Mereo BioPharma and OncoMed Pharma to merge

5 December 2018

UK-based rare and specialty diseases specialist Mereo BioPharma (AIM: MPH) and US oncology focused OncoMed Pharmaceuticals (Nasdaq: OMED) today announce the proposed combination of the companies.

The transaction, via a all-stock deal valued at $57.4 million based on Mereo's closing share price of 190 pence on Tuesday, has been unanimously approved by the board of directors of each company. The transaction is expected to complete in the first half of 2019.

Subject to potential adjustment, based upon an OncoMed net cash balance of $38 million at completion, current Mereo shareholders are expected to own around 75% of the issued share capital of the enlarged group, while current OncoMed shareholders will hold about 25%.

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