Investors Accuse Mereo BioPharma of Misleading Claims on Phase 3 Trials

They promised hope. A breakthrough drug. And a future where fragile bones could finally get stronger.

Mereo BioPharma told investors its Phase 3 trials for setrusumab were on track. Executives said stronger bones would mean fewer fractures. They sounded confident. Repeatedly. Back in June 2023, Mereo hyped early trial data showing big gains in bone density. By 2024, they doubled down. Full enrollment. Strong signals. Confidence heading into final readouts.

But behind the scenes, it's alleged that the key studies were failing. The drug was not reducing fractures, the main goal investors were sold on. On July 9, 2025, Mereo admitted one major trial missed its interim target. The stock collapsed about 42% in a single day. Still, executives reassured investors.

Then came December 29, 2025. The truth finally landed. Both Phase Three trials failed their primary endpoints. The stock crashed nearly 90%.

Now, shocked investors are fighting back. More shareholders are joining the lawsuit.