Mereo BioPharma Group plc Segments Disclosure
19. Segment information
The Company has one operating segment focused on the business of developing rare disease therapies. The accounting policies of the single operating segment are described in Note 2. The chief operating decision maker, its Chief Executive Officer, assesses performance for the entity and decides how to allocate resources based on consolidated net loss before income tax, which is reported on the consolidated statements of operations and comprehensive loss. The measure of segment assets is reported on the balance sheet as total consolidated assets.
The chief operating decision maker uses consolidated net loss before income tax and budget-to-actual variances for consolidated net loss before income tax to assess the performance of the operating segment.
The following table presents certain financial data for the Company’s reportable segment, including significant segment expenses regularly provided to the chief operating decision maker to assess performance of the Company.
|
|
Year Ended |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
|
($'000) |
|
|
($'000) |
|
||
Revenue |
|
$ |
500 |
|
|
$ |
— |
|
Cost of revenue |
|
|
(133 |
) |
|
|
— |
|
Research and development expenses |
|
|
|
|
|
|
||
Setrusumab (BPS-804/UX143) |
|
|
(11,518 |
) |
|
|
(5,784 |
) |
Alvelestat (MPH-966) |
|
|
(5,174 |
) |
|
|
(12,918 |
) |
Etigilimab (MPH-313) |
|
|
(809 |
) |
|
|
(1,768 |
) |
Other |
|
|
(265 |
) |
|
|
(460 |
) |
General and administrative expenses |
|
|
(23,008 |
) |
|
|
(26,434 |
) |
Other segment items |
|
|
(1,471 |
) |
|
|
4,111 |
|
Net loss before income tax |
|
$ |
(41,878 |
) |
|
$ |
(43,253 |
) |
The revenue recognized by the Company during the year ended December 31, 2025 was attributable to its operations in the U.K.
Other segment expenses consist of interest income, interest expense, change in fair value of warrants, foreign currency transaction loss/(gain), benefit from research and development tax credit and other income. These are disclosed in the consolidated statements of operations and comprehensive loss.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.