- Mereo BioPharma Group said it had agreed to acquire oncology-focused clinical stage bio-pharmaceutical business OncoMed Pharmaceuticals for around $57.4m.

OncoMed Pharmaceuticals would receive Mereo American depository shares converted via the issue of around 23.7m new Mereo ordinary shares.

The ordinary shares underlying the Mereo ADRs represented an aggregate value of around $57.4m, based on Mereo's closing share price of 190p on Tuesday.

That represented a premium of 34% over the OncoMed market capitalisation of $42.9m.

'The transaction allows us to broaden our asset base, including strengthening our cash position to enable us to progress beyond our key clinical milestones,' Mereo BioPharma chief executive Denise Scots-Knight said.

'We believe that our plan to initiate a US ADR programme on Nasdaq, in addition to the continued listing of our ordinary shares on AIM, will facilitate a deep engagement with the broadest range of appropriate investors.'

At 1:35pm: [LON:MPH] Mereo Biopharma Group Ltd share price was +3p at 193p

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