Directorate Change

Mereo BioPharma Group plc

("Mereo" or the "Company" or the "Group")

Directorate Change

London, 5 October 2016 - Mereo BioPharma Group plc (AIM: MPH), a clinical stage, UK-based, biopharmaceutical company focused on rare and specialty diseases, today announces that Richard Bungay, the Company's Chief Financial Officer and Chief Operating Officer, will be leaving Mereo in order to pursue other business interests. Richard will be leaving in April 2017 in order to ensure an orderly transition. The search for a Chief Financial Officer is underway. The Company has also initiated a search for a Head of Pharmaceutical Development. Further announcements will be made in due course.

Dr Peter Fellner, Chairman of Mereo BioPharma commented:

"On behalf of the Board I would like to thank Richard for his significant contributions to the successful launch of the Company and the subsequent introduction of its shares on AIM. We wish him every success for the future."

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About Mereo

Mereo is a UK-based biopharmaceutical company focused on the development of innovative medicines that aim to address unmet medical needs in rare and specialty disease areas and improve patient quality of life. The Company seeks to selectively acquire development-stage product candidates with demonstrated clinically meaningful data from large pharmaceutical companies and to rapidly progress these product candidates to subsequent value inflection points.

Mereo combines the operational discipline and efficiency of a small company with the financial resources to conduct comprehensive clinical studies. The Company has the option to directly commercialise products, for example in orphan diseases, in addition to partnering or divesting its products.

Mereo's initial portfolio consists of three mid-late stage clinical assets that were acquired from Novartis in July 2015. BPS-804 is being developed for the prevention of fractures resulting from osteogenesis imperfecta (brittle bone disease); BCT-197, is being developed to treat inflammation in patients with an acute exacerbation of chronic obstructive pulmonary disease; and BGS-649 is a once-weekly pill to restore normal testosterone levels in men with hypogonadal hypogonadism.

In H1 2016 the Company initiated a Phase 2 study with BCT-197 and a Phase 2b study with BGS-649. Mereo submitted its proposed Phase 2b/3 pivotal study design package for BPS-804 to the regulator in H1 2016 and expects to commence the trial during H1 2017, pending feedback from the regulator. Additional product opportunities, from a range of large pharmaceutical companies, are under active evaluation.