Rubric Capital Management Comments on Mereo BioPharma Updated Operating Plan

Reiterates Urgent Need for Board Change to Maximize Value

NEW YORK--(BUSINESS WIRE)--Rubric Capital Management LP (“Rubric”), an investment advisor whose funds and accounts collectively own approximately 14% of the outstanding equity of Mereo BioPharma Group plc (NASDAQ: MREO) (“Mereo” or the “Company”), today issued the following statement in response to the Company’s updated operating plan:

“We commend Mereo management for heeding our call for action and taking the painful but necessary step of streamlining operations in order to preserve cash. At the time of the alvelestat data release in May through today, Mereo has improved its cash runway by two years and refocused resources on its most valuable programs. Unfortunately, in the second quarter alone, Mereo burned approximately £9 million of cash, which the company clearly recognizes is unsustainable.

We do not believe this action would have been taken without Rubric’s public engagement and, while this step is encouraging, we believe there is more work that can be done to unlock value at Mereo. Mereo’s actions today confirm that our proxy contest has shaken the boardroom of Mereo off the autopilot it has been operating on for years, but this is not enough – active corporate governance paired with direct alignment with shareholders is necessary to achieve maximum value. Rubric’s slate of director nominees is highly qualified to drive further necessary change that is in the best interests of shareholders. We look forward to the general meeting and encourage all shareholders to vote in order to achieve further value enhancement led by our nominees.”

Rubric’s slate of highly qualified director nominees includes: Annalisa Jenkins, MBBS, FRCP, Daniel Shames, MD, Marc Yoskowitz, Justin Roberts, and David Rosen.