LEVI & KORSINSKY, LLP: BONE MINERAL DENSITY CLAIMS CHALLENGED IN MEREO BIOPHARMA SECURITIES ACTION

Time-Sensitive: Allegations Focus on BMD-to-Fracture Reduction Representations

NEW YORK, March 18, 2026 /PRNewswire/ --  Levi & Korsinsky, LLP alerts investors in Mereo BioPharma Group plc (NASDAQ: MREO) to a pending securities class action. The Court has set April 6, 2026 as the deadline to apply for lead plaintiff appointment.

"Investors deserve transparency about material risks that could affect their investments," stated Joseph E. Levi, Esq., managing partner of Levi & Korsinsky, LLP. "The translation of bone mineral density improvements to actual fracture reduction is a fundamental issue for biopharmaceutical investors."

• Class Period: June 5, 2023 through December 26, 2025

Submit your information to join this case or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500.

The Alleged BMD-Fracture Correlation Problem

The lawsuit asserts that management repeatedly claimed setrusumab's ability to increase bone mineral density would necessarily translate to reduced fracture rates in OI patients. As alleged, the Company touted Phase 2 data showing a "67% reduction in annualized fracture rate" while omitting that this data lacked the control group comparisons necessary to establish causation.

What Management Allegedly Knew

The action claims that despite public expressions of confidence, management possessed information suggesting the Phase 3 trials faced significant challenges. It is alleged that executives were aware the Phase 2 results could not properly distinguish setrusumab's effects from improvements due to increased standard of care or placebo effects.

Industry Context for OI Drug Development

• Osteogenesis imperfecta is a rare genetic disorder affecting bone strength
• No FDA-approved therapies currently exist for OI treatment
• Bisphosphonates are used off-label as the current standard of care
• The lawsuit alleges the COSMIC study compared setrusumab to bisphosphonates but failed to achieve statistical significance
• Anti-sclerostin antibodies like setrusumab work by blocking a protein that inhibits bone formation

Why BMD Adequacy Allegedly Matters to Investors

According to the action, the fundamental question for investors was whether BMD improvements constituted a reliable surrogate endpoint for fracture reduction. The complaint alleges that while the Company consistently achieved BMD improvements, these did not translate to the clinically meaningful fracture reduction the market expected.

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WHY LEVI & KORSINSKY, LLP

Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors across the country.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

(212) 363-7500

[email protected]

www.zlk.com

SOURCE Levi & Korsinsky, LLP