response rate (ORR) of 11% and disease control rate (DCR) of 44%, including a complete response among 27 evaluable patients.
Mereo in-licensed AstraZeneca's orally-active neutrophil elastase inhibitor alvelestat for the rare disease alpha-1 antitrypsin deficiency (AATD) in 2017.
Recently, Mereo reported topline efficacy and safety results from a Phase 2 study of alvelestat in AATD-associated emphysema.
The rumor has emerged as Mereo has just been notified by the Nasdaq that the price of its American Depository Shares has failed to maintain the minimum price of $1 over the last 30 days, putting it at risk of delisting.
Price Action: MREO shares are up 61.89% at $1.29 during the market session on the last check Friday.