Cover Page
Cover Page - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | Mereo Biopharma Group plc | |
Entity Central Index Key | 0001719714 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 584,908,239 | |
Entity Voluntary Filers | No | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-38452 | |
Entity Incorporation, State or Country Code | X0 | |
Entity Address, Address Line One | One Cavendish Place | |
Entity Address, Address Line Two | 4th Floor | |
Entity Address, City or Town | London | |
Entity Address, Country | GB | |
Entity Address, Postal Zip Code | W1G 0QF | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Document Accounting Standard | International Financial Reporting Standards | |
Document Registration Statement | false | |
ICFR Auditor Attestation Flag | false | |
Auditor Name | BDO LLP | Ernst & Young LLP |
Auditor Firm ID | 1295 | 1438 |
Auditor Location | Reading, United Kingdom | Reading, United Kingdom |
Business Contact [Member] | ||
Document Information [Line Items] | ||
Contact Personnel Name | Charles Sermon | |
Contact Personnel Email Address | cs@mereobiopharma.com | |
Entity Address, Address Line One | 1 Cavendish Place | |
Entity Address, Address Line Two | 4th Floor | |
Entity Address, City or Town | London | |
Entity Address, Country | GB | |
Entity Address, Postal Zip Code | W1G 0QF | |
City Area Code | +44 | |
Local Phone Number | 333-023-7300 | |
ADR [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | MREO | |
Title of 12(b) Security | American Depositary Shares, each representing five ordinary shares, nominal value of £0.003 per share | |
Security Exchange Name | NASDAQ | |
Ordinary shares [member] | ||
Document Information [Line Items] | ||
No Trading Symbol Flag | true | |
Title of 12(b) Security | Ordinary Shares, nominal value of £0.003 per share | |
Security Exchange Name | NASDAQ |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income(Loss) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of comprehensive income [abstract] | |||
Revenue | £ 36,464 | ||
Cost of sales | (17,908) | ||
Research and development expenses | (23,559) | £ (16,347) | £ (23,608) |
Administrative expenses | (15,933) | (21,222) | (15,909) |
Operating loss | (20,936) | (37,569) | (39,517) |
Net income recognized on acquisition of subsidiary | 0 | 1,035 | |
Finance income | 1 | 44 | 377 |
Finance costs | (4,022) | (6,383) | (4,371) |
Changes in the fair value of financial instruments | 40,039 | (109,849) | 875 |
Gain/(loss) on disposal of intangible assets | 113 | (10,872) | |
Net foreign exchange loss | (954) | (1,821) | 483 |
Profit/(loss) before tax | 14,241 | (166,450) | (41,118) |
Taxation | (1,516) | 2,822 | 6,274 |
Profit/(loss) for the year, attributable to equity holders of the parent | 12,725 | (163,628) | (34,844) |
Currency translation of foreign operations | (191) | 349 | (499) |
Total comprehensive income/(loss) for the year, attributable to equity holders of the parent | £ 12,534 | £ (163,279) | £ (35,343) |
Basic profit/(loss) per share for the year (in £) | £ 0.02 | £ (0.48) | £ (0.39) |
Diluted loss per share for the year (in £) | £ (0.05) | £ (0.48) | £ (0.39) |
Consolidated Balance Sheet
Consolidated Balance Sheet - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Non-current assets | ||
Property, plant and equipment | £ 2,530 | £ 1,573 |
Intangible assets | 24,564 | 31,648 |
Total non-current assets | 27,094 | 33,221 |
Current assets | ||
Prepayments | 2,799 | 1,619 |
R&D tax credits | 2,818 | |
Other taxes receivable | 809 | 804 |
Other receivables | 1,419 | 1,016 |
Cash and short-term deposits | 94,296 | 23,469 |
Total current assets | 99,323 | 29,726 |
Total assets | 126,417 | 62,947 |
Non-current liabilities | ||
Provisions | 1,320 | 1,216 |
Convertible loan notes | 14,384 | 16,142 |
Warrant liability | 8,336 | 50,775 |
Lease liability | 1,754 | 1,158 |
Other liabilities | 80 | 62 |
Total non-current liabilities | 25,874 | 69,353 |
Current liabilities | ||
Trade and other payables | 2,499 | 3,333 |
Accruals | 3,826 | 4,178 |
Current tax liabilities | 1,522 | 0 |
Provisions | 2,803 | 418 |
Lease liability | 622 | 636 |
Other liabilities | 1,269 | 0 |
Total current liabilities | 12,541 | 8,565 |
Total liabilities | 38,415 | 77,918 |
Net assets/(liabilities) | 88,002 | (14,971) |
Equity | ||
Issued capital | 1,755 | 1,017 |
Share premium | 247,460 | 161,785 |
Other capital reserves | 129,835 | 128,374 |
Employee Benefit Trust shares | (1,140) | (1,305) |
Other reserves | 7,401 | 5,001 |
Accumulated losses | (296,968) | (309,693) |
Translation reserve | (341) | (150) |
Total equity | £ 88,002 | £ (14,971) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Profit/(loss) before tax | £ 14,241 | £ (166,450) | £ (41,118) |
Adjustments to reconcile profit/(loss) before tax to net cash flows: | |||
Depreciation of property, plant and equipment | 642 | 1,599 | 1,577 |
Share-based payments expense | 3,302 | 1,558 | 1,636 |
Net foreign exchange loss/(gain) | 954 | 1,821 | (483) |
Increase/(decrease) in provisions and other liabilities | 1,385 | 162 | (517) |
Finance income | (1) | (44) | (377) |
Finance costs | 3,797 | 6,226 | 4,606 |
[Other non-cash movements] | 156 | ||
Modification gain on bank loan | (456) | ||
Gain on bargain purchase | (3,681) | ||
Gain on lease modification | (957) | ||
Fair value remeasurement on contingent consideration | 354 | ||
Fair value remeasurement on warrants | (40,039) | 109,849 | (875) |
(Gain)/loss on disposal of intangible assets | (113) | 10,872 | |
Out-license of intangible asset | 9,457 | ||
Working capital adjustments: | |||
(Increase)/decrease in receivables and prepayments | (589) | 141 | (936) |
Decrease in trade and other payables and accruals | (1,256) | (3,551) | (6,730) |
Tax credits received | 2,825 | 10,433 | 1,069 |
Net cash flows used in operating activities | (5,239) | (28,341) | (45,931) |
Investing activities | |||
Acquisition of subsidiary | (354) | 10,074 | |
Purchase of property, plant and equipment | (535) | (16) | (21) |
Disposal of intangible assets (net of transaction costs) | 113 | 1,821 | |
Proceeds from sale of short-term investments | 32,865 | ||
Interest earned | 1 | 44 | 377 |
Net cash flows (used in)/from investing activities | (421) | 1,495 | 43,295 |
Financing activities | |||
Proceeds from issuance of ordinary shares | 78,532 | 20,136 | 0 |
Transaction costs on issuance of shares | (234) | (1,307) | (761) |
Proceeds from exercise of employee share options | 46 | 0 | |
Proceeds from issuance of convertible loan notes | 44,375 | ||
Transaction costs issuance of convertible loan notes | (3,598) | ||
Repayment of bank loans | (19,802) | ||
Transaction costs related to loans and borrowings | (81) | 0 | |
Interest paid on bank loan | (2,900) | (1,739) | |
Purchase of treasury shares | (998) | ||
Payment of lease liabilities | (692) | (2,086) | (2,212) |
Net cash flows from/(used in) financing activities | 77,652 | 34,737 | (5,710) |
Net increase/(decrease) in cash and cash equivalents | 71,992 | 7,891 | (8,346) |
Cash and cash equivalents at January 1 | 23,469 | 16,347 | 25,042 |
Effect of exchange rate changes | (1,165) | (769) | (349) |
Cash and cash equivalents at December 31 | £ 94,296 | £ 23,469 | £ 16,347 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity £ in Thousands | GBP (£) | Share options [member]GBP (£) | LTIPs [member]GBP (£) | Conversion of loan note [member]GBP (£) | Conversion of loan note [member]USD ($) | April 23, 2019 [member]GBP (£) | Issued capital [member]GBP (£) | Issued capital [member]Conversion of loan note [member]GBP (£) | Issued capital [member]Novartis bonus shares [member]GBP (£) | Issued capital [member]April 23, 2019 [member]GBP (£) | Share premium [member]GBP (£) | Share premium [member]Conversion of loan note [member]GBP (£) | Share premium [member]Novartis bonus shares [member]GBP (£) | Share premium [member]April 23, 2019 [member]GBP (£) | Other capital reserves [member]GBP (£) | Other capital reserves [member]Share options [member]GBP (£) | Other capital reserves [member]LTIPs [member]GBP (£) | Other capital reserves [member]Conversion of loan note [member]USD ($) | Other capital reserves [member]Novartis bonus shares [member]GBP (£) | Other capital reserves [member]April 23, 2019 [member]GBP (£) | Employee benefit trust [member]GBP (£) | Other reserves [member]GBP (£) | Accumulated losses [member]GBP (£) | Translated reserveGBP (£) |
Beginning balance at Dec. 31, 2018 | £ 32,771 | £ 214 | £ 118,492 | £ 18,593 | £ (307) | £ 7,000 | £ (111,221) | |||||||||||||||||
Other comprehensive income | (499) | £ (499) | ||||||||||||||||||||||
Loss for the period | (34,844) | 0 | (34,844) | |||||||||||||||||||||
Total comprehensive income/(loss) for the year, attributable to equity holders of the parent | (35,343) | (34,844) | (499) | |||||||||||||||||||||
Issuance of share capital | £ 40,892 | £ 74 | £ 40,818 | |||||||||||||||||||||
Issuance of share capital | £ 2,369 | £ 3 | £ 3 | £ 2,366 | £ 1,587 | £ (1,590) | ||||||||||||||||||
Share-based payments | £ 1,543 | £ 93 | £ 1,543 | £ 93 | ||||||||||||||||||||
Issuance on conversion of loan notes | $ | $ (310) | $ (310) | ||||||||||||||||||||||
Transaction costs on issuance of share capital | £ (761) | £ (761) | ||||||||||||||||||||||
Purchase of treasury shares | (998) | (998) | ||||||||||||||||||||||
Ending balance at Dec. 31, 2019 | 40,256 | 294 | 121,684 | 59,147 | (1,305) | 7,000 | (146,065) | (499) | ||||||||||||||||
Other comprehensive income | 349 | 349 | ||||||||||||||||||||||
Loss for the period | (163,628) | (163,628) | 0 | |||||||||||||||||||||
Total comprehensive income/(loss) for the year, attributable to equity holders of the parent | (163,279) | (163,628) | 349 | |||||||||||||||||||||
Issuance of share capital | 16,937 | 347 | 18,715 | (2,125) | ||||||||||||||||||||
Share-based payments | 1,558 | 1,558 | ||||||||||||||||||||||
Conversion of loan notes and warrants | 55,949 | 375 | 21,386 | 34,188 | ||||||||||||||||||||
Reclassification of loan notes embedded derivative | 33,481 | 33,481 | ||||||||||||||||||||||
Conversion of warrants | 127 | 1 | 126 | |||||||||||||||||||||
Ending balance at Dec. 31, 2020 | (14,971) | 1,017 | 161,785 | 128,374 | (1,305) | 5,001 | (309,693) | (150) | ||||||||||||||||
Other comprehensive income | (191) | (191) | ||||||||||||||||||||||
Loss for the period | 12,725 | 12,725 | ||||||||||||||||||||||
Total comprehensive income/(loss) for the year, attributable to equity holders of the parent | 12,534 | 12,725 | (191) | |||||||||||||||||||||
Issuance of share capital | 79,210 | 601 | 78,609 | |||||||||||||||||||||
Share-based payments | 3,302 | 3,302 | ||||||||||||||||||||||
Exercise of share option | 46 | (119) | 165 | |||||||||||||||||||||
Conversion of loan notes and warrants | 7,881 | 137 | 7,066 | (1,722) | 2,400 | |||||||||||||||||||
Ending balance at Dec. 31, 2021 | £ 88,002 | £ 1,755 | £ 247,460 | £ 129,835 | £ (1,140) | £ 7,401 | £ (296,968) | £ (341) |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Corporate information | 1. Corporate information Mereo BioPharma Group plc (the “Company” or “Mereo”) is a clinical-stage, United Kingdom (“UK”) based biopharmaceutical company focused on oncology and rare diseases. The Company is a public limited company incorporated and domiciled in the UK, and registered in England, with shares publicly traded on the Nasdaq Global Market via American Depositary Shares (“ADSs”) under the ticker symbol “MREO”. The Company’s ordinary shares were previously admitted to trading on the AIM market of London Stock Exchange plc with admission cancelled with effect on December 18, 2020. The Company’s registered office is located at Fourth Floor, 1 Cavendish Place, London, W1G 0QF, United Kingdom. The consolidated financial statements of Mereo BioPharma Group plc and its subsidiaries for the year ended December 31, 2021 were authorized for issue in accordance with a resolution of the Directors on |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Significant accounting policies | 2. Significant accounting policies Basis of preparation The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements are presented in pound sterling (“£”), which is the presentational currency of the Company. The functional currencies of consolidated subsidiaries are pound sterling and US dollars (“$”). All amounts disclosed in the consolidated financial statements and notes have been rounded to the nearest thousand, unless otherwise stated. The financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Basis of consolidation The consolidated financial information comprises the financial statements of Mereo BioPharma Group plc and its subsidiaries as at December 31, 2021. Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. Intercompany transactions, balances and unrealized gains on transactions between subsidiaries are eliminated in preparing the consolidated financial statements. Accounting policies of subsidiaries are consistent with the policies adopted by the Company. The Company has an employee share trust to facilitate share transactions pursuant to employee share schemes. Although the trust is a separate legal entity from the Company, it is consolidated into the Company’s results in accordance with the IFRS 10 rules on special purpose vehicles. The Company is deemed to control the trust principally because the trust cannot operate without the funding the Company provides. Segmental information The Company has one operating segment. The Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The Company has a single portfolio of product candidates, with only direct research and development expenses monitored at a product candidate level. The CODM makes decisions over resource allocation at an overall portfolio level and the Company’s financing is managed and monitored on a consolidated basis. Following the acquisition of Mereo BioPharma 5, Inc. (formerly OncoMed Pharmaceuticals, Inc. or “OncoMed”) in 2019, non-current non-current Going concern The going concern basis has been applied in these consolidated financial statements as the Company has adequate resources to meet its liabilities as they fall due for the foreseeable future and at least 12 months from the date of these consolidated financial statements. The Company expects to incur significant operating losses for the foreseeable future as it continues its research and development efforts, seeks to obtain regulatory approval of its product candidates and pursues any future product candidates the Company may develop. Until such time as the Company can generate significant revenue from product sales, or other commercial revenues, if ever, or through licensing and/or collaboration agreements for its oncology or rare disease product candidates, the Company will seek to finance its operations through a combination of public or private equity or debt financings or other sources. Summary of significant accounting policies a) Revenue The Company’s ordinary business activities are the development of product candidates to key clinical milestones and either strategically partnering them or further developing such product candidates through regulatory approval and potentially commercialization. The Company may enter into a range of different agreements with third parties, including but not limited to: (i) licensing agreements where the global rights to a product candidate are licensed to a partner; and (ii) collaboration agreements where rights to a product candidate are licensed to a partner but the Company retains certain rights, for example to further develop or commercialize the product candidate in specified geographical territories. Under both licensing and collaboration agreements, rights to product candidates are provided to a partner typically in exchange for consideration in the form of upfront payments and/or development, regulatory, commercial or other similar milestones, and royalties on commercial sales, should regulatory approval be obtained for the product candidates. Revenue includes income from licensing and collaboration agreements. Consideration received up front is recognized at the point in time in which the right to use an intangible asset is transferred and further payments received are recognized upon the achievement of specified development, regulatory, commercial or other similar milestones. For agreements with a right to access an intangible asset, revenue is recognized over time, typically on a straight-line basis over the life of the license or collaboration agreement. When there are other performance obligations in such agreements, the consideration is allocated using the residual approach and recognized when the performance obligations are satisfied. Income from development, regulatory, commercial or similar milestones is recognized when considered highly probable that a significant reversal will not occur. Timing of the recognition of such milestones are considered to be a key judgment, as they are often dependent on third parties. In general, for milestones which are subject to the decisions of third parties (e.g. the acceptance or approval of a filing by a regulatory authority), the Company recognizes milestone income when the decision occurs. We do not currently have any approved product candidates. Accordingly, we have not generated any commercial sales revenue during the year. Intangible assets out-licensed under a license or collaboration agreement are recorded within “Cost of revenue” in the Company’s consolidated statement of comprehensive income/(loss) based on an allocation of cost or value of the rights that have been out-licensed. b) Research and development (R&D) expenses Expenditure on product development is capitalized as an intangible asset and amortized over the expected useful economic life of the product candidate concerned. Capitalization commences from the point at which technical feasibility and commercial viability of the product candidate can be demonstrated and the Company is satisfied that it is probable that future economic benefits will result from the product candidate once completed. Capitalization ceases when the product candidate receives regulatory approval for launch. No such costs have been capitalized to date. Expenditure on R&D activities that do not meet the criteria for capitalization, including ongoing costs associated with acquired intellectual property rights and intellectual property rights generated internally by the Company, is recognized in the consolidated statement of comprehensive income as incurred. Intellectual property and in-process c) Taxation Tax expense recognized in the consolidated statement of comprehensive income/(loss) comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity. Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the consolidated financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted, or substantively enacted, by the end of the reporting period in the jurisdictions in which the Company operates. Amounts receivable in respect of research and development tax credits are recognized in the consolidated financial statements provided there is sufficient evidence that the amounts are recoverable. These credits are recognized within income tax in the consolidated statement of comprehensive income/(loss). A provision is recognized for matters in which the tax determination is uncertain but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable. Deferred tax Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred income tax assets are recognized for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered. Deferred tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply in the year when the asset or liability is realized, based on tax rates (and tax laws) enacted or substantively enacted at the end of the reporting period. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. d) Foreign currencies Items included in the consolidated financial statements are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in pound sterling (“£”), which is the presentational currency of the Company. The functional currencies of consolidated subsidiaries are pound sterling and US dollars (“$”). Transactions in foreign currencies are initially recorded by the Company at the rate prevailing on the date the transaction first qualifies for recognition. Differences arising on settlement or translation of monetary items as well as gains or losses on the retranslation of foreign currency balances at the period-end The results and financial position of subsidiaries that have a functional currency different from the presentational currency of the Company are translated into the presentational currency (pound sterling). The assets and liabilities of such entities are translated into pound sterling at the rate of exchange prevailing at the balance sheet date. Income and expenses are translated at the average rate for the period. Fair value adjustments arising on acquisition of such entities are treated as assets and liabilities of the relevant entity and translated into pound sterling at the closing rate. The exchange differences arising on translation for consolidation are recognized in other comprehensive income/(loss). e) Property, plant and equipment Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment if the recognition criteria are met. All other repair and maintenance costs are recognized in profit or loss as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Useful lives of various property, plant and equipment are as follows: • Leasehold improvements shorter of lease term or ten years • Office equipment five years • IT equipment three years Property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of comprehensive income/(loss) when the asset is derecognized. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed annually and adjusted prospectively, if appropriate. f) Business combinations Business combinations are accounted for using the acquisition method of accounting. At the date of acquisition, the Company initially recognizes the fair value of the identifiable assets acquired, the liabilities assumed and any non-controlling The consideration transferred is measured at fair value at the date of acquisition. The excess of the consideration transferred over the fair value of net identifiable assets of the business acquired is recorded as goodwill, unless the amount of consideration transferred is less than the fair value of net identifiable assets of the business acquired in which case the difference is recognized directly in the consolidated statement of comprehensive income/(loss) as a bargain purchase. A valuation is performed of assets and liabilities assumed on each acquisition accounted for as a business combination based on our best estimate of fair value. Where the settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value. Contingent consideration is classified either as equity or a financial liability and is recognized at fair value on the acquisition date. Amounts classified as a financial liability are subsequently remeasured to fair value in accordance with IFRS 9 (Financial Instruments), with changes in fair value recognized in the consolidated statement of comprehensive income/(loss) as an administrative expense. Directly attributable acquisition-related costs are expensed as incurred within the consolidated statement of comprehensive income/(loss). g) Leases Effective January 1, 2019, the Company adopted IFRS 16 (Leases) using the modified retrospective approach. The Company assesses whether a contract is, or contains, a lease at inception of the contract. The Company recognizes a right-of-use The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of fixed lease payments, less any lease incentives receivable. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use The right-of-use The right-of-use Right-of-use • Right-of-use six • Right-of-use one When the Company is an intermediate lessor, it accounts for the head lease and the sub-lease sub-lease fer right-of-use h) Intangible assets Intangible assets are initially recorded at cost which has been determined as the fair value of the consideration paid and payable. Assets that have been acquired through a business combination are initially recorded at fair value. The fair value of consideration is regularly reviewed based on the probability of achieving contractual milestones. Refer to policy on provision for deferred cash consideration below. Where the consideration paid or payable is in shares, the cost is measured in accordance with IFRS 2 (Share Based Payments). Intangible assets that are not yet available for use are reviewed for impairment at each reporting date by allocating the assets to the cash-generating units to which they relate. The estimated useful life is the lower of the legal duration and economic useful life. The estimated useful lives of intangible assets are reviewed at least annually. Intangible assets are amortized from the date they are available for commercial use. No amortization has been recognized to date. An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized. i) Financial instruments Financial assets and liabilities are recognized in the consolidated balance sheet only when the Company becomes party to the contractual provisions of the instrument. Financial assets On initial recognition, a financial asset is classified into one of three primary measurement categories: • Amortized cost; • Fair value through other comprehensive income (“FVOCI”); or • Fair value through profit or loss (“FVTPL”). The initial classification into a primary measurement category depends on the nature and purpose of the financial asset. For short-term investments, interest income and impairment gains or losses are recognized directly in the consolidated statement of comprehensive income. The difference between cumulative fair value gains or losses and the cumulative amounts recognized in the consolidated statement of comprehensive income/(loss) is recognized in other comprehensive income until derecognition, when the amounts in other comprehensive income are reclassified to the consolidated statement of comprehensive income/(loss). Classification as debt or equity Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Embedded derivatives An embedded derivative is a component of a hybrid contract that also includes a non-derivative Convertible loan notes Convertible loan notes are regarded as compound instruments consisting of a liability component and an equity component. At the date of issue, the fair value of the liability component is estimated using a discount rate for an equivalent liability without the conversion feature. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or at the instrument’s maturity date. The difference between the proceeds from the issue of the convertible loan note and the fair value assigned to the liability component is included in equity and not subsequently remeasured. Upon conversion, the amount initially recognized in “Other capital reserves” will be transferred to “Share premium”. Financial liabilities All financial liabilities are measured subsequently at amortized cost using the effective interest method or at FVTPL. Borrowings (including interest-bearing loans) are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Under the effective interest method, amortization is included as a finance cost in the consolidated statement of comprehensive income/(loss). Non-substantial Borrowings are derecognized from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The warrant instruments are recorded at fair value, with changes in the fair value recognized in the consolidated statement of comprehensive income/(loss), where the terms of the warrant instruments allow for cashless exercise. j) Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities. • Level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. • Level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. k) Impairment of non-financial Further disclosures relating to impairment of non-financial • Disclosures for significant assumptions Note 3 • Property, plant and equipment Note 12 • Intangible assets not yet available for use Notes 13 and 14 At each reporting date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax Impairment losses are recognized in the consolidated statement of comprehensive income/(loss) in expense categories consistent with the function of the impaired asset. An assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated statement of comprehensive income/(loss) unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase. l) Cash and short-term deposits Cash and short-term deposits in the balance sheet comprise cash at banks and on hand along with short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value. m) Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the consolidated statement of comprehensive income/(loss) net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax Where contingent payments relate to future use of the in-licensed n) Provision for deferred cash consideration Provision for deferred cash consideration consists of future payments which are contractually committed but not yet certain. In respect of products which are not yet approved, such deferred cash consideration excludes potential milestones, royalties or other payments that are deemed to be so uncertain as to be unquantifiable. Deferred cash consideration is recognized as a liability with the amounts calculated as the risk adjusted net present value of anticipated deferred payments. The provision is reviewed at each balance sheet date and adjusted based on the likelihood of contractual milestones being achieved and therefore the deferred payment being settled. Increases in the provision relating to changes in the probability are recognized as an intangible asset. Increases in the provision relating to the unwinding of the time value of money are recognized as a finance expense. o) Share-based payments Employees (including executives) and non-executive non-executive Incentives in the form of shares are provided to employees and non-executive In accordance with IFRS 2 Share-based Payments (“IFRS 2”), charges for these incentives are expensed through the consolidated statement of comprehensive income/(loss) on a straight-line basis over their vesting period, based on the Company’s estimate of shares that will eventually vest. The total amount to be expensed is determined by reference to the fair value of the options or awards at the date they were granted. For LTIP shares, the fair value on grant date excludes the impact of any non-market Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. In accordance with IFRS 2, the cancellation of share options is accounted for as an acceleration of the vesting period and therefore any amount unrecognized that would otherwise have been charged in future accounting periods is recognized immediately. When options are forfeited, the accounting expense for any unvested awards is reversed. p) Costs of issuing capital Incremental costs incurred and directly attributable to the offering of equity securities are deducted from the related proceeds of the offering. The net amount is recorded as share premium in the period when such shares are issued. Where such expenses are incurred prior to the offering they are recorded in prepayments until the offering completes. Other costs incurred in such offerings are expensed as incurred and included in general and administrative expenses. q) Employee Benefit Trust The Company operates an Employee Benefit Trust (“EBT”), the Mereo BioPharma Group plc Employee Benefit Trust. The EBT holds ADS’s to satisfy the exercise of options under the Company’s share-based incentive schemes (Note 26). The EBT is a Jersey-based trust which was initially funded by a loan from the Company, which it utilized to purchase shares in sufficient quantity to fulfill the envisaged awards. The Company will issue ordinary shares to a custodian for conversion by a depositary bank to ADS’s and delivery to the EBT. These ordinary shares will be deducted from the shareholders’ funds on the consolidated balance sheet at their nominal value. Shares held by the EBT are included in the consolidated balance sheet as a reduction in equity. r) Pension contribution costs Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions. |
Significant judgments, estimate
Significant judgments, estimates and assumptions | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Significant judgments, estimates and assumptions | 3. Significant judgments, estimates and assumptions The preparation of these consolidated financial statements requires the management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates and judgments on historical experience and on various other assumptions that it considers to be reasonable. Actual results may differ from these estimates under different assumptions or conditions. Judgments a) Revenue Judgment is required to determine the appropriate accounting policy for the license and collaboration agreement with Ultragenyx Pharmaceutical, Inc. (“Ultragenyx”). Management has determined that the upfront proceeds from the license and collaboration agreement represent proceeds from the Company’s ordinary business activities and, therefore, represent revenue within the scope of IFRS 15, Revenue from Contracts with Customers. Judgment is also required to determine the portion of the carrying amount of the intangible asset to derecognize, relative to the value retained, as a result of the license and collaboration agreement with Ultragenyx. b) Impairment of intangible assets and property, plant and equipment An assessment was made in respect of indicators of impairment in the carrying value of the Company’s intangible assets (see Note 14), right-of-use If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is recognized as an impairment in the consolidated statement of comprehensive income/(loss). The assessment of intangible assets involves a number of significant judgments regarding the likelihood of successful product approval, the costs of attaining approval, the estimated useful life of intangible assets following commercialization and the subsequent commercial profitability of the product once approved. c) Incremental borrowing rate and lease modification Future lease payments are discounted using the interest rate implicit in the lease, or, if that rate cannot be readily determined, the incremental borrowing rate. IFRS 16 (Leases) defines the incremental borrowing rate as the rate of interest a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of similar value to the right-of-use For the year ended December 31, 2020, the determination of an appropriate discount rate has a significant effect on the lease liabilities recognized. For the current lease portfolio, the incremental borrowing rate was determined based on relevant and available information as the interest rate implicit in the lease arrangements cannot be readily determined. In addition to the determination of an appropriate discount rate, the Company was also required to assess the lease term for qualifying leases. The determination of the lease term is judgmental as for certain qualifying leases held by the Company, the contract includes an extension option beyond the non-cancellable In August 2020, a lease for office space was modified to reduce the size of the office space leased. At the time of this lease modification, judgment was applied in determining the new lease term and remeasuring the lease liability by discounting the revised lease payments using a revised incremental borrowing rate. d) Identification and classification of financial instruments On June 3, 2020, the Company completed a private placement transaction (Note 19) which comprised the issue of ordinary shares, Loan Notes and Warrants. Judgment is applied under IAS 32 (Financial instruments: Presentation) in determining the features of the identified financial instruments on both the transaction date and the date of the general meeting at which Resolutions relating to the private placement were voted on by the Shareholders, to determine the appropriate recognition in accordance with IAS 32. In applying this judgment, management considered the probability of passing the Resolutions at the general meeting and the likelihood of a change of control prior to the passing of the Resolutions, which impact the settlement terms of the financial instruments, and the classification of the financial instruments as liabilities or equity. Management concluded that a change of control event was uncertain and outside of the Company’s control, and therefore the conversion feature on the Loan Notes at the transaction date represented a financial liability with an embedded derivative for the conversion option. On the passing of the Resolutions, judgment was applied to determine that the effective terms of the Loans Notes changed and the embedded derivative financial liability representing the conversion option was reclassified to equity at its fair value, with no associated gain or loss recognized in profit or loss. e) Business combination On April 23, 2019, the Company obtained a 100% controlling interest in Mereo BioPharma 5, Inc. (formerly OncoMed), a company based in the United States (“US”). The value of the net identifiable assets acquired was £44.6 million. Total consideration paid, being the fair value of 24.8 million ordinary shares of the Company, was £40.9 million. As the Company acquired Mereo BioPharma 5, Inc. for an amount less than the fair market value of the net assets acquired, a gain on bargain purchase of £3.7 million was recognized. Judgment was applied under IFRS 3 (Business Combinations) in determining whether a transaction meets the definition of a business combination, and so accounted for in accordance with its requirements. In applying this judgement, management has considered the underlying economic substance of the transaction in addition to the contractual terms. Our assessment is that Mereo BioPharma 5, Inc. meets the definition of a ‘business’ and the transaction has therefore been accounted for as a business combination. Estimates and assumptions a) Deferred consideration Deferred consideration represents contingent cash consideration and is recognized as a provision at each balance sheet date, to the extent its amount is quantifiable at the inception of the arrangement (see Note 18). The amount provided is based on estimates regarding the timing and progress of the related research and development activities (see Note 24). Deferred consideration in the form of shares is recognized as a share-based payment when it is probable that shares will be transferred. b) Fair value of financial instruments As part of the private placement transaction (Note 19), the Company performed a valuation of the fair value of the identified financial instruments including the embedded derivative and the warrants on the transaction date and the general meeting date. For qualifying financial instruments, the fair value is reassessed at each balance sheet date. Specific consideration was applied to the estimation of implied share price on the transaction date, the volatility, credit spread and discount rate (see Note 24). c) Contingent consideration The Company makes a provision for the estimated fair value of amounts payable to the former shareholders of Mereo BioPharma 5, Inc. under the Contingent Value Rights Agreement (“CVR”), which is accounted for as a contingent consideration liability. At December 31, 2021, the Company estimates the fair value of the contingent consideration liability to be £nil (2020: nil). Total potential payments under the CVR on a gross, undiscounted basis, are approximately £58.6 million ($80.0 million). The estimated contingent consideration payable is based on a risk-adjusted, probability-based scenario. Under this approach the likelihood of future payments being made to the former shareholders of Mereo BioPharma 5, Inc. under the CVR is considered. The estimate could materially change over time in line with the development plan and potential subsequent commercialization of the product. |
Changes in accounting policies
Changes in accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Changes in accounting policies | 4. Changes in accounting policies a) New standards, interpretations and amendments adopted from January 1, 2021 In the current year, the Company has applied the below amendments to IFRS issued by the IASB that are effective for an annual period that begins on or after January 1, 2021. Their adoption has not had any material impact on the disclosures or on the amounts reported in these consolidated financial statements: • Amendments to IFRS 4 Insurance Contracts • Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest Rate Benchmark Reform – Phase 2 • Amendments to IFRS 16 Covid-19 b) New standards, interpretations and amendments not yet effective At the date of authorization of these consolidated financial statements, the Company has not applied the following new and revised IFRS that have been issued but are not yet effective: Effective January 1, 2022 • Annual Improvements to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41) • Amendments to IAS 16 – Proceeds before Intended Use • Amendments to IAS 37 – Onerous Contracts – Cost of Fulfilling a Contract • Amendments to IFRS 3 Effective January 1, 2023 • Amendments to IAS 1 – Classification of Liabilities as Current or Non-current • Amendments to IFRS 17 – Insurance Contracts • Amendments to IAS 12 – Deferred tax related to assets and liabilities arising from a single transaction • Amendments to IAS 8 – Definition of accounting estimates • Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of accounting policies The Company does not expect the adoption of these IFRS amendments will have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions. |
Group information
Group information | 12 Months Ended |
Dec. 31, 2021 | |
Investments accounted for using equity method [abstract] | |
Group information | 5. Group information Information about subsidiaries The consolidated financial statements of the Company include: Name Principal activities Country of % Equity % Equity Mereo BioPharma 1 Limited Pharmaceutical R&D UK 100 100 Mereo BioPharma 2 Limited Pharmaceutical R&D UK 100 100 Mereo BioPharma 3 Limited Pharmaceutical R&D UK 100 100 Mereo BioPharma 4 Limited Pharmaceutical R&D UK 100 100 Mereo BioPharma Ireland Limited Pharmaceutical R&D Ireland 100 100 Mereo BioPharma 5, Inc. Pharmaceutical R&D U.S. 100 100 Navi Subsidiary, Inc. Pharmaceutical R&D U.S. 100 100 Mereo US Holdings, Inc. Holding company U.S. 100 100 Mereo BioPharma Group plc Employee Benefit Trust Employee share scheme Jersey – – The registered office of Mereo BioPharma 1 Limited, Mereo BioPharma 2 Limited, Mereo BioPharma 3 Limited and Mereo BioPharma 4 Limited is located at Fourth Floor, 1 Cavendish Place, London W1G 0QF. The registered office of Mereo BioPharma Ireland Limited is Rocktwist House, Block 1, Western Business Park, Shannon, County Clare, V14 FW97, Republic of Ireland. Mereo US Holdings Inc. was incorporated on December 3, 2018 for the sole purpose of effecting the business combination with Mereo BioPharma 5, Inc. (formerly OncoMed Pharmaceuticals, Inc.) on April 23, 2019. The registered office of Mereo US Holdings Inc., Mereo BioPharma 5, Inc. and its wholly owned subsidiary, Navi Subsidiary, Inc., is 251 Little Falls Drive, City of Wilmington, County of New Castle, Delaware 19808, US. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Revenue From Contracts With Customers [Abstract] | |
Revenue | 6. Revenue The Company recognized upfront proceeds of £36.5 million ($50.0 million) from the license and collaboration agreement with Ultragenyx for setrusumab as revenue in the year ended December 31, 2021. The variable consideration relating to future milestones and sales royalties will be recognized in the statement of comprehensive income/(loss) when the milestones are achieved or the underlying commercial sales are made, in the event regulatory approval is achieved. As a consequence of the license and collaboration agreement with Ultragenyx and in accordance with terms of the 2015 asset purchase with Novartis, the Company made a payment to Novartis of £7.2 million ($10.0 million). The payment included a deduction for costs of £2.4 million which was deferred and will be recognized in the statement of comprehensive income/(loss) when the associated costs are incurred. In the year ended December 31, 2021, £1.1 million of these deductions were recognized within “Cost of revenue” in the consolidated statement of comprehensive income/(loss). As of December 31, 2021 the remaining balance to be recognized of £1.3 million is included within “Other liabilities” in the consolidated balance sheet. See Note 13 for additional details. |
Profit_(loss) before tax
Profit/(loss) before tax | 12 Months Ended |
Dec. 31, 2021 | |
Schedule Of Detailed Information About Profit Before Tax [Abstract] | |
Profit/(loss) before tax | 7. Profit/(loss) before tax Profit/(loss) before tax is stated after charging: Year ended December 31, 2021 2020 2019 Fees payable to the Company’s Auditor for the audit of the consolidated accounts 358 449 514 Fees payable to the Company’s Auditor for other services: Audit of subsidiary accounts 46 49 45 Audit-related assurance services 57 318 311 Gain on modification of lease – (957 ) – Income from sub-lease – (646 ) (855 ) Depreciation of right-of-use 570 1,531 1,505 Depreciation (excluding right-of-use 72 68 52 Gain on modification of lease, sub-lease |
Employees
Employees | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Employees | 8. Employees The average monthly number of persons employed by the Company during the year was: Year ended December 31, 2021 2020 2019 By activity: Administrative 26 22 28 Research and development 19 17 18 Total 45 39 46 Total compensation costs for persons employed by the Company (including Directors) during the year was: Year ended December 31, 2021 2020 2019 Included in research and development expenses: Salaries 4,126 3,046 2,824 Social security costs 402 397 110 Pension contributions 73 66 62 Share-based payment expenses 1,210 446 152 Included in administrative expenses: Salaries 3,763 4,832 3,384 Social security costs 418 681 (124 ) Pension contributions 99 89 114 Share-based payment expenses 2,092 1,112 1,485 Total 12,183 10,669 8,007 Total compensation costs for Directors during the year was: Year ended December 31, 2021 2020 2019 Salaries and fees 810 1,114 1,106 Benefits in kind 9 14 17 Pension contributions 58 61 25 Bonus 239 538 294 Total 1,116 1,727 1,442 During 2021, one Director was a member of a defined contribution pension scheme (2020: one, 2019: two). Further details concerning the remuneration of key management personnel can be found in Note 27. |
Other income_expenses and adjus
Other income/expenses and adjustments | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Other income/expenses and adjustments | 9. Other income/expenses and adjustments Finance income Year ended December 31, 2021 2020 2019 Bank interest earned 1 5 42 Interest earned on short-term investments – – 141 Gain on short-term investments – 39 194 Total 1 44 377 Finance costs Year ended December 31, 2021 2020 2019 Interest on convertible loan notes (3,549 ) (2,241 ) (20 ) Interest on bank loan – (2,900 ) (1,739 ) Interest on lease liabilities (227 ) (1,085 ) (1,314 ) Accreted interest on bank loan – – (1,523 ) Modification gain on bank loan – – 456 Discounting of provision for deferred cash consideration (225 ) (157 ) (221 ) Other (21 ) – (10 ) Total (4,022 ) (6,383 ) (4,371 ) Changes in the fair value of financial instruments Year ended December 31, 2021 2020 2019 Changes in the fair value of warrants – private placement 39,535 (45,977 ) – Changes in the fair value of warrants – bank loan 504 (714 ) 875 Changes in the fair value of embedded derivative – (63,158 ) – Total 40,039 (109,849 ) 875 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Taxation | 10. Taxation Year ended December 31, 2021 2020 2019 Tax charge (1,516 ) – – UK corporation tax R&D credit – 2,822 5,149 Other tax income – – 1,125 Total (1,516 ) 2,822 6,274 U.K. The Company is entitled to claim tax credits in the United Kingdom under the U.K. medium-sized U.S. As at December 31, 2021, £0.8 million is receivable related to Alternative Minimum Tax (“AMT”) credits, recognized as other taxes recoverable within the consolidated balance sheet. The Company generates R&D tax credits for U.S. federal and state purposes. In respect of these R&D tax credits, no deferred tax assets have been recognized in any periods presented. As of million, representing approximately of these historic R&D tax losses claimed. Reconciliation of effective tax rate Year ended December 31, 2021 £’000s 2020 £’000s 2019 £’000s Profit/(loss) on ordinary activities before income tax 14,241 (166,450 ) (41,118 ) Tax on profit at standard U.K. (2,706 ) 31,626 7,812 Expenses not deductible for income tax purposes (permanent differences) (708 ) (13,270 ) (317 ) Income not taxable 78 4 – Temporary timing differences (65 ) – (343 ) R&D relief uplift 1,435 1,214 2,540 Losses (unrecognized) (345 ) (14,479 ) (4,380 ) Deferred income from MBG loan guarantee costs – – (54 ) Foreign tax 505 184 – Differences in overseas tax rates 286 261 340 Derecognition of deferred tax – (2,686 ) – Gain on bargain purchase – – 699 Other 4 (32 ) (23 ) Tax (charge)/credit for the year (1,516 ) 2,822 6,274 Deferred tax The analysis of unrecognized deferred tax is set out below: Year ended December 31, 2021 £’000s 2020 £’000s 2019 £’000s Losses 44,683 37,021 19,443 Loan relationships 73 421 – U.S. 10,557 9,880 10,032 Accruals – – 947 Fixed assets – 414 400 Share options 151 55 – Other U.S. 31 86 – Other – 137 202 Temporary differences 56 18 4 Net deferred tax asset (unrecognized) 55,551 48,032 31,028 The analysis of recognized deferred tax is set out below: At January 1, Recognized At £’000s £’000s £’000s Deferred tax liabilities Intangible asset and right-of-use (96 ) 76 (20 ) Deferred tax asset Net operating losses and lease liability 96 (76 ) 20 Net deferred tax asset/(liability) A deferred tax asset on losses has been recognized up to the level of the deferred tax liability, resulting in a net deferred tax liability of £nil. The remaining deferred tax assets, as set out in the table above, have not been recognized as there is uncertainty regarding when suitable future profits against which to offset the accumulated tax losses will arise. U.K. The deferred tax assets have not been recognized as there is uncertainty regarding when suitable future profits against which to offset the accumulated tax losses will arise. There is no expiration date for the accumulated tax losses. The standard rate of corporation tax applied to the reported profit/(loss) before tax is 19% (2020: 19%). The Finance Act 2021, which was substantively enacted on May 24, 2021, included provisions to increase the standard rate of tax from 19% to 25%, effective from April 1, 2023. As a result, U.K. At December 31, 2021, the Company had U.K. U.S. U.S. For Mereo BioPharma 5, Inc, with respect to accumulated tax losses carried forward prior to its acquisition by the Company, there is a change of control restriction which will limit the amount available in any one year. At December 31, 2021, the Company had U.S. U.S. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Earnings per share | 11. Earnings per share Basic profit/(loss) per share is calculated by dividing the profit/(loss) attributable for the year to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted loss per share is based on dividing the profit attributable for the year, adjusted for the effect of diluted ordinary shares, by ordinary share equivalents, which includes the weighted average number of ordinary shares outstanding and the effect of dilutive ordinary share equivalents. Year ended December 31, 2021 2020 2019 Numerator – Basic earnings per share (£’000s): Profit/(loss) attributable to equity holders of the parent 12,725 (163,628 ) (34,844 ) Denominator – Basic earnings per share: Weighted average number of ordinary shares 527,818,648 338,953,141 89,424,476 Profit/(loss) per share – basic (£) 0.02 (0.48 ) (0.39 ) Numerator – Diluted earnings per share (£’000s): Profit/(loss) attributable to equity holders of the parent 12,725 (163,628 ) (34,844 ) Effect of dilutive ordinary shares (38,523 ) — — Numerator – Diluted earnings per share (25,798 ) (163,628 ) (34,844 ) Denominator – Diluted earnings per share: Number of ordinary shares used for basic earnings per share 527,818,648 338,953,141 89,424,476 Weighted average effect of dilutive ordinary shares 27,457,163 — — Weighted average number of diluted ordinary shares outstanding 555,275,811 338,953,141 89,424,476 Loss per share – diluted (£) (0.05 ) (0.48 ) (0.39 ) For the year ended December 31, 2021, the effect of dilutive ordinary shares, net of current year tax charge, is related to Company’s outstanding warrants. For the years ended December 31, 2020 and 2019, share options, convertible loan notes and warrants were considered to be anti-dilutive as they would have decreased the loss per share and were therefore excluded from the calculation of diluted loss per share. Therefore, the weighted average shares outstanding used to calculate both the basic and diluted per share was the same. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Property, plant and equipment | 12. Property, plant and equipment Right-of-use Right-of-use Leasehold Office IT Total £’000s £’000s £’000s £’000s £’000s £’000s Cost or valuation At January 1, 2021 1,848 1,169 164 71 132 3,384 Additions 923 — 393 109 48 1,473 Lease modification 133 30 — — — 163 Disposals — (868 ) — (7 ) — (875 ) Currency translation effects (1 ) (36 ) — — — (37 ) At December 31, 2021 2,903 295 557 173 180 4,108 Depreciation At January 1, 2021 (531 ) (1,023 ) (85 ) (65 ) (107 ) (1,811 ) Disposals — 868 — 7 — 874 Depreciation for the year (494 ) (76 ) (39 ) (11 ) (22 ) (642 ) At December 31, 2021 (1,025 ) (231 ) (124 ) (69 ) (129 ) (1,578 ) Net book value At January 1, 2021 1,318 146 79 6 25 1,573 At December 31, 2021 1,878 64 433 104 51 2,530 Right-of-use Right-of-use Leasehold Office IT Total £’000s £’000s £’000s £’000s £’000s £’000s Cost or valuation At January 1, 2020 11,877 1,024 164 71 116 13,252 Additions — — — — 16 16 Lease modification (10,220 ) 149 — — — (10,071 ) Currency translation effects 191 (4 ) — — — 187 At December 31, 2020 1,848 1,169 164 71 132 3,384 Depreciation At January 1, 2020 (996 ) (509 ) (69 ) (30 ) (90 ) (1,694 ) Lease modifications 1,482 — — — — 1,482 Depreciation for the year (1,017 ) (514 ) (16 ) (35 ) (17 ) (1,599 ) At December 31, 2020 (531 ) (1,023 ) (85 ) (65 ) (107 ) (1,811 ) Net book value At January 1, 2020 10,881 515 95 41 26 11,558 At December 31, 2020 1,318 146 79 6 25 1,573 In June 2021, the Company entered into a new lease agreement for additional office space in London, UK. The Company also extended the lease term of the existing office space, which resulted in the modification of the right-of-use In August 2020, the Company modified the scope of the leased office space in the US included in the right-of-use non-lease right-of-use The Company leases office space and equipment for use in research and development activities. In the year-ended December 31, 2021, the Company made lease payments of £0.7 million (2020: £2.1 million). The maturity of lease liabilities as of December 31, 2021 are as follows: Within 1 Between Between Over 5 Total £’000s £’000s £’000s £’000s £’000s Maturity of lease liabilities 622 972 782 — 2,376 Further details on the movements within lease liability are included in Note 23. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
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Intangible assets | 13. Intangible assets Acquired £’000s Cost At January 1, 2020 45,527 Disposals (13,386 ) Currency translation effects 864 At December 31, 2020 33,005 At December 31, 2021 33,005 Revisions to estimated value At January 1, 2020 (1,071 ) Revisions to estimated value (286 ) At December 31, 2020 (1,357 ) Revisions to estimated value 2,373 Out-license (9,457 ) At December 31, 2021 (8,441 ) Net book value At January 1, 2020 44,456 At December 31, 2020 31,648 At December 31, 2021 24,564 The Company’s strategy is to acquire and develop clinical-stage development programs for the treatment of oncology and rare diseases. On January 25, 2021, the Company’s license and collaboration agreement with Ultragenyx for the development and commercialization of setrusumab for OI became effective. Under the terms of the agreement, the Company received an upfront payment of £36.5 million ($50 million). Additionally, the Company will be eligible to receive up to $254 million in future milestones and royalties. The license and collaboration agreement grants Ultragenyx an exclusive license to develop and commercialize setrusumab in the US and rest of the world, excluding Europe where the Company retains commercial rights. As a result, intangible assets with a carrying value of £9.5 million were derecognized and recorded within “Cost of revenue” in the Company’s consolidated statement of comprehensive income/(loss). In October 2017, the Company acquired the exclusive license for alvelestat and included the option to acquire certain assets from AstraZeneca AB (“AstraZeneca”). On that date the fair value of alvelestat was measured at £7.2 million, which consisted of upfront cash and equity payments as well as deferred cash and equity consideration. The provision for deferred cash consideration is re-measured During the year the Company did not revise the value of any other intangible assets. As the intangible assets remain under development, no amortization charge has been recognized (2020: £nil). On April 23, 2019, the Company acquired an intangible asset of £12.7 million following the acquisition of Mereo BioPharma 5, Inc. The intangible asset represented the intellectual property associated with etigilimab and navicixizumab, among others, for which the fair value at acquisition was fully attributed to navicixizumab. On January 13, 2020, the Company entered into a license agreement with OncXerna under which an exclusive worldwide license was granted in respect of intellectual property rights for the development and commercialization of navicixizumab. Under the terms of the license agreement, the Company received an upfront gross payment of £3.1 million ($4 million), and derecognized the associated intangible asset, recording a loss on disposal of £10.9 million. |
Impairment testing of acquired
Impairment testing of acquired development programs not yet available for use | 12 Months Ended |
Dec. 31, 2021 | |
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Impairment testing of acquired development programs not yet available for use | 14. Impairment testing of acquired development programs not yet available for use Acquired development programs not yet available for use are assessed annually for impairment. The carrying amount of acquired development programs is as follows: December 31, 2021 2020 £’000s £’000s BPS-804 2,159 11,616 MPH-966 8,208 5,835 BSG-649 9,886 9,886 BCT-197 4,311 4,311 Total 24,564 31,648 The Company considers the future development costs, the probability of successfully progressing each program to product approval and the likely commercial returns after product approval, among other factors, when reviewing for indicators of impairment. The results of this testing did not indicate any impairment of the acquired products’ rights for the year ended December 31, 2021. Management believes that the likelihood of a materially different outcome using different assumptions is remote. The acquired development programs are assets which are not used in commercialized products. These assets have not yet begun to be amortized but have been tested for impairment by assessing their value in use. Value in use calculations for each program are utilized to calculate the recoverable amount. The calculations use pre-tax out-licensed out-licensing Key assumptions for the value in use calculations are described as follows: • Development costs to obtain regulatory approval – costs are estimated net of any contributions expected from collaborative arrangements with future partners. Management have developed cost estimates based on their previous experience and in conjunction with the expertise of their clinical development partners; • Launch dates of products – these reflect management’s expected date of launch for products based on the timeline of development programs required to obtain regulatory approval. The assumptions are based on management’s and clinical development partners’ prior experience; • Probability of successful development – management estimates probabilities of success for each phase of development based on industry averages and knowledge of specific programs; • Out-licensing • Sales projections – these are based on management’s internal projections using external market data and market research commissioned by the Company; • Profit margins and other operational expenses – these are based on the Company’s internal projections of current product manufacturing costings, with input from manufacturing partners where applicable, and estimates of operating costs based on management’s prior industry experience; • Cash flow projections – for all assets, cash flows are assessed over an industry-standard asset life of 20 years; and • Discount rates – the discount rate is estimated on a pre-tax Where an out-licensing At this stage of product development, the key sensitivity for all development programs is the probability of successful completion of clinical trials in order to obtain regulatory approval necessary for commercial sales. Therefore, full impairment of a development program is expected should such clinical trials be unsuccessful. |
Other receivables
Other receivables | 12 Months Ended |
Dec. 31, 2021 | |
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Other receivables | 15. Other receivables December 31, 2021 2020 £’000s £’000s Lease deposits 408 407 VAT recoverable 387 370 Other 624 239 Total 1,419 1,016 |
Cash and short-term deposits
Cash and short-term deposits | 12 Months Ended |
Dec. 31, 2021 | |
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Cash and short-term deposits | 16. Cash and short-term deposits December 31, 2021 2020 £’000s £’000s Cash 93,727 22,922 Short-term deposits 569 547 Total 94,296 23,469 Short-term deposits are available immediately and earn fixed interest at the respective short-term deposit rates and are held in various certificates of deposit. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2021 | |
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Trade and other payables | 17. Trade and other payables December 31, 2021 2020 £’000s £’000s Trade payables 2,285 3,165 Social security and other taxes 190 146 Other payables 24 22 Total 2,499 3,333 Trade and other payables are non-interest bearing and have an average term of one month. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2021 | |
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Provisions | 18. Provisions December 31, 2021 2020 £’000s £’000s Social security contribution on vested share options — 109 Provision for deferred cash consideration 4,123 1,525 Total 4,123 1,634 Current 2,803 418 Non-current 1,320 1,216 Social security Deferred cash £’000s £’000s At January 1, 2020 104 1,654 Arising/(released) during the year, net 5 — Increase in provision due to the unwinding of the time value of money — 157 Decrease in provision due to a change in estimates relating to timelines and probabilities of contractual milestones being achieved (revision to intangible asset, see Note 13) — (286 ) At December 31, 2020 109 1,525 Arising/(released) during the year, net (109 ) — Increase in provision due to the unwinding of the time value of money — 225 Increase in provision due to a change in estimates relating to timelines and probabilities of contractual milestones being achieved (revision to intangible asset, see Note 13) — 2,373 At December 31, 2021 — 4,123 The provision for social security contributions on share options is calculated based on the number of vested options outstanding at the reporting date that are expected to be exercised. The provision is based on the estimated taxable gain arising on exercise of the share options, using the best estimate of the market price at the balance sheet date. The deferred cash consideration is the estimate of the quantifiable but not certain future cash payment obligations due to AstraZeneca for the acquisition of certain assets (see Note 13). This provision is calculated as the risk-adjusted net present value of future cash payments to be made by the Company. The payments are dependent on reaching certain milestones based on the commencement and outcome of clinical trials. The likelihood of achieving such milestones is reviewed at the balance sheet date and increased or decreased as appropriate. |
Private Placement
Private Placement | 12 Months Ended |
Dec. 31, 2021 | |
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Private Placement | 19. Private placement On June 3, 2020, the Company completed a £56 million private placement transaction which comprised of the issuance of 89,144,630 ordinary shares of £0.003 each at a price of £0.174 per share for total proceeds of £15.5 million, and the issue of Tranche 1 convertible loan notes (the “Loan Notes”) for total proceeds of £40.5 million. The investors also received conditional warrants to subscribe for an additional 161,048,366 ordinary shares (the “Warrants”). The terms of the Loan Notes and Warrants, and, in particular, their ability to be converted into ordinary shares was conditional on the passing of certain resolutions (the “Resolutions”) at a subsequent general meeting of shareholders held on June 30, 2020. At that date, the Resolutions were passed, and the Loan Notes became convertible into ordinary shares. Loan Notes The Loan Notes bear interest at a rate of 6% per annum and have an initial maturity date of June 2023. The Loan Notes are convertible into ordinary shares at the discretion of the holder and, if not converted by the initial maturity date, may be extended for an additional seven years, but will cease to bear interest from any extension date. The Loan Notes were initially recognized at their fair value of £38.6 million (debt host instrument in the amount of £26.7 million and the embedded derivative in the amount of £11.9 million, before transaction costs). Loan Notes in an aggregate principal amount of £40.5 million were issued on June 3, 2020 and became convertible upon the passing of the Resolutions. As a result, on June 30, 2020, Loan Notes in an aggregate principal amount of £21.8 million, together with accrued interest, were automatically converted into 125,061,475 ordinary shares, and Loan Notes in an aggregate principal amount of £18.9 million remained outstanding as of December 31, 2020. See Note 21. During the year ended December 31, 2021, the Company issued and allotted 40,397,976 ordinary shares at a price of £0.174 per share on conversion of Loan Notes. As of December 31, 2021, Loan Notes in an aggregate principal amount of £12.4 million remain outstanding. Warrants Participants in the private placement transaction received conditional warrants to subscribe for further ordinary shares in an aggregate number equal to 50 percent of both the ordinary shares purchased and the ordinary shares issuable upon conversion of the Loan Notes. A total of 161,048,366 Warrants were issued. The fair value of the warrants at inception was £4.1 million. The Warrants have an exercise price of £0.348 per share and are exercisable at any time until their expiry in June 2023. The Warrants can be exercised for cash or on a cashless basis at the discretion of the warrant holder. Certain Warrants outstanding at the expiry date may be converted into Tranche 2 Notes, with an expiry date of up to seven years from conversion, and do not bear interest. See Note 20. The Loan Notes and the Warrants were recognized as separate financial instruments. Transaction costs directly attributable to the private placement transaction were apportioned across the ordinary shares, Loan Notes and Warrants. |
Warrant liability
Warrant liability | 12 Months Ended |
Dec. 31, 2021 | |
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Warrant liability | 20. Warrant liability December 31, 2021 2020 £’000s £’000s January 1 50,775 131 Issued during the year — 4,080 Settled during the year (2,400 ) (127 ) Fair value changes during the year (40,039 ) 46,691 At December 31 8,336 50,775 The change in fair value of the warrant liability represents an unrealized gain in the year ended December 31, 2021. Warrants – private placement As a part of the private placement transaction on June 3, 2020, the participating investors received conditional warrants entitling them to subscribe for an aggregate of 161,048,366 ordinary shares in the Company. The warrants were conditional on certain Resolutions being passed at the Company’s general meeting on June 30, 2020. On the passing of the Resolutions, the warrants entitled the investors to subscribe for ordinary shares at an exercise price of £0.348 per warrant and are exercisable until June 2023. The warrants are classified as liabilities as the Company does not have an unconditional right to avoid redeeming the instruments for cash. The fair value of the warrant liability was £8.0 million as of December 31, 2021 (£49.9 million as of December 31, 2020). The change in the fair value of £39.5 million was recognized as a gain in the consolidated statement of comprehensive income/(loss). During the year-ended December 31, 2021, 15,414,626 warrants were exercised (2020: 690,205). Refer to Note 22 for details of the warrant exercises. Warrants – bank loan As of December 31, 2021 and 2020, the former lenders of the Company have warrants outstanding to purchase a total of 1,243,908 ordinary shares at an exercise price of £2.95 per share and a total of 1,243,908 ordinary shares at an exercise price of $0.4144 per share. At December 31, 2021, the fair value of these warrants were £0.3 million (2020: £0.8 million). There were no warrants exercised during the year ended December 31, 2021. Total outstanding warrants At December 31, 2021, a total of 147,431,351 warrants are outstanding (2020: 162,845,977). The warrants outstanding are equivalent to 25% of the issued ordinary share capital of the Company (2020: 48%). The following table lists the weighted average inputs to the models used for the fair value of warrants: December 31, 2021 2020 Expected volatility (%) 75 84-85 Risk-free interest rate (%) 0.9 0.25-(0.05) Expected life of warrants (years) 1.5 3 Market price of ADS ($) $ 1.60 $ 3.58 Model used Black-Scholes Black-Scholes |
Convertible loan notes
Convertible loan notes | 12 Months Ended |
Dec. 31, 2021 | |
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Convertible loan notes | 21. Convertible loan notes December 31, 2021 2020 £’000s £’000s Novartis Loan Note 3,771 3,196 Loan Notes – private placement 10,613 12,946 Total 14,384 16,142 Current — — Non-current 14,384 16,142 Convertible loan notes On February 10, 2020, the Company entered into a convertible equity financing with Novartis Pharma (AG) (“Novartis”) under which Novartis purchased a £3.8 million convertible loan note (the “Novartis Loan Note”). The Novartis Loan Note is convertible at the discretion of the holder, at a fixed price of £0.265 per ordinary share and bears an interest rate of 6% per annum with a maturity date of February 2025. In connection with the Novartis Loan Note, the Company issued 1,449,614 warrants which are exercisable until February 2025 Loan Notes – private placement The initial issuance of Loan Notes in an aggregate principal amount of £40.5 million were issued on June 3, 2020 and formed part of the private placement transaction (Note 19) were classified as a financial liability on initial recognition. Non-closely The fair value of the embedded derivative liability was £11.9 million on initial recognition and the fair value of the liability component was £24.4 million (net of transaction costs). In 2020, between initial recognition and the passing of the Resolutions (Note 19), changes in the fair value of the embedded derivative totaling £63.2 million were recognized as an expense in the consolidated statement of comprehensive income/(loss). The Loan Notes were not convertible until certain Resolutions were passed at the Company’s general meeting on June 30, 2020, following which Loan Notes in an aggregate principal amount of £21.7 million (together with accrued interest) were automatically converted into 125,061,475 ordinary shares. Accordingly, a reduction in interest bearing loans of £13.3 million together with the derecognition of the embedded derivative relating to the conversion feature of £41.6 million was recognized; no gain or loss was recognized on conversion. The remaining portion of the embedded derivative relating to the conversion feature attributable to the Loan Notes outstanding of £33.5 million was reclassified to equity to reflect the effective change in the terms of the feature following the passing of the Resolutions. The movements in the carrying value of the liability component of the Loan Notes is included in the table below. Refer to Note 22 for details of Loan Notes converted to equity. Year ended December 31, 2021 2020 £’000s £’000s January 1 12,946 — Issued — 24,417 Interest charge 2,974 1,803 Converted to equity (5,307 ) (13,274 ) December 31 10,613 12,946 The movements in the carrying value of the embedded derivative relating to the conversion feature in the year-ended 2020 is included in the table below. There were no movements in the carrying value of the embedded derivative in the year-ended December 31, 2021 following the reclassification to equity on June 30, 2020. Year ended December 31, 2020 £’000s January 1 — Arising during the year 11,913 Change in fair value 63,158 Reclassified to equity (75,071 ) December 31 — The change in fair value of the embedded derivative liability represented an unrealized loss (recognized within fair value changes on derivative financial instruments held at FVTPL) in the consolidated statement of comprehensive income/(loss) in the year ended December 31, 2020. The fair value of the embedded derivative was determined by comparing the fair value of the hybrid instrument and the fair value of the host debt, which excludes the conversion features, using a discounted cash flow model as well as Black-Scholes model for the hybrid contract. Inputs into the models used to fair value the embedded derivative at inception (June 3, 2020), at conversion (June 30, 2020) and at the balance sheet date are as follows: December 31, 2020 June 30, 2020 June 3, 2020 Expected volatility — 61 61 Risk-free interest rate (%) — 0.19 0.27 Credit spread % — 1.86 2.01 Expected life — 3 3 Market price of ordinary shares (£) — 0.46 0.19 Probability of resolutions passing (%) — 100 90 Models used — Discounted cash flow/Black-Scholes Discounted cash flow/Black-Scholes Volatility was estimated by reference to the one-month |
Issued capital and reserves
Issued capital and reserves | 12 Months Ended |
Dec. 31, 2021 | |
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Issued capital and reserves | 22. Issued capital and reserves Ordinary Ordinary Share Number £’000s £’000s As at January 1, 2019 71,240,272 214 118,492 Issued on April 23, 2019 24,783,320 74 — Issued on June 21, 2019 1,936,030 6 3,953 Transaction costs for issued share capital — — (761 ) As at December 31, 2019 97,959,622 294 121,684 Issued on February 11, 2020 14,295,520 43 2,511 Issued on February 20, 2020 12,252,715 37 2,267 Issued on June 4, 2020 89,144,630 267 15,244 Issued on June 30, 2020 125,061,475 375 21,386 Issued on December 23, 2020 239,179 1 — Transaction costs for issued share capital — — (1,307 ) As at December 31, 2020 338,953,141 1,017 161,785 Issued during the year 245,955,098 738 85,909 Transaction costs for issued share capital — — (234 ) As at December 31, 2021 584,908,239 1,755 247,460 Since January 1, 2019, the following alterations to the Company’s share capital have been made. For each share issuance, ordinary shares of £0.003 in nominal value in the capital of the Company were issued. • On April 23, 2019, the Company issued and allotted 24,783,320 ordinary shares as consideration for the acquisition of Mereo BioPharma 5, Inc. The fair value of the ordinary shares, measured on the date of acquisition, was £1.65; • On June 21, 2019, Novartis converted £2.4 million of loan notes dated June 3, 2016 into 1,071,042 ordinary shares at a fixed conversion price of £2.21 per share. Under the terms of the notes, Novartis also received 864,988 bonus shares. • On February 11, 2020, the Company issued and allotted 11,432,925 ordinary shares at a price of £0.20 per share to Aspire Capital Fund, LLC (“Aspire Capital”). Gross cash received was £2.3 million. Aspire Capital has also committed to subscribe for up to an additional $25 million of ordinary shares exchangeable for ADSs from time to time during a 30-month non-cash • On February 20, 2020, the Company issued and allotted 12,252,715 ordinary shares at a price of £0.19 per share. Gross cash received was £2.3 million; • On June 4, 2020, the Company issued and allotted 89,144,630 ordinary shares at a price of £0.174 per share to investors. Gross cash received was £15.5 million. The ordinary shares were in substance issued at a discount to the gross cash received. The fair value of the consideration of the ordinary shares was determined to be £13.4 million and therefore the ordinary shares were in substance issued at a discount of £2.1 million, which was recorded as a reduction to other reserves (other reserves represent amounts that relate to changes to the Company’s paid up equity and which are not capital reserves) in the consolidated statement of changes in equity. The incremental directly attributable transaction costs in relation to the issue of the ordinary shares were included within share premium; • On June 30, 2020, the Company issued and allotted 125,061,475 ordinary shares at a price of £0.174 per share to investors on conversion of the Loan Notes. The legal proceeds were £21.8 million; • On December 23, 2020, 690,205 Warrants (equivalent to 138,041 ADSs) were exercised. This transaction was completed by way of a cashless exercise resulting in 47,835 ADSs being issued at the aggregate nominal value of the ordinary shares underlying the ADSs issued, in place of the exercise price of £0.348 per ordinary share. • On February 12, 2021, the Company issued and allotted 198,375,000 ordinary shares of the Company with a nominal value of £0.003 at a price of £0.395 per share, equivalent to 39,675,000 ADS at a price of $2.726 per ADS, after underwriting discounts and commissions • During the year ended December 31, 2021, 14,954,491 warrants (equivalent to 2,990,898 ADSs) were exercised by way of a cashless exercise resulting in 4,621,147 ordinary shares (924,229 ADSs) being issued at the aggregate nominal value of the ordinary shares underlying the ADSs issued, in place of the exercise price of £0.348 per ordinary share. A further 460,135 warrants (equivalent to 92,027 ADSs) were exercised on a cash basis at the exercise price of £0.348, which resulted in aggregate proceeds of £0.2 million. • On May 4, 2021, the Company issued and allotted 2,100,840 ordinary shares of £0.003 in nominal value in the capital of the Company at a price of £0.517 per share to Cancer Focus Fund, as part of a non-cash, • During the year ended December 31, 2021, the Company issued and allotted 40,397,976 ordinary shares of £0.003 in nominal value in the capital of the Company at an exercise price of £0.174 per share on non-cash Other capital reserves Shares Share- Equity Other Merger Other Total £’000s £’000s £’000s £’000s £’000s £’000s £’000s At January 1, 2019 1,590 16,649 310 44 — — 18,593 Acquisition of Mereo BioPharma 5, Inc. — — — — 40,818 — 40,818 Shares issued during the year (1,590 ) — — — — — (1,590 ) Convertible loan conversion — — (310 ) — — — (310 ) Share based payments expense during the year — 1,636 — — — — 1,636 At December 31, 2019 — 18,285 — 44 40,818 — 59,147 Share based payments expense during the year — 1,558 — — — — 1,558 Novartis convertible loan note instrument and warrants — — 1,084 — — — 1,084 Conversion of Loan Notes — — — — — 33,104 33,104 Reclassification of the embedded derivative — — 33,481 — — — 33,481 At December 31, 2020 — 19,843 34,565 44 40,818 33,104 128,374 Share based payments expense during the year — 3,302 — — — — 3,302 Share options exercised — (119 ) — — — — (119 ) Conversion of Loan Notes — — (1,722 ) — — — (1,722 ) At December 31, 2021 — 23,026 32,843 44 40,818 33,104 129,835 Shares to be issued At January 1, 2019, a maximum of 864,988 shares were remaining to be issued to Novartis pro-rata On June 21, 2019, the remaining 864,988 shares were issued to Novartis as fully paid up bonus shares for £nil consideration. There were no movements in this reserve in 2020 and 2021 and the balance as at December 31, 2019, 2020 and 2021 was £nil. Share-based payments The Company has various share option schemes under which options to subscribe for the Company’s shares have been granted to certain executives, non-executive The share-based payment reserve is used to recognize (i) the value of equity settled share-based payments provided to employees, including key management personnel, as part of their remuneration and (ii) deferred equity consideration. Refer to Note 26 for further details. Equity component of convertible loan instrument The convertible loan notes issued to Novartis are a compound instrument consisting of a liability and an equity component. The value of the equity component (cost of the conversion option) as at December 31, 2021 is £1.08 million (December 31, 2020: £1.08 million). On June 30, 2020, the Loan Notes in an aggregate principal amount of £21.8 million (together with accrued interest) were automatically converted into 125,061,475 ordinary shares. This resulted in £33.5 million recognized in other reserves in equity as a difference between the share capital and share premium recognized on conversion and the carrying value of the embedded derivative financial liability extinguished. See Note 19. Other warrants issued The funding arrangements with The Alpha-1 Merger reserve The consideration paid to acquire Mereo BioPharma 5, Inc. was 24,783,320 ordinary shares with an acquisition date fair value of £40.9 million, based on the Company’s quoted share price. The nominal value of the issued capital was £0.1 million with the excess, £40.8 million, classified within other capital reserves as a ‘Merger reserve’. Other reserves On June 30, 2020, the Company issued and allotted 125,061,475 ordinary shares of £0.003 in nominal value in the capital of the Company at a price of £0.174 per share to investors following the partial conversion of the Loan Notes. The legal proceeds were £21.8 million. This resulted in £33.1 million recognized in other reserves as a difference between the carrying value of the financial liability extinguished and the legal proceeds. Accumulated loss Year ended December 31, 2021 2020 2019 Other reserves 7,401 5,001 7,000 Accumulated losses (296,968 ) (309,693 ) (146,065 ) Other reserves represent a capital reduction undertaken in 2016 which created a reserve of £7.0 million. On June 3, 2020, the Company issued and allotted 89,144,630 ordinary shares to investors. The difference between the gross proceeds, £15.5 million, and the fair value of the consideration of the ordinary shares, £13.4 million, of £2.1 million, was recognized as a reduction to other reserves. During the year ended December 31, 2021, 15,414,626 private placement warrants were exercised, resulting in a £2.4 million reduction in the warrant liability which was recognized as an addition to “Other reserves.” |
Changes in liabilities arising
Changes in liabilities arising from financing activities | 12 Months Ended |
Dec. 31, 2021 | |
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Changes in liabilities arising from financing activities | 23. Changes in liabilities arising from financing activities Contingent Lease Bank Novartis Warrant Deferred Loan Other Total £’000s £’000s £’000s £’000s £’000s £’000s £’000s £’000s £’000s Carrying value at January 1, 2020 354 11,904 20,512 — 131 1,654 — 44 34,599 Settled during the year (354 ) — (23,412 ) — (127 ) — — — (23,893 ) Financing cash flows — (2,086 ) — 2,758 — — 36,330 18 37,020 Issuance of warrants — — — — 4,080 — — — 4,080 Interest expense — 1,085 2,900 438 — — 1,803 — 6,226 Lease modification — (9,547 ) — — — — — — (9,547 ) Changes in fair values — — — — 46,691 (129 ) 63,158 — 109,720 Changes in foreign exchange — 438 — — — — — — 438 Reclassified to equity — — — — — — (88,345 ) — (88,345 ) Carrying value at December 31, 2020 — 1,794 — 3,196 50,775 1,525 12,946 62 70,298 Financing cash flows — (692 ) — — — — — — (692 ) Non-cash Settled during the year — — — — (2,400 ) — (5,307 ) — (7,707 ) Interest expense — 230 — 575 — 206 2,974 18 4,003 Lease addition — 910 — — — — — — 910 Lease modification — 163 — — — — — — 163 Changes in fair values — — — — (40,039 ) 2,373 — — (37,666 ) Changes in foreign exchange — (29 ) — — — 19 — — (10 ) Carrying value at December 31, 2021 — 2,376 — 3,771 8,336 4,123 10,613 80 29,299 |
Financial and capital risk mana
Financial and capital risk management and fair value measurement | 12 Months Ended |
Dec. 31, 2021 | |
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Financial and capital risk management and fair value measurement | 24. Financial and capital risk management and fair value measurement Capital risk management The Company’s objectives when managing capital are to safeguard the ability to continue as a going concern and ensure that sufficient capital is in place to fund the Company’s R&D activities and operations. The Company’s principal methods of adjusting the capital available are through issuing new shares, licensing and/or collaboration agreements or arranging suitable debt financing. The Company’s share capital and share premium are disclosed in Note 22. The Company’s convertible loans are disclosed in Note 21. The Company monitors the availability of capital with regards to its committed and forecasted future expenditure on an ongoing basis. The Company has an Employee Benefit Trust which holds ADSs to satisfy exercises of options under the Company’s share option schemes (see Note 26). Financial risk management objectives and policies The Company seeks to maintain a balance between equity capital and convertible debt to provide sufficient cash resources to execute the business plan. In addition, the Company maintains a balance between cash held on deposit and short-term investments in pound sterling and other currencies to reduce its exposure to foreign exchange fluctuations in respect of its planned expenditure. Company’s principal financial instruments comprise warrants, convertible loan notes and trade payables which arise directly from its operations. The Company has various financial assets, including receivables and cash and short-term deposits. Interest rate risk The Company’s policy in relation to interest rate risk is to monitor short and medium-term interest rates and to place cash on deposit for periods that optimize the amount of interest earned while maintaining access to sufficient funds to meet the cost of is operating activities and future research and development activities. The Company’s interest payable on convertible loan notes is fixed. Consequently, there is no material exposure to interest rate risk in respect of interest payable. Credit risk The Company is dependent on a number of third parties for the delivery of its programs and, where required, pays upfront deposits and fees in advance of the delivery of services. The Company considers all of its material counterparties to be creditworthy and the credit risk for each of its major counterparties to be low, but continues to assess credit risk as part of its management of these third-party Liquidity risk The Company’s policy is to maintain adequate cash reserves at highly rated banks and financial institutions and also seeks to invest in short-term deposits to achieve a competitive rate of return. The Company’s liquid resources are invested with regard to the timing of payments to be made in the ordinary course of business, while monitoring its funding requirements through preparation of short-term, mid-term The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments at December 31, 2021: Up to 1 year 1-3 years 3-5 years Over 5 years Total £’000s £’000s £’000s £’000s £’000s Leases 781 1,222 835 — 2,838 Trade and other payables 2,499 — — — 2,499 Accruals 3,826 — — — 3,826 The Company does not face a significant liquidity risk with regards to its lease liabilities. The Company may incur potential payments upon achievement of clinical, regulatory and commercial milestones, as applicable, or royalty payments that may be required to be made under license agreements the Company entered into with various entities pursuant to which the Company has in-licensed Foreign currency and market risk Foreign currency risk arises from R&D activities, commercial transactions and recognized assets and liabilities in foreign currencies, with the principal currency exposure being fluctuations in pound sterling, U.S. dollars and Euros. The functional currency of the Company and all subsidiaries is pound sterling, except for Mereo BioPharma 5, Inc. whose functional currency is U.S. dollars. The Company incurs expenditures in foreign currencies and is exposed to the risks of foreign exchange rate movements, with the impact recognized in the consolidated statement of comprehensive income/(loss). Funding secured in 2021 and 2020 was principally in U.S dollars and, although the Company currently has no revenue from product sales, proceeds received from upfront milestones under its licensing and collaboration agreements are denominated in U.S. dollars, while the majority of operating costs are denominated in pound sterling, U.S. dollars and Euros. The Company seeks to minimize this exposure by passively maintaining foreign currency cash balances at levels appropriate to meet foreseeable foreign currency expenditures. The Company does not hedge potential future cash flows or income. The table below shows analysis of the pound sterling equivalent of period-end December 31, 2021 2020 £’000s £’000s Pound sterling 92,104 17,809 U.S. dollars 2,018 5,586 Swiss francs 9 9 Euro 165 65 Total 94,296 23,469 The table below shows those transactional exposures that give rise to net currency gains and losses recognized in the consolidated statement of comprehensive income/(loss). Such exposures comprise the net monetary assets and monetary liabilities of the Company that are not denominated in the functional currency of the relevant subsidiary. As at December 31, these exposures were as follows: December 31, 2021 2020 Net foreign currency assets/(liabilities): £ ’000s £ ’000s U.S. dollars 920 4,088 Swiss francs 9 9 Euro (142 ) (513 ) Total 787 3,584 The most significant currencies in which the Company transacts, other than pound sterling, are the U.S. dollar and the Euro. The Company also transacts in other currencies as necessary. The following table illustrates the sensitivity to a 10% weakening or strengthening in the period-end December 31, 2021 U.S. dollar Euro £’000s £’000s Profit before tax (84 ) 13 Equity (84 ) 13 December 31, 2020 U.S. dollar Euro £’000s £’000s Profit before tax (372 ) 47 Equity (372 ) 47 Financial instruments by category Fair value Amortized cost 2021 2020 2021 2020 Financial assets £ ’000s £ ’000s £ ’000s £ ’000s Cash and short-term deposits — — 94,296 23,469 Other receivables — — 1,032 646 Total financial assets — — 95,328 24,919 Financial liabilities Provisions 4,123 1,634 — — Convertible loan notes — — 14,384 16,142 Warrant liability 8,336 50,775 — — Trade and other payables — — 2,309 3,187 Accruals — — 3,826 4,178 Lease liability — — 2,376 1,794 Total financial liabilities 12,459 52,409 22,895 25,301 The carrying values of financial assets and financial liabilities recorded at amortized cost in the consolidated financial statements are approximately equal to their fair values. Fair value hierarchy Fair value measurement using Liabilities measured at fair Date of valuation Total Quoted prices Significant Significant (Level 3) £’000s £’000s £’000s £’000s Provision for deferred consideration (Note 18) December 31, 2021 4,123 — — 4,123 Warrant liability (Note 20) December 31, 2021 8,336 — 341 7,995 Fair value measurement using Liabilities measured at fair Date of valuation Total Quoted prices Significant Significant (Level 3) £’000s £’000s £’000s £’000s Provision for deferred consideration (Note 18) December 31, 2020 1,525 — — 1,525 Warrant liability (Note 20) December 31, 2020 50,775 — 845 49,930 There were no transfers between Level 1 and Level 2 during the years ended December 31, 2021 and 2020. The following table presents the changes in Level 3 items for the periods ended December 31, 2021 and December 31, 2020: Provision for Provision for Warrant £’000s £’000s £’000s January 1, 2020 1,654 354 — Issued during the year — — 4,080 Settled during the year — (354 ) (127 ) Unwinding of the time value of money (recognized as a finance cost) 157 — — Change in estimate relating to probabilities (revision to intangible asset, see Note 13) (286 ) — — Change in fair value — — 45,977 December 31, 2020 1,525 — 49,930 Settled during the year — — (2,400 ) Unwinding of the time value of money (recognized as a finance cost) 225 — — Change in estimate relating to probabilities (revision to intangible asset, see Note 13) 2,373 — — Change in fair value — — (39,535 ) December 31, 2021 4,123 — 7,995 The following methods and assumptions were used to estimate the fair values: • The fair value of the provision for deferred cash consideration is estimated by discounting future cash flows using rates currently available for debt on similar terms and credit risk. In addition to being sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the fair value of the deferred cash consideration is also sensitive to a reasonably possible change in the probability of reaching certain milestones. The valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value. • At December 31, 2021, the Company estimates the fair value of the contingent consideration liability to be £nil. An amount of £0.4 million was paid in 2020 relating to the Navi milestone received. The estimated contingent consideration payable is based on a risk adjusted, probability-based scenario. Under this approach the likelihood of future payments being made to the former shareholders of Mereo BioPharma 5, Inc. under the CVR arrangement is considered. The estimate could materially change over time as the development plan and subsequent commercialization of the Navi product progresses. • The warrant liability is estimated using a Black-Scholes model, taking into account appropriate amendments to inputs in respect of volatility, remaining expected life of the warrants and rates of interest at each reporting date. The significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy, together with a quantitative sensitivity analysis as at December 31, 2021 and 2020 are as follows: Valuation technique Significant unobservable inputs Input range (weighted average) Sensitivity of the input to fair value Provision for deferred cash consideration Discounted cash flow WACC 2021: 12% 1% increase/decrease would result in a decrease/increase in fair value by £31,000 WACC 2020: 12% 1% increase/decrease would result in a decrease/increase in fair value by £25,000 Probability of success 2021:40.6% - 81.2% 10% increase/decrease would result in an increase/decrease in fair value by £0.5 million Probability of success 2020: 13.8%–95% 10% increase/decrease would result in an increase/decrease in fair value by £0.4 million Contingent consideration liability Discounted cash flow Ongoing uncertainty in the clinical development of the Navi product Total potential payments future payments relating to the contingent consideration liability on a gross, undiscounted basis are approximately $80 million. Regulatory approval and commercialization risks Sensitivity of the input to fair value is primarily driven by uncertainty in the clinical development of the Navi product. Future potential payments under the CVR arrangement are contingent on i) future development milestones and ii) future sales of the Navi product, following regulatory approval and commercialization. In January 2020, the Company entered into the license agreement as detailed in Note 13. Although pursuant to the license agreement the Company is entitled to additional payments of up to $302 million, there continues to be significant uncertainty in respect of any milestone and royalty payments under the license agreement. Warrant liability related to the private placement Black- Scholes model Expected volatility 2021:75.1% Volatility was estimated by reference to the 1.4 years historical volatility of the historical share price of the Company, matching the maturity of the instrument. If the volatility is decreased to 67.4% based on 1-year Expected volatility 2020: 85.1% Volatility was estimated by reference to the six-month historical If the volatility is increased to 93.8% based on three-month historical volatility, the carrying value of the warrants as of December 31, 2020 would have increased to £52.9 million. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Commitments and contingencies | 25. Commitments and contingencies Each of Mereo BioPharma 1 Limited, Mereo BioPharma 2 Limited and Mereo BioPharma 3 Limited (together, the “Subsidiaries”) issued to Novartis loan notes (which were assigned by Novartis to the Company in exchange for ordinary shares pursuant to the Subscription Agreement) and each of the Subsidiaries agreed to make future payments to Novartis comprising amounts equal to ascending specified percentages of tiered annual worldwide net sales (beginning at high single digits and reaching into double digits at higher sales) by such Subsidiary of products that include the assets acquired. The levels of ascending percentages of tiered annual worldwide net sales are the same for each Subsidiary under the respective Purchase Agreements. Each Subsidiary further agreed that in the event it transfers, licenses, assigns or leases all or substantially all of its assets, it will pay Novartis a percentage of the proceeds of such transaction. The Company will retain the majority of the proceeds from such a transaction. Such percentage is the same for each Subsidiary under the respective Purchase Agreements. The payment of a percentage of proceeds is not payable with respect to any transaction involving equity interests of Mereo BioPharma Group plc, a merger or consolidation of Mereo BioPharma Group plc, or a sale of any assets of Mereo BioPharma Group plc. In October 2017, the Company’s wholly owned subsidiary Mereo BioPharma 4 Limited entered into an exclusive license and option agreement (“the License Agreement”), to obtain from AstraZeneca an exclusive worldwide, sub-licensable sub-licensing licensed-product-by-licensed-product country-by-country The License Agreement will expire on the expiry of the last-to-expire |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Share-based payments | 26. Share-based payments The charge for share-based payments arises across the following schemes: Year ended 2021 2020 2019 £’000s £’000s £’000s 2019 Equity Incentive Plan 2,860 922 635 2019 NED Equity Incentive Plan 499 167 160 2015 Plan — 3 63 Mereo BioPharma Group plc Share Option Plan 68 376 685 Long Term Incentive Plan (125 ) 90 93 Total 3,302 1,558 1,636 2019 Equity Incentive Plan (“EIP”) and 2019 Non-Executive The 2019 EIP and 2019 NED EIP were adopted on April 4, 2019, and subsequently amended on February 3, 2020 and January 15, 2021. The 2019 EIP provides for the grant of market value options over ADSs (each ADS is represented by 5 ordinary shares) to executive directors and employees. The 2019 NED EIP provides for the grant of market value options over ADSs to non-executive During the years ended December 31, 2021, 2020 and 2019, market value options were granted to executive directors and employees under the 2019 EIP. Subject to the executive director or employees continued employment, one-fourth During the years ended December 31, 2021, 2020 and 2019, market value options were granted to non-executive one-year The fair value of share options granted were estimated at the date of grant using a Black-Scholes pricing model, taking into account the terms and conditions upon which the share options were granted. The fair value calculation does not include any allowance for dividends as the Company has no available profits for distribution. The exercise price of the share options will be equal to the market price of the underlying shares on the date of grant. The contractual term of the share options is 10 years. The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, options for the 2019 EIP and 2019 NED EIP during the year-ended December 31, 2021: 2019 EIP 2019 NED EIP Options Number WAEP $ Options Number WAEP $ Outstanding at January 1, 2021 1,567,873 2.94 149,416 3.06 Granted during the year 2,696,960 2.83 296,000 2.81 Cancelled during the year (253,277 ) 2.66 (23,625 ) 2.72 Forfeited during the year (28,521 ) 5.37 — — Exercised during the year (39,333 ) 2.11 — — Outstanding at December 31, 2021 3,943,702 2.88 421,791 2.90 Exercisable at December 31, 2021 727,698 3.16 386,623 2.91 The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, options for the 2019 EIP and 2019 NED EIP during the year-ended December 31, 2020: 2019 EIP 2019 NED EIP Options ADS Number WAEP $ Options Number WAEP $ Outstanding at January 1, 2020 798,050 4.29 77,000 4.20 Granted during the year 1,167,836 2.00 77,000 1.84 Cancelled during the year (406 ) 5.40 — — Forfeited during the year (397,607 ) 2.87 (4,584 ) 1.84 Exercised during the year — — — — Outstanding at December 31, 2020 1,567,873 2.94 149,416 3.06 Exercisable at December 31, 2020 259,829 4.42 138,412 3.15 The weighted average remaining contractual life for the share options outstanding as at December 31, 2021 for the 2019 EIP was 8.7 years (2020: 8.9 years) and for the 2019 NED EIP was 8.6 years (2020: 8.9 years). The weighted average fair value of options granted during the year was $2.50 per ADS (2020: $2.23 per ADS). Options outstanding at the end of the year had an exercise price of between $1.76 and $5.40. The 2015 Plan Under the Mereo BioPharma Group Limited Share Option Plan (the “2015 Plan”), the Company, at its discretion, granted share options to employees, including executive management and NEDs. Share options vest over four years for executive management and employees and over three years for NEDs. No share options were granted during the year under the 2015 Plan and no further share option grants are envisaged. 2021 2020 Number WAEP £ Number WAEP £ Outstanding at January 1, 2021 8,923,600 1.32 8,923,600 1.32 Forfeited during the year (625,906 ) 1.29 — — Outstanding at December 31, 2021 8,297,694 1.31 8,923,600 1.32 Exercisable at December 31, 2021 8,297,694 1.31 8,923,600 1.32 The weighted average remaining contractual life for the share options outstanding as at December 31, 2021 was 3.6 years (2020: 4.6 years). Options outstanding at the end of the year had an exercise price of between £1.28 and £2.19. The Mereo BioPharma Group plc Share Option Plan The Mereo BioPharma Group plc Share Option Plan (“Share Option Plan”) provides for the grant of options to acquire ordinary shares to employees, executive directors and executive officers. Options may be granted to all eligible employees on commencement of employment and may be granted on a periodic basis after that. Under the Share Option Plan, the Board of Directors may determine if the vesting of an option will be subject to the satisfaction of a performance condition. Following the introduction of the EIP and NED EIP, no further share option grants under the Share Option Plan are envisaged. The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, options for the Option Plan during the year: 2021 2020 Number WAEP £ Number WAEP £ Outstanding at January 1, 2021 1,411,395 3.14 1,524,065 3.07 Forfeited during the year (87,430 ) 3.11 (112,670 ) 3.03 Outstanding at December 31, 2021 1,323,965 3.04 1,411,395 3.14 Exercisable at December 31, 2021 1,323,965 3.04 1,210,410 3.01 The weighted average remaining contractual life for the share options outstanding as at December 31, 2021 was 5.6 years (2020: 6.6 years). Options outstanding at the end of the year had an exercise price of between £2.73 and £3.22. Long Term Incentive Plan Under the Company’s Long Term Incentive Plan (LTIP), initiated in 2016, the Company, at its discretion, may grant nil-cost The fair value of the LTIP Share Price Element is estimated at the date of grant using a Monte Carlo pricing model, taking into account the terms and conditions upon which the share options were granted. The fair value of the LTIP Strategic Element is estimated at the date of grant using a Black- Scholes pricing model, taking into account the terms and conditions upon which the share options were granted, and the expense recorded is based upon the expected level of achievement of non-market The fair value calculations do not include any allowance for dividends as the Company has no available profits for distribution. The contractual term of the LTIP options is five years. 2021 2020 Outstanding at January 1 482,748 910,072 Lapsed during the year (482,748 ) (427,324 ) Outstanding at December 31 — 482,748 Exercisable at December 31 — — All LTIP options lapsed during the year ended December 31, 2021. The weighted average remaining contractual life for the LTIP options outstanding as at December 31, 2020 was 0.5 years. No LTIP options were granted during the years ended December 31, 2020 and 2021 and no further grants are envisaged. Deferred Bonus Share Plan Under the previous terms of the Company’s Deferred Bonus Share Plan (DBSP), 30% of the annual bonus for 2017 for the senior management team was payable in deferred shares, which are governed by the DBSP plan rules. At the date of grant of the awards, the monetary bonus amount was divided by the closing share price to give the number of shares issued to the employee under the DBSP. The number of shares is fixed and not subject to adjustment between the issue date and vesting date. Under the DBSP, awards vest after three years from the date of the award. There are no further performance conditions attached to the award, nor any service conditions (including no requirement for continued employment once the awards have been made). Since the awards are issued at nil cost, they will be satisfied by the issue of ADSs from the Employee Benefit Trust. 62,183 options lapsed during the year ended December 31, 2021. The outstanding number of options as at December 31, 2021 is 100,817 all of which were exercisable. The outstanding number of options as at December 31, 2020 was 163,000, of which 62,170 were exercisable. The weighted average remaining contractual life for the DBSP options outstanding as at December 31, 2021 was 0.1 years (2020: 0.6 years). For the 2018 and 2019 financial years, under the Deferred Bonus Plan (“2019 DBP”), 100% of the annual bonus was paid in cash, of which 30% of amounts granted to the senior management team (after deduction of income tax and the relevant employee’s national insurance contributions) was required to be utilized to acquire shares in the Company in the open market within 12 months of the grant of the award. No further grants under the DBSP are envisaged. Deferred equity consideration In October 2017, the Company’s wholly owned subsidiary Mereo BioPharma 4 Limited entered into an exclusive license and option agreement (the “License Agreement”) to obtain from AstraZeneca an exclusive worldwide, sub-licensable MPH-966, Under the agreement with AstraZeneca, the Company may issue up to 1,349,693 ordinary shares which are dependent on achieving certain milestones. Weighted average inputs The following table includes the weighted average inputs to the models used for the fair value of share options granted during the year ended December 31, 2021: 2019 EIP 2019 NED EIP Expected volatility (%) 97 98 Risk-free interest rate (%) 1.15 1.09 Expected life of share options (years) 10 10 Market price of ADS’s ($) 2.83 2.81 Model used Black-Scholes Black-Scholes During the year ended December 31, 2021, no grants were issued under any other scheme. The following table includes the weighted average inputs to the models used for the fair value of share options granted during the year ended December 31, 2020: 2019 EIP 2019 NED EIP Expected volatility (%) 67 68 Risk-free interest rate (%) 0.59 0.64 Expected life of share options (years) 10 10 Market price of ADS’s ($) 1.99 1.84 Model used Black-Scholes Black-Scholes During the year ended December 31, 2020, no grants were issued under any other scheme. |
Related party disclosures
Related party disclosures | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Related party disclosures | 27. Related party disclosures Compensation of key management personnel of the Company The remuneration of key management personnel of the Company is set out below in aggregate: Year ended December 31, 2021 2020 2019 £’000s £’000s £’000s Short-term benefits 4,018 4,479 3,488 Post-employment benefits 173 144 64 Share-based payment charge 2,559 875 1,152 Total 6,750 5,498 4,704 The amounts disclosed in the table above are the amounts recognized as an expense during the reporting period related to key management personnel. In 2021, key management personnel of the Company consisted of the executive director (the Chief Executive Officer), non-executive Employee Benefit Trust In 2016 the Company set up an Employee Benefit Trust (“EBT”). The EBT holds ADS’s to satisfy the exercise of options under the Company’s share-based incentive schemes (Note 26). No funding was loaned to the EBT by the Company during the year ended December 31, 2021 (2020: nil). During the year ended December 31, 2021, no ordinary shares were purchased by the EBT (2020: 7). |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Events after the reporting period | 28. Events after the reporting period In February 2022, the Company received a milestone payment of $2.0 million under the Navi License Agreement with OncXerna which resulted in a payment to CVR holders of a total of approximately $0.9 million, after deductions of costs, charges and expenditures. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Basis of preparation | Basis of preparation The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements are presented in pound sterling (“£”), which is the presentational currency of the Company. The functional currencies of consolidated subsidiaries are pound sterling and US dollars (“$”). All amounts disclosed in the consolidated financial statements and notes have been rounded to the nearest thousand, unless otherwise stated. The financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. |
Basis of consolidation | Basis of consolidation The consolidated financial information comprises the financial statements of Mereo BioPharma Group plc and its subsidiaries as at December 31, 2021. Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. Intercompany transactions, balances and unrealized gains on transactions between subsidiaries are eliminated in preparing the consolidated financial statements. Accounting policies of subsidiaries are consistent with the policies adopted by the Company. The Company has an employee share trust to facilitate share transactions pursuant to employee share schemes. Although the trust is a separate legal entity from the Company, it is consolidated into the Company’s results in accordance with the IFRS 10 rules on special purpose vehicles. The Company is deemed to control the trust principally because the trust cannot operate without the funding the Company provides. |
Segmental information | Segmental information The Company has one operating segment. The Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The Company has a single portfolio of product candidates, with only direct research and development expenses monitored at a product candidate level. The CODM makes decisions over resource allocation at an overall portfolio level and the Company’s financing is managed and monitored on a consolidated basis. Following the acquisition of Mereo BioPharma 5, Inc. (formerly OncoMed Pharmaceuticals, Inc. or “OncoMed”) in 2019, non-current non-current |
Going concern | Going concern The going concern basis has been applied in these consolidated financial statements as the Company has adequate resources to meet its liabilities as they fall due for the foreseeable future and at least 12 months from the date of these consolidated financial statements. The Company expects to incur significant operating losses for the foreseeable future as it continues its research and development efforts, seeks to obtain regulatory approval of its product candidates and pursues any future product candidates the Company may develop. Until such time as the Company can generate significant revenue from product sales, or other commercial revenues, if ever, or through licensing and/or collaboration agreements for its oncology or rare disease product candidates, the Company will seek to finance its operations through a combination of public or private equity or debt financings or other sources. |
Revenue | a) Revenue The Company’s ordinary business activities are the development of product candidates to key clinical milestones and either strategically partnering them or further developing such product candidates through regulatory approval and potentially commercialization. The Company may enter into a range of different agreements with third parties, including but not limited to: (i) licensing agreements where the global rights to a product candidate are licensed to a partner; and (ii) collaboration agreements where rights to a product candidate are licensed to a partner but the Company retains certain rights, for example to further develop or commercialize the product candidate in specified geographical territories. Under both licensing and collaboration agreements, rights to product candidates are provided to a partner typically in exchange for consideration in the form of upfront payments and/or development, regulatory, commercial or other similar milestones, and royalties on commercial sales, should regulatory approval be obtained for the product candidates. Revenue includes income from licensing and collaboration agreements. Consideration received up front is recognized at the point in time in which the right to use an intangible asset is transferred and further payments received are recognized upon the achievement of specified development, regulatory, commercial or other similar milestones. For agreements with a right to access an intangible asset, revenue is recognized over time, typically on a straight-line basis over the life of the license or collaboration agreement. When there are other performance obligations in such agreements, the consideration is allocated using the residual approach and recognized when the performance obligations are satisfied. Income from development, regulatory, commercial or similar milestones is recognized when considered highly probable that a significant reversal will not occur. Timing of the recognition of such milestones are considered to be a key judgment, as they are often dependent on third parties. In general, for milestones which are subject to the decisions of third parties (e.g. the acceptance or approval of a filing by a regulatory authority), the Company recognizes milestone income when the decision occurs. We do not currently have any approved product candidates. Accordingly, we have not generated any commercial sales revenue during the year. Intangible assets out-licensed under a license or collaboration agreement are recorded within “Cost of revenue” in the Company’s consolidated statement of comprehensive income/(loss) based on an allocation of cost or value of the rights that have been out-licensed. |
Research and development (R&D) expenses | b) Research and development (R&D) expenses Expenditure on product development is capitalized as an intangible asset and amortized over the expected useful economic life of the product candidate concerned. Capitalization commences from the point at which technical feasibility and commercial viability of the product candidate can be demonstrated and the Company is satisfied that it is probable that future economic benefits will result from the product candidate once completed. Capitalization ceases when the product candidate receives regulatory approval for launch. No such costs have been capitalized to date. Expenditure on R&D activities that do not meet the criteria for capitalization, including ongoing costs associated with acquired intellectual property rights and intellectual property rights generated internally by the Company, is recognized in the consolidated statement of comprehensive income as incurred. Intellectual property and in-process |
Taxation | c) Taxation Tax expense recognized in the consolidated statement of comprehensive income/(loss) comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity. Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the consolidated financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted, or substantively enacted, by the end of the reporting period in the jurisdictions in which the Company operates. Amounts receivable in respect of research and development tax credits are recognized in the consolidated financial statements provided there is sufficient evidence that the amounts are recoverable. These credits are recognized within income tax in the consolidated statement of comprehensive income/(loss). A provision is recognized for matters in which the tax determination is uncertain but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable. Deferred tax Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred income tax assets are recognized for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered. Deferred tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply in the year when the asset or liability is realized, based on tax rates (and tax laws) enacted or substantively enacted at the end of the reporting period. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. |
Foreign currencies | d) Foreign currencies Items included in the consolidated financial statements are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in pound sterling (“£”), which is the presentational currency of the Company. The functional currencies of consolidated subsidiaries are pound sterling and US dollars (“$”). Transactions in foreign currencies are initially recorded by the Company at the rate prevailing on the date the transaction first qualifies for recognition. Differences arising on settlement or translation of monetary items as well as gains or losses on the retranslation of foreign currency balances at the period-end The results and financial position of subsidiaries that have a functional currency different from the presentational currency of the Company are translated into the presentational currency (pound sterling). The assets and liabilities of such entities are translated into pound sterling at the rate of exchange prevailing at the balance sheet date. Income and expenses are translated at the average rate for the period. Fair value adjustments arising on acquisition of such entities are treated as assets and liabilities of the relevant entity and translated into pound sterling at the closing rate. The exchange differences arising on translation for consolidation are recognized in other comprehensive income/(loss). |
Property, plant and equipment | e) Property, plant and equipment Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment if the recognition criteria are met. All other repair and maintenance costs are recognized in profit or loss as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Useful lives of various property, plant and equipment are as follows: • Leasehold improvements shorter of lease term or ten years • Office equipment five years • IT equipment three years Property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of comprehensive income/(loss) when the asset is derecognized. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed annually and adjusted prospectively, if appropriate. |
Business combinations | f) Business combinations Business combinations are accounted for using the acquisition method of accounting. At the date of acquisition, the Company initially recognizes the fair value of the identifiable assets acquired, the liabilities assumed and any non-controlling The consideration transferred is measured at fair value at the date of acquisition. The excess of the consideration transferred over the fair value of net identifiable assets of the business acquired is recorded as goodwill, unless the amount of consideration transferred is less than the fair value of net identifiable assets of the business acquired in which case the difference is recognized directly in the consolidated statement of comprehensive income/(loss) as a bargain purchase. A valuation is performed of assets and liabilities assumed on each acquisition accounted for as a business combination based on our best estimate of fair value. Where the settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value. Contingent consideration is classified either as equity or a financial liability and is recognized at fair value on the acquisition date. Amounts classified as a financial liability are subsequently remeasured to fair value in accordance with IFRS 9 (Financial Instruments), with changes in fair value recognized in the consolidated statement of comprehensive income/(loss) as an administrative expense. Directly attributable acquisition-related costs are expensed as incurred within the consolidated statement of comprehensive income/(loss). |
Leases | g) Leases Effective January 1, 2019, the Company adopted IFRS 16 (Leases) using the modified retrospective approach. The Company assesses whether a contract is, or contains, a lease at inception of the contract. The Company recognizes a right-of-use The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of fixed lease payments, less any lease incentives receivable. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use The right-of-use The right-of-use Right-of-use • Right-of-use six • Right-of-use one When the Company is an intermediate lessor, it accounts for the head lease and the sub-lease sub-lease fer right-of-use |
Intangible assets | h) Intangible assets Intangible assets are initially recorded at cost which has been determined as the fair value of the consideration paid and payable. Assets that have been acquired through a business combination are initially recorded at fair value. The fair value of consideration is regularly reviewed based on the probability of achieving contractual milestones. Refer to policy on provision for deferred cash consideration below. Where the consideration paid or payable is in shares, the cost is measured in accordance with IFRS 2 (Share Based Payments). Intangible assets that are not yet available for use are reviewed for impairment at each reporting date by allocating the assets to the cash-generating units to which they relate. The estimated useful life is the lower of the legal duration and economic useful life. The estimated useful lives of intangible assets are reviewed at least annually. Intangible assets are amortized from the date they are available for commercial use. No amortization has been recognized to date. An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized. |
Financial instruments | i) Financial instruments Financial assets and liabilities are recognized in the consolidated balance sheet only when the Company becomes party to the contractual provisions of the instrument. Financial assets On initial recognition, a financial asset is classified into one of three primary measurement categories: • Amortized cost; • Fair value through other comprehensive income (“FVOCI”); or • Fair value through profit or loss (“FVTPL”). The initial classification into a primary measurement category depends on the nature and purpose of the financial asset. For short-term investments, interest income and impairment gains or losses are recognized directly in the consolidated statement of comprehensive income. The difference between cumulative fair value gains or losses and the cumulative amounts recognized in the consolidated statement of comprehensive income/(loss) is recognized in other comprehensive income until derecognition, when the amounts in other comprehensive income are reclassified to the consolidated statement of comprehensive income/(loss). Classification as debt or equity Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Embedded derivatives An embedded derivative is a component of a hybrid contract that also includes a non-derivative Convertible loan notes Convertible loan notes are regarded as compound instruments consisting of a liability component and an equity component. At the date of issue, the fair value of the liability component is estimated using a discount rate for an equivalent liability without the conversion feature. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or at the instrument’s maturity date. The difference between the proceeds from the issue of the convertible loan note and the fair value assigned to the liability component is included in equity and not subsequently remeasured. Upon conversion, the amount initially recognized in “Other capital reserves” will be transferred to “Share premium”. Financial liabilities All financial liabilities are measured subsequently at amortized cost using the effective interest method or at FVTPL. Borrowings (including interest-bearing loans) are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Under the effective interest method, amortization is included as a finance cost in the consolidated statement of comprehensive income/(loss). Non-substantial Borrowings are derecognized from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The warrant instruments are recorded at fair value, with changes in the fair value recognized in the consolidated statement of comprehensive income/(loss), where the terms of the warrant instruments allow for cashless exercise. |
Fair value measurement | j) Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities. • Level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. • Level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. |
Impairment of non-financial assets | k) Impairment of non-financial Further disclosures relating to impairment of non-financial • Disclosures for significant assumptions Note 3 • Property, plant and equipment Note 12 • Intangible assets not yet available for use Notes 13 and 14 At each reporting date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax Impairment losses are recognized in the consolidated statement of comprehensive income/(loss) in expense categories consistent with the function of the impaired asset. An assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated statement of comprehensive income/(loss) unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase. |
Cash and short-term deposits | l) Cash and short-term deposits Cash and short-term deposits in the balance sheet comprise cash at banks and on hand along with short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value. |
Provisions | m) Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the consolidated statement of comprehensive income/(loss) net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax Where contingent payments relate to future use of the in-licensed |
Provision for deferred cash consideration | n) Provision for deferred cash consideration Provision for deferred cash consideration consists of future payments which are contractually committed but not yet certain. In respect of products which are not yet approved, such deferred cash consideration excludes potential milestones, royalties or other payments that are deemed to be so uncertain as to be unquantifiable. Deferred cash consideration is recognized as a liability with the amounts calculated as the risk adjusted net present value of anticipated deferred payments. The provision is reviewed at each balance sheet date and adjusted based on the likelihood of contractual milestones being achieved and therefore the deferred payment being settled. Increases in the provision relating to changes in the probability are recognized as an intangible asset. Increases in the provision relating to the unwinding of the time value of money are recognized as a finance expense. |
Share-based payments | o) Share-based payments Employees (including executives) and non-executive non-executive Incentives in the form of shares are provided to employees and non-executive In accordance with IFRS 2 Share-based Payments (“IFRS 2”), charges for these incentives are expensed through the consolidated statement of comprehensive income/(loss) on a straight-line basis over their vesting period, based on the Company’s estimate of shares that will eventually vest. The total amount to be expensed is determined by reference to the fair value of the options or awards at the date they were granted. For LTIP shares, the fair value on grant date excludes the impact of any non-market Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. In accordance with IFRS 2, the cancellation of share options is accounted for as an acceleration of the vesting period and therefore any amount unrecognized that would otherwise have been charged in future accounting periods is recognized immediately. When options are forfeited, the accounting expense for any unvested awards is reversed. |
Costs of issuing capital | p) Costs of issuing capital Incremental costs incurred and directly attributable to the offering of equity securities are deducted from the related proceeds of the offering. The net amount is recorded as share premium in the period when such shares are issued. Where such expenses are incurred prior to the offering they are recorded in prepayments until the offering completes. Other costs incurred in such offerings are expensed as incurred and included in general and administrative expenses. |
Employee Benefit Trust | q) Employee Benefit Trust The Company operates an Employee Benefit Trust (“EBT”), the Mereo BioPharma Group plc Employee Benefit Trust. The EBT holds ADS’s to satisfy the exercise of options under the Company’s share-based incentive schemes (Note 26). The EBT is a Jersey-based trust which was initially funded by a loan from the Company, which it utilized to purchase shares in sufficient quantity to fulfill the envisaged awards. The Company will issue ordinary shares to a custodian for conversion by a depositary bank to ADS’s and delivery to the EBT. These ordinary shares will be deducted from the shareholders’ funds on the consolidated balance sheet at their nominal value. Shares held by the EBT are included in the consolidated balance sheet as a reduction in equity. |
Pension contribution costs | r) Pension contribution costs Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Depreciation Calculated on Straight-Line Basis Over Estimated Useful Lives of Assets | Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Useful lives of various property, plant and equipment are as follows: • Leasehold improvements shorter of lease term or ten years • Office equipment five years • IT equipment three years |
Summary of Estimated Useful lives of Right of Use Assets | The right-of-use Right-of-use • Right-of-use six • Right-of-use one |
Group information (Tables)
Group information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments accounted for using equity method [abstract] | |
Summary of Information About Subsidiaries of the Group | The consolidated financial statements of the Company include: Name Principal activities Country of % Equity % Equity Mereo BioPharma 1 Limited Pharmaceutical R&D UK 100 100 Mereo BioPharma 2 Limited Pharmaceutical R&D UK 100 100 Mereo BioPharma 3 Limited Pharmaceutical R&D UK 100 100 Mereo BioPharma 4 Limited Pharmaceutical R&D UK 100 100 Mereo BioPharma Ireland Limited Pharmaceutical R&D Ireland 100 100 Mereo BioPharma 5, Inc. Pharmaceutical R&D U.S. 100 100 Navi Subsidiary, Inc. Pharmaceutical R&D U.S. 100 100 Mereo US Holdings, Inc. Holding company U.S. 100 100 Mereo BioPharma Group plc Employee Benefit Trust Employee share scheme Jersey – – |
Profit_(loss) before tax (Table
Profit/(loss) before tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule Of Detailed Information About Profit Before Tax [Abstract] | |
Summary of Profit before tax is stated after charging | Profit/(loss) before tax is stated after charging: Year ended December 31, 2021 2020 2019 Fees payable to the Company’s Auditor for the audit of the consolidated accounts 358 449 514 Fees payable to the Company’s Auditor for other services: Audit of subsidiary accounts 46 49 45 Audit-related assurance services 57 318 311 Gain on modification of lease – (957 ) – Income from sub-lease – (646 ) (855 ) Depreciation of right-of-use 570 1,531 1,505 Depreciation (excluding right-of-use 72 68 52 |
Employees (Tables)
Employees (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Average Monthly Persons Employed By Group | The average monthly number of persons employed by the Company during the year was: Year ended December 31, 2021 2020 2019 By activity: Administrative 26 22 28 Research and development 19 17 18 Total 45 39 46 |
Summary of Employee | Total compensation costs for persons employed by the Company (including Directors) during the year was: Year ended December 31, 2021 2020 2019 Included in research and development expenses: Salaries 4,126 3,046 2,824 Social security costs 402 397 110 Pension contributions 73 66 62 Share-based payment expenses 1,210 446 152 Included in administrative expenses: Salaries 3,763 4,832 3,384 Social security costs 418 681 (124 ) Pension contributions 99 89 114 Share-based payment expenses 2,092 1,112 1,485 Total 12,183 10,669 8,007 |
Summary of Compensation Cost For Directors | Total compensation costs for Directors during the year was: Year ended December 31, 2021 2020 2019 Salaries and fees 810 1,114 1,106 Benefits in kind 9 14 17 Pension contributions 58 61 25 Bonus 239 538 294 Total 1,116 1,727 1,442 |
Other income_expenses and adj_2
Other income/expenses and adjustments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Finance Income | Finance income Year ended December 31, 2021 2020 2019 Bank interest earned 1 5 42 Interest earned on short-term investments – – 141 Gain on short-term investments – 39 194 Total 1 44 377 |
Summary of Finance Costs | Finance costs Year ended December 31, 2021 2020 2019 Interest on convertible loan notes (3,549 ) (2,241 ) (20 ) Interest on bank loan – (2,900 ) (1,739 ) Interest on lease liabilities (227 ) (1,085 ) (1,314 ) Accreted interest on bank loan – – (1,523 ) Modification gain on bank loan – – 456 Discounting of provision for deferred cash consideration (225 ) (157 ) (221 ) Other (21 ) – (10 ) Total (4,022 ) (6,383 ) (4,371 ) |
Summary of Changes In The Fair Value Of Financial Instruments | Changes in the fair value of financial instruments Year ended December 31, 2021 2020 2019 Changes in the fair value of warrants – private placement 39,535 (45,977 ) – Changes in the fair value of warrants – bank loan 504 (714 ) 875 Changes in the fair value of embedded derivative – (63,158 ) – Total 40,039 (109,849 ) 875 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Income Tax Credit | Year ended December 31, 2021 2020 2019 Tax charge (1,516 ) – – UK corporation tax R&D credit – 2,822 5,149 Other tax income – – 1,125 Total (1,516 ) 2,822 6,274 |
Summary of Reconciliation to the Earnings Loss Per Income Statement | Reconciliation of effective tax rate Year ended December 31, 2021 £’000s 2020 £’000s 2019 £’000s Profit/(loss) on ordinary activities before income tax 14,241 (166,450 ) (41,118 ) Tax on profit at standard U.K. (2,706 ) 31,626 7,812 Expenses not deductible for income tax purposes (permanent differences) (708 ) (13,270 ) (317 ) Income not taxable 78 4 – Temporary timing differences (65 ) – (343 ) R&D relief uplift 1,435 1,214 2,540 Losses (unrecognized) (345 ) (14,479 ) (4,380 ) Deferred income from MBG loan guarantee costs – – (54 ) Foreign tax 505 184 – Differences in overseas tax rates 286 261 340 Derecognition of deferred tax – (2,686 ) – Gain on bargain purchase – – 699 Other 4 (32 ) (23 ) Tax (charge)/credit for the year (1,516 ) 2,822 6,274 |
Summary of Deferred Tax | The analysis of unrecognized deferred tax is set out below: Year ended December 31, 2021 £’000s 2020 £’000s 2019 £’000s Losses 44,683 37,021 19,443 Loan relationships 73 421 – U.S. 10,557 9,880 10,032 Accruals – – 947 Fixed assets – 414 400 Share options 151 55 – Other U.S. 31 86 – Other – 137 202 Temporary differences 56 18 4 Net deferred tax asset (unrecognized) 55,551 48,032 31,028 |
Summary of analysis of recognized deferred tax | The analysis of recognized deferred tax is set out below: At January 1, Recognized At £’000s £’000s £’000s Deferred tax liabilities Intangible asset and right-of-use (96 ) 76 (20 ) Deferred tax asset Net operating losses and lease liability 96 (76 ) 20 Net deferred tax asset/(liability) |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Summary Of Earnings Per Share | Year ended December 31, 2021 2020 2019 Numerator – Basic earnings per share (£’000s): Profit/(loss) attributable to equity holders of the parent 12,725 (163,628 ) (34,844 ) Denominator – Basic earnings per share: Weighted average number of ordinary shares 527,818,648 338,953,141 89,424,476 Profit/(loss) per share – basic (£) 0.02 (0.48 ) (0.39 ) Numerator – Diluted earnings per share (£’000s): Profit/(loss) attributable to equity holders of the parent 12,725 (163,628 ) (34,844 ) Effect of dilutive ordinary shares (38,523 ) — — Numerator – Diluted earnings per share (25,798 ) (163,628 ) (34,844 ) Denominator – Diluted earnings per share: Number of ordinary shares used for basic earnings per share 527,818,648 338,953,141 89,424,476 Weighted average effect of dilutive ordinary shares 27,457,163 — — Weighted average number of diluted ordinary shares outstanding 555,275,811 338,953,141 89,424,476 Loss per share – diluted (£) (0.05 ) (0.48 ) (0.39 ) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment | Right-of-use Right-of-use Leasehold Office IT Total £’000s £’000s £’000s £’000s £’000s £’000s Cost or valuation At January 1, 2021 1,848 1,169 164 71 132 3,384 Additions 923 — 393 109 48 1,473 Lease modification 133 30 — — — 163 Disposals — (868 ) — (7 ) — (875 ) Currency translation effects (1 ) (36 ) — — — (37 ) At December 31, 2021 2,903 295 557 173 180 4,108 Depreciation At January 1, 2021 (531 ) (1,023 ) (85 ) (65 ) (107 ) (1,811 ) Disposals — 868 — 7 — 874 Depreciation for the year (494 ) (76 ) (39 ) (11 ) (22 ) (642 ) At December 31, 2021 (1,025 ) (231 ) (124 ) (69 ) (129 ) (1,578 ) Net book value At January 1, 2021 1,318 146 79 6 25 1,573 At December 31, 2021 1,878 64 433 104 51 2,530 Right-of-use Right-of-use Leasehold Office IT Total £’000s £’000s £’000s £’000s £’000s £’000s Cost or valuation At January 1, 2020 11,877 1,024 164 71 116 13,252 Additions — — — — 16 16 Lease modification (10,220 ) 149 — — — (10,071 ) Currency translation effects 191 (4 ) — — — 187 At December 31, 2020 1,848 1,169 164 71 132 3,384 Depreciation At January 1, 2020 (996 ) (509 ) (69 ) (30 ) (90 ) (1,694 ) Lease modifications 1,482 — — — — 1,482 Depreciation for the year (1,017 ) (514 ) (16 ) (35 ) (17 ) (1,599 ) At December 31, 2020 (531 ) (1,023 ) (85 ) (65 ) (107 ) (1,811 ) Net book value At January 1, 2020 10,881 515 95 41 26 11,558 At December 31, 2020 1,318 146 79 6 25 1,573 |
Summary of the maturity of lease liabilities | The maturity of lease liabilities as of December 31, 2021 are as follows: Within 1 Between Between Over 5 Total £’000s £’000s £’000s £’000s £’000s Maturity of lease liabilities 622 972 782 — 2,376 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Detailed Information about Intangible Assets | Acquired £’000s Cost At January 1, 2020 45,527 Disposals (13,386 ) Currency translation effects 864 At December 31, 2020 33,005 At December 31, 2021 33,005 Revisions to estimated value At January 1, 2020 (1,071 ) Revisions to estimated value (286 ) At December 31, 2020 (1,357 ) Revisions to estimated value 2,373 Out-license (9,457 ) At December 31, 2021 (8,441 ) Net book value At January 1, 2020 44,456 At December 31, 2020 31,648 At December 31, 2021 24,564 |
Impairment testing of acquire_2
Impairment testing of acquired development programs not yet available for use (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Carrying Amount of Acquired Development Programs | Acquired development programs not yet available for use are assessed annually for impairment. The carrying amount of acquired development programs is as follows: December 31, 2021 2020 £’000s £’000s BPS-804 2,159 11,616 MPH-966 8,208 5,835 BSG-649 9,886 9,886 BCT-197 4,311 4,311 Total 24,564 31,648 |
Other receivables (Tables)
Other receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Other Receivables | December 31, 2021 2020 £’000s £’000s Lease deposits 408 407 VAT recoverable 387 370 Other 624 239 Total 1,419 1,016 |
Cash and short-term deposits (T
Cash and short-term deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Cash and Short-term Deposits | December 31, 2021 2020 £’000s £’000s Cash 93,727 22,922 Short-term deposits 569 547 Total 94,296 23,469 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Trade and Other Payables | December 31, 2021 2020 £’000s £’000s Trade payables 2,285 3,165 Social security and other taxes 190 146 Other payables 24 22 Total 2,499 3,333 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Provisions | December 31, 2021 2020 £’000s £’000s Social security contribution on vested share options — 109 Provision for deferred cash consideration 4,123 1,525 Total 4,123 1,634 Current 2,803 418 Non-current 1,320 1,216 |
Summary of Social Security Contributions on Share Options | Social security Deferred cash £’000s £’000s At January 1, 2020 104 1,654 Arising/(released) during the year, net 5 — Increase in provision due to the unwinding of the time value of money — 157 Decrease in provision due to a change in estimates relating to timelines and probabilities of contractual milestones being achieved (revision to intangible asset, see Note 13) — (286 ) At December 31, 2020 109 1,525 Arising/(released) during the year, net (109 ) — Increase in provision due to the unwinding of the time value of money — 225 Increase in provision due to a change in estimates relating to timelines and probabilities of contractual milestones being achieved (revision to intangible asset, see Note 13) — 2,373 At December 31, 2021 — 4,123 |
Warrant liability (Tables)
Warrant liability (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Warrant Liability | December 31, 2021 2020 £’000s £’000s January 1 50,775 131 Issued during the year — 4,080 Settled during the year (2,400 ) (127 ) Fair value changes during the year (40,039 ) 46,691 At December 31 8,336 50,775 |
Summary of Weighted Average Inputs to the Models Used for the Fair Value of Warrants Granted | The following table lists the weighted average inputs to the models used for the fair value of warrants: December 31, 2021 2020 Expected volatility (%) 75 84-85 Risk-free interest rate (%) 0.9 0.25-(0.05) Expected life of warrants (years) 1.5 3 Market price of ADS ($) $ 1.60 $ 3.58 Model used Black-Scholes Black-Scholes |
Convertible loan notes (Tables)
Convertible loan notes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Interest-bearing Loans and Borrowings | December 31, 2021 2020 £’000s £’000s Novartis Loan Note 3,771 3,196 Loan Notes – private placement 10,613 12,946 Total 14,384 16,142 Current — — Non-current 14,384 16,142 |
Disclosure of movements in the carrying value of the liability component of the loan notes | The movements in the carrying value of the liability component of the Loan Notes is included in the table below. Refer to Note 22 for details of Loan Notes converted to equity. Year ended December 31, 2021 2020 £’000s £’000s January 1 12,946 — Issued — 24,417 Interest charge 2,974 1,803 Converted to equity (5,307 ) (13,274 ) December 31 10,613 12,946 |
Disclosure of movements in the carrying value of the embedded derivative | Year ended December 31, 2020 £’000s January 1 — Arising during the year 11,913 Change in fair value 63,158 Reclassified to equity (75,071 ) December 31 — |
Disclosure of the inputs into the model used to fair value the embedded derivative | December 31, 2020 June 30, 2020 June 3, 2020 Expected volatility — 61 61 Risk-free interest rate (%) — 0.19 0.27 Credit spread % — 1.86 2.01 Expected life — 3 3 Market price of ordinary shares (£) — 0.46 0.19 Probability of resolutions passing (%) — 100 90 Models used — Discounted cash flow/Black-Scholes Discounted cash flow/Black-Scholes |
Issued capital and reserves (Ta
Issued capital and reserves (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Detailed Information of Ordinary Share Capital | Ordinary Ordinary Share Number £’000s £’000s As at January 1, 2019 71,240,272 214 118,492 Issued on April 23, 2019 24,783,320 74 — Issued on June 21, 2019 1,936,030 6 3,953 Transaction costs for issued share capital — — (761 ) As at December 31, 2019 97,959,622 294 121,684 Issued on February 11, 2020 14,295,520 43 2,511 Issued on February 20, 2020 12,252,715 37 2,267 Issued on June 4, 2020 89,144,630 267 15,244 Issued on June 30, 2020 125,061,475 375 21,386 Issued on December 23, 2020 239,179 1 — Transaction costs for issued share capital — — (1,307 ) As at December 31, 2020 338,953,141 1,017 161,785 Issued during the year 245,955,098 738 85,909 Transaction costs for issued share capital — — (234 ) As at December 31, 2021 584,908,239 1,755 247,460 |
Summary of Other Capital Reserves | Other capital reserves Shares Share- Equity Other Merger Other Total £’000s £’000s £’000s £’000s £’000s £’000s £’000s At January 1, 2019 1,590 16,649 310 44 — — 18,593 Acquisition of Mereo BioPharma 5, Inc. — — — — 40,818 — 40,818 Shares issued during the year (1,590 ) — — — — — (1,590 ) Convertible loan conversion — — (310 ) — — — (310 ) Share based payments expense during the year — 1,636 — — — — 1,636 At December 31, 2019 — 18,285 — 44 40,818 — 59,147 Share based payments expense during the year — 1,558 — — — — 1,558 Novartis convertible loan note instrument and warrants — — 1,084 — — — 1,084 Conversion of Loan Notes — — — — — 33,104 33,104 Reclassification of the embedded derivative — — 33,481 — — — 33,481 At December 31, 2020 — 19,843 34,565 44 40,818 33,104 128,374 Share based payments expense during the year — 3,302 — — — — 3,302 Share options exercised — (119 ) — — — — (119 ) Conversion of Loan Notes — — (1,722 ) — — — (1,722 ) At December 31, 2021 — 23,026 32,843 44 40,818 33,104 129,835 |
Summary of Accumulated Loss | Year ended December 31, 2021 2020 2019 Other reserves 7,401 5,001 7,000 Accumulated losses (296,968 ) (309,693 ) (146,065 ) |
Changes in liabilities arisin_2
Changes in liabilities arising from financing activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Changes in Liabilities Arising from Financing Activities | Contingent Lease Bank Novartis Warrant Deferred Loan Other Total £’000s £’000s £’000s £’000s £’000s £’000s £’000s £’000s £’000s Carrying value at January 1, 2020 354 11,904 20,512 — 131 1,654 — 44 34,599 Settled during the year (354 ) — (23,412 ) — (127 ) — — — (23,893 ) Financing cash flows — (2,086 ) — 2,758 — — 36,330 18 37,020 Issuance of warrants — — — — 4,080 — — — 4,080 Interest expense — 1,085 2,900 438 — — 1,803 — 6,226 Lease modification — (9,547 ) — — — — — — (9,547 ) Changes in fair values — — — — 46,691 (129 ) 63,158 — 109,720 Changes in foreign exchange — 438 — — — — — — 438 Reclassified to equity — — — — — — (88,345 ) — (88,345 ) Carrying value at December 31, 2020 — 1,794 — 3,196 50,775 1,525 12,946 62 70,298 Financing cash flows — (692 ) — — — — — — (692 ) Non-cash Settled during the year — — — — (2,400 ) — (5,307 ) — (7,707 ) Interest expense — 230 — 575 — 206 2,974 18 4,003 Lease addition — 910 — — — — — — 910 Lease modification — 163 — — — — — — 163 Changes in fair values — — — — (40,039 ) 2,373 — — (37,666 ) Changes in foreign exchange — (29 ) — — — 19 — — (10 ) Carrying value at December 31, 2021 — 2,376 — 3,771 8,336 4,123 10,613 80 29,299 |
Financial and capital risk ma_2
Financial and capital risk management and fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Fair Value Hierarchy | Fair value measurement using Liabilities measured at fair Date of valuation Total Quoted prices Significant Significant (Level 3) £’000s £’000s £’000s £’000s Provision for deferred consideration (Note 18) December 31, 2021 4,123 — — 4,123 Warrant liability (Note 20) December 31, 2021 8,336 — 341 7,995 Fair value measurement using Liabilities measured at fair Date of valuation Total Quoted prices Significant Significant (Level 3) £’000s £’000s £’000s £’000s Provision for deferred consideration (Note 18) December 31, 2020 1,525 — — 1,525 Warrant liability (Note 20) December 31, 2020 50,775 — 845 49,930 |
Summary of the Changes in Level 3 | The following table presents the changes in Level 3 items for the periods ended December 31, 2021 and December 31, 2020: Provision for Provision for Warrant £’000s £’000s £’000s January 1, 2020 1,654 354 — Issued during the year — — 4,080 Settled during the year — (354 ) (127 ) Unwinding of the time value of money (recognized as a finance cost) 157 — — Change in estimate relating to probabilities (revision to intangible asset, see Note 13) (286 ) — — Change in fair value — — 45,977 December 31, 2020 1,525 — 49,930 Settled during the year — — (2,400 ) Unwinding of the time value of money (recognized as a finance cost) 225 — — Change in estimate relating to probabilities (revision to intangible asset, see Note 13) 2,373 — — Change in fair value — — (39,535 ) December 31, 2021 4,123 — 7,995 |
Summary of Changes In Significant Unobservable Inputs Under Valuation Model Used In Level Fair Value Measurement | The significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy, together with a quantitative sensitivity analysis as at December 31, 2021 and 2020 are as follows: Valuation technique Significant unobservable inputs Input range (weighted average) Sensitivity of the input to fair value Provision for deferred cash consideration Discounted cash flow WACC 2021: 12% 1% increase/decrease would result in a decrease/increase in fair value by £31,000 WACC 2020: 12% 1% increase/decrease would result in a decrease/increase in fair value by £25,000 Probability of success 2021:40.6% - 81.2% 10% increase/decrease would result in an increase/decrease in fair value by £0.5 million Probability of success 2020: 13.8%–95% 10% increase/decrease would result in an increase/decrease in fair value by £0.4 million Contingent consideration liability Discounted cash flow Ongoing uncertainty in the clinical development of the Navi product Total potential payments future payments relating to the contingent consideration liability on a gross, undiscounted basis are approximately $80 million. Regulatory approval and commercialization risks Sensitivity of the input to fair value is primarily driven by uncertainty in the clinical development of the Navi product. Future potential payments under the CVR arrangement are contingent on i) future development milestones and ii) future sales of the Navi product, following regulatory approval and commercialization. In January 2020, the Company entered into the license agreement as detailed in Note 13. Although pursuant to the license agreement the Company is entitled to additional payments of up to $302 million, there continues to be significant uncertainty in respect of any milestone and royalty payments under the license agreement. Warrant liability related to the private placement Black- Scholes model Expected volatility 2021:75.1% Volatility was estimated by reference to the 1.4 years historical volatility of the historical share price of the Company, matching the maturity of the instrument. If the volatility is decreased to 67.4% based on 1-year Expected volatility 2020: 85.1% Volatility was estimated by reference to the six-month historical If the volatility is increased to 93.8% based on three-month historical volatility, the carrying value of the warrants as of December 31, 2020 would have increased to £52.9 million. |
Summary of Maturity Profile of Financial Liabilities Based on Contractual Undiscounted Payments | The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments at December 31, 2021: Up to 1 year 1-3 years 3-5 years Over 5 years Total £’000s £’000s £’000s £’000s £’000s Leases 781 1,222 835 — 2,838 Trade and other payables 2,499 — — — 2,499 Accruals 3,826 — — — 3,826 |
Detailed Information About Cash And Cash Equivalents By Currency Type | The table below shows analysis of the pound sterling equivalent of period-end December 31, 2021 2020 £’000s £’000s Pound sterling 92,104 17,809 U.S. dollars 2,018 5,586 Swiss francs 9 9 Euro 165 65 Total 94,296 23,469 |
Detailed Onformation About Gain Loss On Foreign Currency Translaction Recognized In Income Statement | The table below shows those transactional exposures that give rise to net currency gains and losses recognized in the consolidated statement of comprehensive income/(loss). Such exposures comprise the net monetary assets and monetary liabilities of the Company that are not denominated in the functional currency of the relevant subsidiary. As at December 31, these exposures were as follows: December 31, 2021 2020 Net foreign currency assets/(liabilities): £ ’000s £ ’000s U.S. dollars 920 4,088 Swiss francs 9 9 Euro (142 ) (513 ) Total 787 3,584 |
Summary of sensitivity analyis of currency movement | The following table illustrates the sensitivity to a 10% weakening or strengthening in the period-end December 31, 2021 U.S. dollar Euro £’000s £’000s Profit before tax (84 ) 13 Equity (84 ) 13 December 31, 2020 U.S. dollar Euro £’000s £’000s Profit before tax (372 ) 47 Equity (372 ) 47 |
Summary of Financial instruments by category | Fair value Amortized cost 2021 2020 2021 2020 Financial assets £ ’000s £ ’000s £ ’000s £ ’000s Cash and short-term deposits — — 94,296 23,469 Other receivables — — 1,032 646 Total financial assets — — 95,328 24,919 Financial liabilities Provisions 4,123 1,634 — — Convertible loan notes — — 14,384 16,142 Warrant liability 8,336 50,775 — — Trade and other payables — — 2,309 3,187 Accruals — — 3,826 4,178 Lease liability — — 2,376 1,794 Total financial liabilities 12,459 52,409 22,895 25,301 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Statement [LineItems] | |
Summary of Share-based Payments | The charge for share-based payments arises across the following schemes: Year ended 2021 2020 2019 £’000s £’000s £’000s 2019 Equity Incentive Plan 2,860 922 635 2019 NED Equity Incentive Plan 499 167 160 2015 Plan — 3 63 Mereo BioPharma Group plc Share Option Plan 68 376 685 Long Term Incentive Plan (125 ) 90 93 Total 3,302 1,558 1,636 |
Summary of Number and Weighted Average Exercise Prices (WAEP) of, and Movements in, Options | The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, options for the 2019 EIP and 2019 NED EIP during the year-ended December 31, 2021: 2019 EIP 2019 NED EIP Options Number WAEP $ Options Number WAEP $ Outstanding at January 1, 2021 1,567,873 2.94 149,416 3.06 Granted during the year 2,696,960 2.83 296,000 2.81 Cancelled during the year (253,277 ) 2.66 (23,625 ) 2.72 Forfeited during the year (28,521 ) 5.37 — — Exercised during the year (39,333 ) 2.11 — — Outstanding at December 31, 2021 3,943,702 2.88 421,791 2.90 Exercisable at December 31, 2021 727,698 3.16 386,623 2.91 The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, options for the 2019 EIP and 2019 NED EIP during the year-ended December 31, 2020: 2019 EIP 2019 NED EIP Options ADS Number WAEP $ Options Number WAEP $ Outstanding at January 1, 2020 798,050 4.29 77,000 4.20 Granted during the year 1,167,836 2.00 77,000 1.84 Cancelled during the year (406 ) 5.40 — — Forfeited during the year (397,607 ) 2.87 (4,584 ) 1.84 Exercised during the year — — — — Outstanding at December 31, 2020 1,567,873 2.94 149,416 3.06 Exercisable at December 31, 2020 259,829 4.42 138,412 3.15 |
Summary of Weighted Average Inputs to the Models Used for the Fair Value of Share Options Granted | The following table includes the weighted average inputs to the models used for the fair value of share options granted during the year ended December 31, 2021: 2019 EIP 2019 NED EIP Expected volatility (%) 97 98 Risk-free interest rate (%) 1.15 1.09 Expected life of share options (years) 10 10 Market price of ADS’s ($) 2.83 2.81 Model used Black-Scholes Black-Scholes During the year ended December 31, 2021, no grants were issued under any other scheme. The following table includes the weighted average inputs to the models used for the fair value of share options granted during the year ended December 31, 2020: 2019 EIP 2019 NED EIP Expected volatility (%) 67 68 Risk-free interest rate (%) 0.59 0.64 Expected life of share options (years) 10 10 Market price of ADS’s ($) 1.99 1.84 Model used Black-Scholes Black-Scholes During the year ended December 31, 2020, no grants were issued under any other scheme. |
2015 Plan [member] | |
Statement [LineItems] | |
Summary of Number and Weighted Average Exercise Prices (WAEP) of, and Movements in, Options | 2021 2020 Number WAEP £ Number WAEP £ Outstanding at January 1, 2021 8,923,600 1.32 8,923,600 1.32 Forfeited during the year (625,906 ) 1.29 — — Outstanding at December 31, 2021 8,297,694 1.31 8,923,600 1.32 Exercisable at December 31, 2021 8,297,694 1.31 8,923,600 1.32 |
Mereo BioPharma Group plc Share Option Plan [member] | |
Statement [LineItems] | |
Summary of Number and Weighted Average Exercise Prices (WAEP) of, and Movements in, Options | The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, options for the Option Plan during the year: 2021 2020 Number WAEP £ Number WAEP £ Outstanding at January 1, 2021 1,411,395 3.14 1,524,065 3.07 Forfeited during the year (87,430 ) 3.11 (112,670 ) 3.03 Outstanding at December 31, 2021 1,323,965 3.04 1,411,395 3.14 Exercisable at December 31, 2021 1,323,965 3.04 1,210,410 3.01 |
Long-term incentive plan [member] | |
Statement [LineItems] | |
Summary of Number and Movements in Long Term Incentive Plan Options | The fair value calculations do not include any allowance for dividends as the Company has no available profits for distribution. The contractual term of the LTIP options is five years. 2021 2020 Outstanding at January 1 482,748 910,072 Lapsed during the year (482,748 ) (427,324 ) Outstanding at December 31 — 482,748 Exercisable at December 31 — — |
Related party disclosures (Tabl
Related party disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary Of Compensation of key management personnel of the Group | The remuneration of key management personnel of the Company is set out below in aggregate: Year ended December 31, 2021 2020 2019 £’000s £’000s £’000s Short-term benefits 4,018 4,479 3,488 Post-employment benefits 173 144 64 Share-based payment charge 2,559 875 1,152 Total 6,750 5,498 4,704 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
OncoMed [Member] | ||
Disclosure of related to geographical location of assets [Line Items] | ||
Acquisition of non-current assets | £ 0.1 | £ 0.5 |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Depreciation Calculated on Straight-Line Basis Over Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | shorter of lease term or ten years |
Office equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 5 years |
IT equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 3 years |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Depreciation Method For Right of Use Assets And Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Building [member] | Bottom of range [member] | |
Statement [line items] | |
Useful life of right-of-use asset | 6 years |
Building [member] | Top of range [member] | |
Statement [line items] | |
Useful life of right-of-use asset | 9 years |
Equipment | Bottom of range [member] | |
Statement [line items] | |
Useful life of right-of-use asset | 1 year |
Equipment | Top of range [member] | |
Statement [line items] | |
Useful life of right-of-use asset | 2 years |
Significant judgments, estima_2
Significant judgments, estimates and assumptions - Additional Information (Detail) £ in Millions, shares in Millions, $ in Millions | Aug. 23, 2019GBP (£)shares | Dec. 31, 2021GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2020GBP (£) | Apr. 23, 2019 |
Significant Accounting Judgments Estimates And Assumption [Line Items] | |||||
Fair value of the contingent consideration liability | £ 0 | £ 0 | |||
Potential payments under the CVR arrangement | £ 58.6 | $ 80 | |||
Percentage of voting equity interests acquired | 100.00% | ||||
Net identifiable assets | £ 44.6 | ||||
Equity instruments (24.8 million ordinary shares) | £ 40.9 | ||||
OncoMed [Member] | |||||
Significant Accounting Judgments Estimates And Assumption [Line Items] | |||||
Business acquisition shares issued | shares | 24.8 | ||||
Gain on bargain purchase business combination | £ 3.7 |
Group Information - Summary of
Group Information - Summary of Information About Subsidiaries of the Group (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Mereo BioPharma 1 Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Name | Mereo BioPharma 1 Limited | |
Principal activities | Pharmaceutical R&D | |
Country of incorporation | UK | |
% equity interest | 100.00% | 100.00% |
Mereo BioPharma 2 Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Name | Mereo BioPharma 2 Limited | |
Principal activities | Pharmaceutical R&D | |
Country of incorporation | UK | |
% equity interest | 100.00% | 100.00% |
Mereo BioPharma 3 Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Name | Mereo BioPharma 3 Limited | |
Principal activities | Pharmaceutical R&D | |
Country of incorporation | UK | |
% equity interest | 100.00% | 100.00% |
Mereo BioPharma 4 Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Name | Mereo BioPharma 4 Limited | |
Principal activities | Pharmaceutical R&D | |
Country of incorporation | UK | |
% equity interest | 100.00% | 100.00% |
Mereo BioPharma Ireland Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Name | Mereo BioPharma Ireland Limited | |
Principal activities | Pharmaceutical R&D | |
Country of incorporation | Ireland | |
% equity interest | 100.00% | 100.00% |
Mereo BioPharma 5 Inc [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name | Mereo BioPharma 5, Inc. | |
Principal activities | Pharmaceutical R&D | |
Country of incorporation | U.S. | |
% equity interest | 100.00% | 100.00% |
Navi Subsidiary Inc [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name | Navi Subsidiary, Inc. | |
Principal activities | Pharmaceutical R&D | |
Country of incorporation | U.S. | |
% equity interest | 100.00% | 100.00% |
Mereo US Holdings Inc [member] | ||
Disclosure of subsidiaries [line items] | ||
Name | Mereo US Holdings, Inc. | |
Principal activities | Holding company | |
Country of incorporation | U.S. | |
% equity interest | 100.00% | 100.00% |
Mereo BioPharma Group plc Employee Benefit Trust [member] | ||
Disclosure of subsidiaries [line items] | ||
Name | Mereo BioPharma Group plc Employee Benefit Trust | |
Principal activities | Employee share scheme | |
Country of incorporation | Jersey |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) £ in Millions, $ in Millions | Jan. 25, 2021GBP (£) | Dec. 31, 2021GBP (£) | Dec. 31, 2021USD ($) |
Disclosure Of Revenue From Contracts With Customers [Line Items] | |||
Upfront Payment Received | £ 36.5 | £ 50 | |
Milestone payment for regulatory and commercial achievements | $ | $ 302 | ||
Ultragenyx collaboration agreement [Member] | |||
Disclosure Of Revenue From Contracts With Customers [Line Items] | |||
Upfront Payment Received | 36.5 | 50 | |
Milestone payment to ultragenyx collaboration agreement deductions costs | 2.4 | ||
Milestone payment to ultragenyx collaboraation agreement deductions costs recognised | 1.1 | ||
Milestone payment to ultragenyx collaboration agreement deductions costs yet to be recogised | 1.3 | ||
Ultragenyx collaboration agreement [Member] | Novartis [member] | |||
Disclosure Of Revenue From Contracts With Customers [Line Items] | |||
Milestone payment for regulatory and commercial achievements | £ 7.2 | $ 10 |
Profit_(loss) before tax - Summ
Profit/(loss) before tax - Summary of information about Profit Before Tax (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Detailed Information About Profit Before Tax [Abstract] | |||
Fees payable to the Company's Auditor for the audit of the consolidated accounts | £ 358 | £ 449 | £ 514 |
Fees payable to the Company's Auditor for other services: | |||
Audit of subsidiary accounts | 46 | 49 | 45 |
Audit-related assurance services | 57 | 318 | 311 |
Gain on modification of lease | 0 | (957) | 0 |
Income from sub-lease | 0 | (646) | (855) |
Depreciation of right-of-use assets | 570 | 1,531 | 1,505 |
Depreciation (excluding right-of-use assets) | £ 72 | £ 68 | £ 52 |
Employees- Summary of Average M
Employees- Summary of Average Monthly Persons Employed By Group (Detail) - Number | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
By activity | |||
Average number of employees | 45 | 39 | 46 |
Administrative [member] | |||
By activity | |||
Average number of employees | 26 | 22 | 28 |
Research and development [member] | |||
By activity | |||
Average number of employees | 19 | 17 | 18 |
Employees - Summary of Total co
Employees - Summary of Total compensation cost for persons Employed by the Group (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of employee [line items] | |||
Share-based payment expenses | £ 3,302 | £ 1,558 | £ 1,636 |
Total | 12,183 | 10,669 | 8,007 |
Research and development expenses [member] | |||
Disclosure of employee [line items] | |||
Salaries | 4,126 | 3,046 | 2,824 |
Social security costs | 402 | 397 | 110 |
Pension contributions | 73 | 66 | 62 |
Share-based payment expenses | 1,210 | 446 | 152 |
Administrative expenses [member] | |||
Disclosure of employee [line items] | |||
Salaries | 3,763 | 4,832 | 3,384 |
Social security costs | 418 | 681 | (124) |
Pension contributions | 99 | 89 | 114 |
Share-based payment expenses | £ 2,092 | £ 1,112 | £ 1,485 |
Employee - Summary of Compensat
Employee - Summary of Compensation Cost For Directors (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of employee [line items] | |||
Pension contributions | £ 173 | £ 144 | £ 64 |
Total | 6,750 | 5,498 | 4,704 |
Directors [member] | |||
Disclosure of employee [line items] | |||
Salaries and fees | 810 | 1,114 | 1,106 |
Benefits in kind | 9 | 14 | 17 |
Pension contributions | 58 | 61 | 25 |
Bonus | 239 | 538 | 294 |
Total | £ 1,116 | £ 1,727 | £ 1,442 |
Other income_expenses and adj_3
Other income/expenses and adjustments - Summary of Finance Income (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Other Income Expenses And Adjustment [Line Items] | |||
Bank interest earned | £ 1 | £ 5 | £ 42 |
Interest earned on short-term investments | 141 | ||
Gain on short-term investments | 39 | 194 | |
Total | £ 1 | £ 44 | £ 377 |
Other income _ expenses and adj
Other income / expenses and adjustments - Summary of Finance Charge (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Other Income Expenses And Adjustment [Line Items] | |||
Interest on convertible loan notes | £ (3,549) | £ (2,241) | £ (20) |
Interest on bank loan | (2,900) | (1,739) | |
Interest on lease liabilities | (227) | (1,085) | (1,314) |
Accreted interest on bank loan | (1,523) | ||
Modification gain on bank loan | 456 | ||
Discounting of provision for deferred cash consideration | (225) | (157) | (221) |
Other | (21) | (10) | |
Total | £ (4,022) | £ (6,383) | £ (4,371) |
Other income_expenses and adj_4
Other income/expenses and adjustments - Summary of Changes In The Fair Value Of Financial Instruments (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Changes in the fair value of financial instruments [Line Items] | |||
Gain (Loss) on change in fair value of warrants | £ 40,039 | £ (109,849) | £ 875 |
Private placement [Member] | |||
Disclosure of Changes in the fair value of financial instruments [Line Items] | |||
Gain (Loss) on change in fair value of warrants | 39,535 | (45,977) | |
Bank Loan [member] | |||
Disclosure of Changes in the fair value of financial instruments [Line Items] | |||
Gain (Loss) on change in fair value of warrants | £ 504 | (714) | £ 875 |
Embedded Derivative [Member] | |||
Disclosure of Changes in the fair value of financial instruments [Line Items] | |||
Gain (Loss) on change in fair value of warrants | £ (63,158) |
Taxation - Summary of Income Ta
Taxation - Summary of Income Tax Credit (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |||
Tax charge | £ (1,516) | ||
UK corporation tax R&D credit | £ 2,822 | £ 5,149 | |
Other tax income | 1,125 | ||
Tax credit for the year | £ (1,516) | £ 2,822 | £ 6,274 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | May 24, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of income tax credit [line items] | ||||
Description of accumulated tax losses | A deferred tax asset on losses has been recognized up to the level of the deferred tax liability, resulting in a net deferred tax liability of £nil. | |||
Deferred tax liability | £ 0 | £ 0 | ||
Other taxes recoverable | 809 | 809 | £ 804 | |
Uncertain tax position off balance sheet | £ 2,600 | £ 2,600 | ||
Uncertain tax position off balance sheet | % | 20.00% | 20.00% | ||
Indefinitely Expired [Member] | ||||
Disclosure of income tax credit [line items] | ||||
Tax Losses carry forward | £ 59,400 | |||
U.K. Tax Authority [Member] | ||||
Disclosure of income tax credit [line items] | ||||
Standard rate of corporation tax applied to reported loss | 19.00% | 19.00% | ||
Rate at which deferred tax assets and liabilities would be recognized | 25.00% | |||
Tax Losses carry forward | £ 122,600 | |||
U.K. Tax Authority [Member] | Top of range [member] | ||||
Disclosure of income tax credit [line items] | ||||
Description of corporate tax reduction | 25 | |||
U.K. Tax Authority [Member] | Bottom of range [member] | ||||
Disclosure of income tax credit [line items] | ||||
Description of corporate tax reduction | 19 | |||
U.S. Tax Authority [Member] | ||||
Disclosure of income tax credit [line items] | ||||
Rate at which deferred tax assets and liabilities would be recognized | 21.00% | |||
Tax Losses carry forward | 65,600 | |||
U.S. Tax Authority [Member] | Expire In 2023 [Member] | ||||
Disclosure of income tax credit [line items] | ||||
Tax Losses carry forward | £ 6,200 | |||
Expiration date | 2022 | |||
U.S. Tax Authority [Member] | Expire In 2028 [Member] | ||||
Disclosure of income tax credit [line items] | ||||
Tax Losses carry forward | £ 3,500 | |||
Expiration date | 2027 |
Taxation - Summary of Reconcili
Taxation - Summary of Reconciliation to the Earnings Loss Per Income Statement (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |||
Profit/(loss) on ordinary activities before income tax | £ 14,241 | £ (166,450) | £ (41,118) |
Tax on profit at standard U.K. rate of 19% | (2,706) | 31,626 | 7,812 |
Expenses not deductible for income tax purposes (permanent differences) | (708) | (13,270) | (317) |
Income not taxable | 78 | 4 | |
Temporary timing differences | (65) | (343) | |
R&D relief uplift | 1,435 | 1,214 | 2,540 |
Losses (unrecognized) | (345) | (14,479) | (4,380) |
Deferred income from MBG loan guarantee costs | (54) | ||
Foreign tax | 505 | 184 | |
Differences in overseas tax rates | 261 | 340 | |
Derecognition of deferred tax | 286 | (2,686) | |
Gain on bargain purchase | 699 | ||
Other | 4 | (32) | (23) |
Tax credit for the year | £ (1,516) | £ 2,822 | £ 6,274 |
Taxation - Summary of Reconci_2
Taxation - Summary of Reconciliation to the Earnings Loss Per Income Statement (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.K. Tax Authority [Member] | |||
Disclosure Of Income Tax Credit [line items] | |||
Statutory income tax rate | 19.00% | 19.00% | 19.00% |
Taxation - Summary of Deferred
Taxation - Summary of Deferred Tax (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax asset (unrecognised) | £ 55,551 | £ 48,032 | £ 31,028 |
Losses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax asset (unrecognised) | 44,683 | 37,021 | 19,443 |
Loan relationships [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax asset (unrecognised) | 73 | 421 | |
U.S. tax credits [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax asset (unrecognised) | 10,557 | 9,880 | 10,032 |
Accruals [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax asset (unrecognised) | 947 | ||
Fixed assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax asset (unrecognised) | 414 | 400 | |
Share options [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax asset (unrecognised) | 151 | 55 | |
Other U.S. deferred tax [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax asset (unrecognised) | 31 | 86 | |
Other [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax asset (unrecognised) | 137 | 202 | |
Temporary differences [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax asset (unrecognised) | £ 56 | £ 18 | £ 4 |
Taxation - Summary of analysis
Taxation - Summary of analysis of recognized deferred tax (Detail) £ in Thousands | 12 Months Ended |
Dec. 31, 2021GBP (£) | |
Disclosure Of Analysis Of Recognized Deferred Tax [Line Items] | |
Deferred tax asset/(liabilities) | £ (48,032) |
Deferred tax asset/(liabilities) | (55,551) |
Intangible Asset and Right of Use Asset [member] | |
Disclosure Of Analysis Of Recognized Deferred Tax [Line Items] | |
Deferred tax asset/(liabilities) | (96) |
Recognized in income | 76 |
Deferred tax asset/(liabilities) | (20) |
Net operating losses and lease liability [member] | |
Disclosure Of Analysis Of Recognized Deferred Tax [Line Items] | |
Deferred tax asset/(liabilities) | 96 |
Recognized in income | (76) |
Deferred tax asset/(liabilities) | £ 20 |
Earnings per share-Summary of e
Earnings per share-Summary of earning per share (Details) - GBP (£) £ / shares in Units, £ in Thousands | Jun. 21, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Earnings per share [line items] | ||||
Profit/(loss) attributable to equity holders of the parent | £ 12,725 | £ (163,628) | £ (34,844) | |
Weighted average number of ordinary shares | 527,818,648 | 338,953,141 | 89,424,476 | |
Profit/(loss) per share – basic (£) | £ 0.02 | £ (0.48) | £ (0.39) | |
Effect of dilutive ordinary shares | £ (38,523) | |||
Numerator – Diluted earnings per share | £ (25,798) | £ (163,628) | £ (34,844) | |
Number of ordinary shares used for basic earnings per share | 527,818,648 | 338,953,141 | 89,424,476 | |
Weighted average effect of dilutive ordinary shares | 1,071,042 | 27,457,163 | ||
Weighted average number of diluted ordinary shares outstanding | 555,275,811 | 338,953,141 | 89,424,476 | |
Loss per share – diluted (£) | £ (0.05) | £ (0.48) | £ (0.39) |
Property, plant and equipment -
Property, plant and equipment - Additional information (Detail) - GBP (£) £ in Thousands | Aug. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Modification of accounting standard transaction costs | £ 2,500 | |||
Lease payments | £ 692 | £ 2,086 | £ 2,212 | |
IFRS 16 | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Reduction in Right of Use Assets | 8,700 | |||
Reduction in Lease Liability | 9,500 | |||
Gain on Modification of Lease | £ 700 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of IFRS 16 Lease Explanatory (Detail) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | £ 1,573 | £ 11,558 |
Ending balance | 2,530 | 1,573 |
Cost or valuation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 3,384 | 13,252 |
Additions | 1,473 | 16 |
Lease modification | 163 | (10,071) |
Disposals | (875) | |
Currency translation effects | (37) | 187 |
Ending balance | 4,108 | 3,384 |
Depreciation/Amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1,811) | (1,694) |
Lease modification | 1,482 | |
Disposals | 874 | |
Depreciation for the year | (642) | (1,599) |
Ending balance | (1,578) | (1,811) |
Leasehold improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 79 | 95 |
Ending balance | 433 | 79 |
Leasehold improvements [member] | Cost or valuation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 164 | 164 |
Additions | 393 | |
Ending balance | 557 | 164 |
Leasehold improvements [member] | Depreciation/Amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (85) | (69) |
Depreciation for the year | (39) | (16) |
Ending balance | (124) | (85) |
Office equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 6 | 41 |
Ending balance | 104 | 6 |
Office equipment [member] | Cost or valuation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 71 | 71 |
Additions | 109 | |
Disposals | (7) | |
Ending balance | 173 | 71 |
Office equipment [member] | Depreciation/Amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (65) | (30) |
Disposals | 7 | |
Depreciation for the year | (11) | (35) |
Ending balance | (69) | (65) |
IT equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 25 | 26 |
Ending balance | 51 | 25 |
IT equipment [member] | Cost or valuation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 132 | 116 |
Additions | 48 | 16 |
Ending balance | 180 | 132 |
IT equipment [member] | Depreciation/Amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (107) | (90) |
Depreciation for the year | (22) | (17) |
Ending balance | (129) | (107) |
Right-of-use asset (building) [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,318 | 10,881 |
Ending balance | 1,878 | 1,318 |
Right-of-use asset (building) [member] | Cost or valuation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,848 | 11,877 |
Additions | 923 | |
Lease modification | 133 | (10,220) |
Currency translation effects | (1) | 191 |
Ending balance | 2,903 | 1,848 |
Right-of-use asset (building) [member] | Depreciation/Amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (531) | (996) |
Lease modification | 1,482 | |
Disposals | 0 | |
Depreciation for the year | (494) | (1,017) |
Ending balance | (1,025) | (531) |
Right-of-use asset (equipment) [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 146 | 515 |
Ending balance | 64 | 146 |
Right-of-use asset (equipment) [member] | Cost or valuation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,169 | 1,024 |
Lease modification | 30 | 149 |
Disposals | (868) | |
Currency translation effects | (36) | (4) |
Ending balance | 295 | 1,169 |
Right-of-use asset (equipment) [member] | Depreciation/Amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1,023) | (509) |
Disposals | 868 | |
Depreciation for the year | (76) | (514) |
Ending balance | £ (231) | £ (1,023) |
Property, plant and equipment_3
Property, plant and equipment - Summary of Maturity of Lease Liabilities (Detail) £ in Thousands | Dec. 31, 2021GBP (£) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Maturity of Lease liabilities | £ 2,376 |
Within 1 year [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Maturity of Lease liabilities | 622 |
Between 1 and 3 years [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Maturity of Lease liabilities | 972 |
Between 3 and 5 years [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Maturity of Lease liabilities | £ 782 |
Intangible Assets - Summary of
Intangible Assets - Summary of Detailed Information about Intangible Assets (Detail) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | £ 31,648 | £ 44,456 |
Ending balance | 24,564 | 31,648 |
Cost or valuation [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 33,005 | 45,527 |
Disposals | (13,386) | |
Currency translation effects | 864 | |
Ending balance | 33,005 | 33,005 |
Depreciation/Amortization and impairment [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | (1,357) | (1,071) |
Revision to estimated value | 2,373 | (286) |
Out-license of intangible asset | (9,457) | |
Ending balance | £ (8,441) | £ (1,357) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) £ in Thousands, $ in Millions | Jan. 25, 2021GBP (£) | Apr. 23, 2019GBP (£) | Oct. 28, 2017GBP (£) | Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2020USD ($) | Dec. 31, 2019GBP (£) |
Disclosure of detailed information about intangible assets [line items] | |||||||
Amortisation charge recognised on intangible assets | £ 0 | £ 0 | |||||
Deferred equity consideration | 3,302 | 1,558 | |||||
Upfront Payment Received | £ 36,500 | 50,000 | |||||
Loss on disposal of intangible assets | 10,900 | ||||||
Receipt of future milestones and royalties | 254,000 | ||||||
Intangible assets other than goodwill | £ 9,500 | 24,564 | 31,648 | £ 44,456 | |||
Global Licensing Agreement [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Upfront Payment Received | 3,100 | $ 4 | |||||
OncoMed [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Acquisition of Intangible Assets Other Than Goodwill | £ 12,700 | ||||||
MPH-966 [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Deferred equity consideration | £ 7,200 | ||||||
Present value of provision for deferred cash consideration | 2,400 | £ 300 | |||||
Other intangible assets [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Revision in the value of any other intangible assets | £ 0 |
Impairment Testing of Acquire_3
Impairment Testing of Acquired Development Programs Not Yet Available for Use - Summary of Carrying Amount of Acquired Development Programs (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about intangible assets [line items] | ||
Acquired development programs | £ 24,564 | £ 31,648 |
BPS-804 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Acquired development programs | 2,159 | 11,616 |
MPH-966 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Acquired development programs | 8,208 | 5,835 |
BGS-649 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Acquired development programs | 9,886 | 9,886 |
BCT-197 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Acquired development programs | £ 4,311 | £ 4,311 |
Impairment Testing of Acquire_4
Impairment Testing of Acquired Development Programs Not Yet Available for Use - Additional Information (Detail) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of quantitative information about right-of-use assets [abstract] | ||
Impairment of the acquired products' rights | £ 0 | |
Cash flow projections - Industry-standard asset life | 20 years | |
Discount rates | 12.00% | 12.00% |
Other Receivables - Summary of
Other Receivables - Summary of Other Receivables (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of other receivables [abstract] | ||
Rent deposit | £ 408 | £ 407 |
VAT recoverable | 387 | 370 |
Other | 624 | 239 |
Total | £ 1,419 | £ 1,016 |
Cash and Short-term Deposits -
Cash and Short-term Deposits - Summary of Cash and Short-term Deposits (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents [abstract] | ||||
Cash | £ 93,727 | £ 22,922 | ||
Short-term deposits | 569 | 547 | ||
Total | £ 94,296 | £ 23,469 | £ 16,347 | £ 25,042 |
Trade and Other Payables - Summ
Trade and Other Payables - Summary of Trade and Other Payables (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Trade and other payables [abstract] | ||
Trade payables | £ 2,285 | £ 3,165 |
Social security and other taxes | 190 | 146 |
Other payables | 24 | 22 |
Trade and other current payables | £ 2,499 | £ 3,333 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure provisions [line items] | |||
Provisions | £ 4,123 | £ 1,634 | |
Current | 2,803 | 418 | |
Non-current | 1,320 | 1,216 | |
Social security contributions on share options [member] | |||
Disclosure provisions [line items] | |||
Provisions | 109 | £ 104 | |
Provision for deferred cash consideration [member] | |||
Disclosure provisions [line items] | |||
Provisions | £ 4,123 | £ 1,525 |
Provisions - Summary of Social
Provisions - Summary of Social Security Contributions on Share Options (Detail) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [line items] | ||
Beginning balance | £ 1,634 | |
Ending balance | 4,123 | £ 1,634 |
Social security contributions on share options [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance | 109 | 104 |
Arising/(released) during the year, net | (109) | 5 |
Ending balance | 109 | |
Deferred cash consideration [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance | 1,525 | 1,654 |
Increase in provision due to the unwinding of the time value of money | 225 | 157 |
Increase in provision due to a change in estimates relating to timelines and probabilities of contractual milestones being achieved | 2,373 | (286) |
Ending balance | £ 4,123 | £ 1,525 |
Private Placement - Additional
Private Placement - Additional Information (Detail) - GBP (£) £ / shares in Units, £ in Millions | Jun. 03, 2020 | Jun. 21, 2019 | Dec. 31, 2021 | Feb. 10, 2020 |
Statement [line items] | ||||
Private Placement Offerings | £ 56 | |||
Common stock shares issued | 89,144,630 | |||
Par value per share | £ 0.003 | |||
Shares issued price per share | £ 0.174 | |||
Proceeds from Issuance of Convertible Notes | £ 40.5 | |||
Borrowing interest rate | 6.00% | |||
Conversion of loan notes into ordinary shares amount | £ 2.4 | £ 40.5 | ||
Convertible loan amount | £ 18.9 | |||
Percentage Number Of Shares Issuable | 50.00% | |||
Exercise price per warrants | £ 0.348 | |||
Debt maturity | June 2023 | |||
Loan Notes [Member] | ||||
Statement [line items] | ||||
Common stock shares issued | 40,397,976 | |||
Par value per share | £ 0.174 | |||
Notional amount | £ 12.4 | |||
Novartis [member] | ||||
Statement [line items] | ||||
Borrowing interest rate | 6.00% | |||
Conversion of loan notes into ordinary shares amount | £ 21.8 | |||
Number of converted loans converted to ordinary shares | 125,061,475 | |||
Notional amount | £ 3.8 | |||
Warrants [Member] | ||||
Statement [line items] | ||||
Common stock shares issued | 161,048,366 | |||
Warrants issued | 161,048,366 | |||
Fair value of the warrants | £ 4.1 | |||
Loans And Notes | ||||
Statement [line items] | ||||
Notional amount | 38.6 | |||
Debt Host Instrument | ||||
Statement [line items] | ||||
Notional amount | 26.7 | |||
Embedded Derivative | ||||
Statement [line items] | ||||
Notional amount | £ 11.9 | |||
Tranche 1 Notes [Member] | ||||
Statement [line items] | ||||
Proceeds from Issuance of Convertible Notes | £ 15.5 |
Warrant Liability - Summary of
Warrant Liability - Summary of Warrant Liability (Detail) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Warrant Liability [Abstract] | ||
Beginning balance | £ 50,775 | £ 131 |
Issued during the year | 4,080 | |
Settled during the year | (2,400) | (127) |
Fair value changes during the year | (40,039) | 46,691 |
Ending balance | £ 8,336 | £ 50,775 |
Warrant Liability - Additional
Warrant Liability - Additional Information (Detail) £ / shares in Units, £ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021GBP (£)£ / Warrant£ / sharesshares | Dec. 31, 2020GBP (£)£ / sharesshares | Dec. 31, 2021$ / shares | Dec. 31, 2020$ / shares | Jun. 30, 2020£ / sharesshares | Dec. 31, 2019GBP (£) | |
Disclosure of classes of share capital [line items] | ||||||
Percentage of ordinary share capital | 25.00% | 48.00% | ||||
Warrant liability | £ | £ 8,336 | £ 50,775 | £ 131 | |||
Exercise price per warrants | £ / shares | £ 0.348 | |||||
fair value of the warrant liability | £ | £ 8,000 | £ 49,900 | ||||
Number of warrants exercised during period | 14,954,491 | |||||
Private placement [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Warrants issued | 161,048,366 | |||||
Fair Value Adjustments Of Warrants | £ | £ 39,500 | |||||
Exercise price per warrants | £ / shares | £ 0.348 | |||||
Number of warrants exercised during period | 15,414,626 | 690,205 | ||||
Bank loan [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Warrant liability | £ | £ 300 | £ 800 | ||||
Bank loan [member] | Ordinary shares [member] | Warrants Subscribed [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Exercise price per warrants | £ / shares | £ 2.95 | £ 2.95 | ||||
Class of warrant number of securities called by warrants | 1,243,908 | 1,243,908 | ||||
Bank loan [member] | Ordinary shares [member] | Two Thousand And Twenty Warrants [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Exercise price per warrants | $ / shares | $ 0.4144 | $ 0.4144 | ||||
Class of warrant number of securities called by warrants | 1,243,908 | 1,243,908 | ||||
Warrant [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of warrants outstanding | 147,431,351 | 162,845,977 | ||||
Number of warrants exercised | £ / Warrant | 0 |
Warrant Liability - Summary o_2
Warrant Liability - Summary of Weighted Average Inputs to the Models Used for the Fair Value of Warrants Granted (Detail) | Jun. 30, 2020 | Jun. 03, 2020 | Dec. 31, 2021$ / shares | Dec. 31, 2020£ / shares |
Disclosure of classes of share capital [line items] | ||||
Expected volatility | 61.00% | 61.00% | 0.00% | |
Risk-free interest rate | 0.19% | 0.27% | 0.00% | |
Warrant liability [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Expected volatility | 75.00% | |||
Risk-free interest rate | 0.90% | |||
Expected life of warrants (years) | 1 year 6 months | 3 years | ||
Market price of ADS | (per share) | $ 1.60 | £ 3.58 | ||
Model used | Black-Scholes | Black-Scholes | ||
Bottom of range [member] | Warrant liability [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Expected volatility | 84.00% | |||
Risk-free interest rate | 0.05% | |||
Top of range [member] | Warrant liability [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Expected volatility | 85.00% | |||
Risk-free interest rate | 0.25% |
Convertible loan notes - Summar
Convertible loan notes - Summary of Interest-bearing Loans and Borrowings (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [abstract] | ||
Novartis Loan Note | £ 3,771 | £ 3,196 |
Loan Notes – private placement | 10,613 | 12,946 |
Total | 14,384 | 16,142 |
Current | 0 | |
Non-current | £ 14,384 | £ 16,142 |
Convertible loan notes - Additi
Convertible loan notes - Additional Information (Detail) - GBP (£) £ / shares in Units, £ in Thousands | Jun. 03, 2020 | Feb. 10, 2020 | Dec. 31, 2021 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowing interest rate | 6.00% | |||
Accreted interest on bank loan | £ 1,523 | |||
Derecogniton of the embedded derivative | £ 41,600 | |||
Proceeds from Issuance of Convertible Notes | £ 40,500 | |||
Fair value of the liability component net of transaction costs | £ 24,400 | |||
Embedded derivative loan notes outstanding | 33,500 | |||
Embedded derivative | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Notes issued value | 11,900 | |||
Derivative financial liabilities | 63,200 | |||
Notional amount | £ 11,900 | |||
Novartis [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Issuance of unsecured convertible loan notes | 21,700,000 | |||
Borrowing interest rate | 6.00% | |||
Number of converted loans converted to ordinary shares | 125,061,475 | |||
Conversion price per share | £ 0.265 | |||
Notes issued value | £ 3,800 | |||
Accreted interest on bank loan | £ 13,300 | |||
Exercise price of warrants | £ 0.265 | |||
Number of securities called by warrants or rights | 1,449,614 | |||
Expiry date of warrants | Feb. 10, 2025 | |||
Notional amount | £ 3,800 |
Convertible loan notes - Summ_2
Convertible loan notes - Summary Of Movements In The Carrying Value Of The Liability Component Of The Loan Notes (Detail) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
DisclosureOfMovementsInTheCarryingValueOfTheLiabilityComponentOfTheLoanNotes [Abstract] | ||
January 1 | £ 12,946 | |
Issued | 0 | £ 24,417 |
Interest charged | 2,974 | 1,803 |
Converted to equity | (5,307) | (13,274) |
December 31 | £ 10,613 | £ 12,946 |
Convertible loan notes - Summ_3
Convertible loan notes - Summary Of Movements In The Carrying Value Of The Embedded Derivative (Detail) £ in Thousands | 12 Months Ended |
Dec. 31, 2020GBP (£) | |
Reconciliation of nominal amount of credit derivative [abstract] | |
At the beginning of the year | £ 0 |
Arising during the year | 11,913 |
Change in fair value | 63,158 |
Reclassified to equity | (75,071) |
At the end of the year | £ 0 |
Convertible loan notes - Summ_4
Convertible loan notes - Summary Of The Inputs Into The Model Used To Fair Value The Embedded Derivative (Detail) | Jun. 30, 2020yr£ / shares | Jun. 03, 2020yr£ / shares | Dec. 31, 2021yr£ / shares |
DisclosureOfTheInputsIntoTheModelUsedToFairValueTheEmbeddedDerivativeAbstract [Abstract] | |||
Expected volatility | 61.00% | 61.00% | 0.00% |
Risk-free interest rate | 0.19% | 0.27% | 0.00% |
Credit spread | 1.86 | 2.01 | 0 |
Expected life of share options | yr | 3 | 3 | 0 |
Market price of ordinary shares | £ / shares | £ 0.46 | £ 0.19 | £ 0 |
Probability of resolutions passing | 100.00% | 90.00% | 0.00% |
Model used | Discounted cash flow/Black-Scholes model | Discounted cash flow/Black-Scholes model |
Issued Capital and Reserves - S
Issued Capital and Reserves - Summary of Detailed Information of Ordinary Share Capital (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of classes of share capital [line items] | |||
Beginning balance | £ (14,971) | £ 40,256 | £ 32,771 |
Issued during the year | 16,937 | ||
Ending balance | 88,002 | (14,971) | 40,256 |
Beginning balance | 161,785 | ||
Ending balance | 247,460 | 161,785 | |
Share premium [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 161,785 | 121,684 | 118,492 |
Issued during the year | 18,715 | ||
Ending balance | 247,460 | 161,785 | 121,684 |
Beginning balance | 161,785 | 121,684 | 118,492 |
Issued for public offering | 85,909 | ||
Ending balance | 247,460 | 161,785 | 121,684 |
Transaction Costs [Member] | Share premium [member] | |||
Disclosure of classes of share capital [line items] | |||
Transaction costs for issued share capital | £ (234) | (1,307) | (761) |
Private Placement [member] | Share premium [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued for public offering | 15,244 | ||
Conversion of Loan Note [member] | Share premium [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued for public offering | 21,386 | £ 3,953 | |
Securities Purchase Agreement [Member] | Aspire Capital One [member] | Share premium [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued for public offering | 2,511 | ||
Securities Purchase Agreement [Member] | Aspire Capital Two [member] | Share premium [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued for public offering | £ 2,267 | ||
Ordinary shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Ordinary shares issued and fully paid, Beginning balance | 338,953,141 | 97,959,622 | 71,240,272 |
Issued | 245,955,098 | ||
Ordinary shares issued and fully paid, Ending balance | 584,908,239 | 338,953,141 | 97,959,622 |
Ordinary shares [member] | OncoMed [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued | 24,783,320 | ||
Ordinary shares [member] | Private Placement [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued | 89,144,630 | ||
Ordinary shares [member] | Conversion of Loan Note [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued | 125,061,475 | 1,936,030 | |
Ordinary shares [member] | Conversion of Warrants [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued | 239,179 | ||
Ordinary shares [member] | Securities Purchase Agreement [Member] | Aspire Capital One [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued | 14,295,520 | ||
Ordinary shares [member] | Securities Purchase Agreement [Member] | Aspire Capital Two [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued | 12,252,715 | ||
Ordinary share capital [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | £ 1,017 | £ 294 | £ 214 |
Issued during the year | 738 | ||
Ending balance | £ 1,755 | 1,017 | 294 |
Ordinary share capital [member] | OncoMed [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued during the year | 74 | ||
Ordinary share capital [member] | Private Placement [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued during the year | 267 | ||
Ordinary share capital [member] | Conversion of Loan Note [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued during the year | 375 | £ 6 | |
Ordinary share capital [member] | Conversion of Warrants [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued during the year | 1 | ||
Ordinary share capital [member] | Securities Purchase Agreement [Member] | Aspire Capital One [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued during the year | 43 | ||
Ordinary share capital [member] | Securities Purchase Agreement [Member] | Aspire Capital Two [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued during the year | £ 37 |
Issued Capital and Reserves - A
Issued Capital and Reserves - Additional Information (Detail) - GBP (£) £ / shares in Units, £ in Thousands | May 04, 2021 | Feb. 12, 2021 | Dec. 23, 2020 | Jun. 30, 2020 | Jun. 04, 2020 | Jun. 03, 2020 | Feb. 20, 2020 | Feb. 11, 2020 | Jun. 21, 2019 | Apr. 23, 2019 | Jan. 01, 2019 | Mar. 21, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of classes of share capital [line items] | ||||||||||||||||
Ordinary shares issued and allotted | 89,144,630 | |||||||||||||||
Nominal value | £ 0.003 | |||||||||||||||
Ordinary shares price per share | £ 0.174 | £ 0.19 | £ 0.08 | |||||||||||||
Cash consideration | £ 1,500 | £ 1,090 | ||||||||||||||
Conversion of loan notes into ordinary shares amount | £ 2,400 | £ 40,500 | ||||||||||||||
Conversion of loan notes into ordinary shares | 1,071,042 | 27,457,163 | ||||||||||||||
Share conversion price per share | £ 2.21 | |||||||||||||||
Maximum shares to be issued | 864,988 | |||||||||||||||
Equity component (consideration received for the warrants) | £ 100 | 100 | £ 100 | |||||||||||||
Fair value of Acquisition for Ordinary shares | 1,090 | |||||||||||||||
Nominal value of issued capital | 1,755 | 1,017 | ||||||||||||||
Gain loss on extnguishment of financial liability | £ 200 | |||||||||||||||
Number of warrants exercised during period | 14,954,491 | |||||||||||||||
Number of ADS equivalents to warrants issued during period | 2,990,898 | |||||||||||||||
Exercise price per warrants | £ 0.348 | |||||||||||||||
Upfront Consideration | £ 1,500 | £ 1,090 | ||||||||||||||
Noncash Warrant Exercises [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of warrants exercised during period | 460,135 | |||||||||||||||
Exercise price per warrants | £ 0.348 | |||||||||||||||
Other Reserve [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Issued | 89,144,630 | |||||||||||||||
Conversion Of Warrants [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Exercise price per warrants | £ 0.348 | |||||||||||||||
Directors [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Reduction in share premium | £ 7,000 | |||||||||||||||
Novartis [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Conversion of loan notes into ordinary shares amount | £ 21,800 | £ 1,080 | ||||||||||||||
Number of converted loans converted to ordinary shares | 125,061,475 | |||||||||||||||
Amount recognised on conversion and carrying value of the financial liability extinguished | £ 33,500 | |||||||||||||||
Aspire Capital Fund LLC [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Ordinary shares price per share | £ 0.20 | |||||||||||||||
Cash consideration | £ 2,300 | |||||||||||||||
Number of converted loans converted to ordinary shares | 2,862,595 | |||||||||||||||
Issued | 572,519 | |||||||||||||||
Upfront Consideration | £ 2,300 | |||||||||||||||
Ordinary shares [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Ordinary shares issued and allotted | 2,100,840 | 198,375,000 | 125,061,475 | 89,144,630 | 12,252,715 | 11,432,925 | 24,783,320 | 40,397,976 | ||||||||
Nominal value | £ 0.003 | £ 0.003 | £ 0.003 | £ 0.003 | ||||||||||||
Ordinary shares price per share | £ 0.517 | £ 0.395 | £ 0.174 | £ 0.174 | £ 1.65 | £ 0.174 | ||||||||||
Cash consideration | £ 21,800 | £ 15,500 | £ 2,300 | |||||||||||||
Reduction in share premium | £ 2,100 | |||||||||||||||
Shares issued as fully paid up | 584,908,239 | 338,953,141 | 97,959,622 | 71,240,272 | ||||||||||||
Fair value of Acquisition for Ordinary shares | 13,400 | |||||||||||||||
Proceeds from issue of ordinary shares | £ 78,400 | 13,400 | £ 15,500 | |||||||||||||
Discount On Issue Of Shares | 2,100 | |||||||||||||||
Issued | 245,955,098 | |||||||||||||||
Transaction costs associated with issue of share capital | £ 200 | £ 200 | ||||||||||||||
Upfront Consideration | £ 21,800 | £ 15,500 | £ 2,300 | |||||||||||||
Ordinary shares [member] | OncoMed [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Fair value of Acquisition for Ordinary shares | 40,900 | |||||||||||||||
Issued | 24,783,320 | |||||||||||||||
Ordinary shares [member] | OncoMed [Member] | Issued capital [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Excess Amount Within Other Capital Reserves | £ 40,800 | |||||||||||||||
Ordinary shares [member] | Private placement [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Issued | 89,144,630 | |||||||||||||||
Ordinary shares [member] | Conversion Of Warrants [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Share conversion price per share | £ 0.348 | |||||||||||||||
Number Of Warrants converted | 690,205 | 4,621,147 | ||||||||||||||
Issued | 239,179 | |||||||||||||||
Ordinary shares [member] | Novartis [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Maximum shares to be issued | 864,988 | |||||||||||||||
Ordinary shares to be issued price per share | £ 1.84 | |||||||||||||||
Ordinary shares [member] | Aspire Capital Fund LLC [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Commitement to issue capital | £ 25,000 | |||||||||||||||
Novartis bonus shares [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Conversion of loan notes into ordinary shares amount | £ 1,080 | |||||||||||||||
Maximum shares to be issued | 864,988 | |||||||||||||||
Merger reserve [member] | OncoMed [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Shares issued as fully paid up | 24,783,320 | |||||||||||||||
Merger reserve [member] | OncoMed [Member] | Issued capital [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Nominal value of issued capital | £ 100 | |||||||||||||||
Capital reserve [member] | Equity component of convertible loan [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Gain loss on extnguishment of financial liability | £ 33,100 | |||||||||||||||
ADS [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Ordinary shares issued and allotted | 39,675,000 | |||||||||||||||
Ordinary shares price per share | £ 2.726 | |||||||||||||||
Number of new stock issued | 47,835 | |||||||||||||||
ADS [Member] | Noncash Warrant Exercises [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of warrants exercised during period | 92,027 | |||||||||||||||
ADS [Member] | Other Reserve [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Reduction In Warrant Liability | £ 2,400 | |||||||||||||||
ADS [Member] | Private placement [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number Of Warrants converted | 15,414,626 | |||||||||||||||
ADS [Member] | Conversion Of Warrants [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number Of Warrants converted | 138,041 | (924,229) |
Issued Capital and Reserves -_2
Issued Capital and Reserves - Summary of Other Capital Reserves (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of classes of share capital [line items] | |||
Beginning balance | £ 5,001 | £ 7,000 | |
Shares issued | 16,937 | ||
Share-based payments expense during the year | 3,302 | 1,558 | |
Ending balance | 7,401 | 5,001 | £ 7,000 |
Capital reserve [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 128,374 | 59,147 | 18,593 |
Acquisition of OncoMed (Note 5) | 40,818 | ||
Shares issued | (1,590) | ||
Share-based payments expense during the year | 3,302 | 1,558 | 1,636 |
Share-based payments release for exercise of options | (119) | ||
Equity component of convertible loan instrument | 1,084 | ||
Conversion of the Loan Notes | (1,722) | 33,104 | (310) |
Reclassification of the embedded derivative | 33,481 | ||
Ending balance | 129,835 | 128,374 | 59,147 |
Shares to be issued [member] | Capital reserve [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 1,590 | ||
Shares issued | (1,590) | ||
Share-based payments [member] | Capital reserve [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 19,843 | 18,285 | 16,649 |
Share-based payments expense during the year | 3,302 | 1,558 | 1,636 |
Share-based payments release for exercise of options | (119) | ||
Ending balance | 23,026 | 19,843 | 18,285 |
Equity component of convertible loan [member] | Capital reserve [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 34,565 | 310 | |
Equity component of convertible loan instrument | 1,084 | ||
Conversion of the Loan Notes | (1,722) | (310) | |
Reclassification of the embedded derivative | 33,481 | ||
Ending balance | 32,843 | 34,565 | |
Other Warrents Issued [Member] | Capital reserve [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 44 | 44 | 44 |
Ending balance | 44 | 44 | 44 |
Merger reserve [member] | Capital reserve [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 40,818 | 40,818 | |
Acquisition of OncoMed (Note 5) | 40,818 | ||
Ending balance | 40,818 | 40,818 | £ 40,818 |
Other Reserve [Member] | Capital reserve [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 33,104 | ||
Conversion of the Loan Notes | 33,104 | ||
Ending balance | £ 33,104 | £ 33,104 |
Issued Capital and Reserves -_3
Issued Capital and Reserves - Summary of Accumulated Loss (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of classes of share capital [abstract] | |||
Other reserves | £ 7,401 | £ 5,001 | £ 7,000 |
Accumulated losses | £ (296,968) | £ (309,693) | £ (146,065) |
Changes in Liabilities Arisin_3
Changes in Liabilities Arising from Financing Activities - Summary of Changes in Liabilities Arising from Financing Activities (Detail) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning balance | £ 70,298 | £ 34,599 |
Settled during the year | (7,707) | (23,893) |
Financing cash flows | (692) | 37,020 |
Issuance of warrants | 4,080 | |
Interest expense | 4,003 | 6,226 |
Lease addition | 910 | |
Lease modifications | 163 | (9,547) |
Changes in fair values | (37,666) | 109,720 |
Changes in foreign exchange | (10) | 438 |
Reclassified to equity | (88,345) | |
Ending balance | 29,299 | 70,298 |
Contingent consideration [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning balance | 354 | |
Settled during the year | (354) | |
Ending balance | 0 | |
Lease liability [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning balance | 1,794 | 11,904 |
Financing cash flows | (692) | (2,086) |
Interest expense | 230 | 1,085 |
Lease addition | 910 | |
Lease modifications | 163 | (9,547) |
Changes in foreign exchange | (29) | 438 |
Ending balance | 2,376 | 1,794 |
Bank loan [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning balance | 20,512 | |
Settled during the year | (23,412) | |
Interest expense | 2,900 | |
Ending balance | 0 | |
Novartis notes [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning balance | 3,196 | |
Financing cash flows | 2,758 | |
Interest expense | 575 | 438 |
Ending balance | 3,771 | 3,196 |
Warrant liability [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning balance | 50,775 | 131 |
Settled during the year | (2,400) | (127) |
Issuance of warrants | 4,080 | |
Changes in fair values | (40,039) | 46,691 |
Ending balance | 8,336 | 50,775 |
Deferred cash consideration [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning balance | 1,525 | 1,654 |
Interest expense | 206 | |
Changes in fair values | 2,373 | (129) |
Changes in foreign exchange | 19 | |
Ending balance | 4,123 | 1,525 |
Convertible loan notes –private placement | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning balance | 12,946 | |
Settled during the year | (5,307) | |
Financing cash flows | 36,330 | |
Interest expense | 2,974 | 1,803 |
Changes in fair values | 63,158 | |
Reclassified to equity | (88,345) | |
Ending balance | 10,613 | 12,946 |
other [Member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning balance | 62 | 44 |
Financing cash flows | 18 | |
Interest expense | 18 | |
Ending balance | £ 80 | £ 62 |
Financial and Capital Risk Ma_3
Financial and Capital Risk Management and Fair Value Measurement - Additional Information (Detail) £ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2020GBP (£) | |
Disclosure of detailed information about financial instruments [line items] | |||
Fair value of the contingent consideration liability | £ 0 | £ 0 | |
Percentage of increase decrease in sensitivity analysis affecting input to fair value | 10.00% | 10.00% | |
Milestone payment for regulatory and commercial achievements | $ | $ 302 | ||
Global Licensing Agreement [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Milestone payment for regulatory and commercial achievements | £ 0.4 |
Financial and Capital Risk Ma_4
Financial and Capital Risk Management and Fair Value Measurement - Summary of Changes In Significant Unobservable Inputs Under Valuation Model Used In Level Fair Value Measurement (Detail) £ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2021USD ($) | |
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||||
Percentage of increase decrease in sensitivity analysis affecting input to fair value | 10.00% | 10.00% | ||
Undiscounted contingent liability for future payments | $ | $ 80 | |||
Milestone payment for regulatory and commercial achievements | $ | $ 302 | |||
Weighted average cost of capital [member] | Provision for deferred cash consideration [member] | Discounted cash flow model [member] | ||||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||||
Weighted average cost of capital | 12.00% | 12.00% | 12.00% | |
Percentage of increase decrease in sensitivity analysis affecting input to fair value | 1.00% | 1.00% | 1.00% | |
Increase decrease in sensitivity analysis affecting input to fair value | £ 31,000 | £ 25,000 | ||
Probability of success [member] | Provision for deferred cash consideration [member] | Discounted cash flow model [member] | ||||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||||
Percentage of increase decrease in sensitivity analysis affecting input to fair value | 10.00% | 10.00% | 10.00% | |
Increase decrease in sensitivity analysis affecting input to fair value | £ 500 | £ 400 | ||
Bottom of range [member] | Probability of success [member] | Provision for deferred cash consideration [member] | Discounted cash flow model [member] | ||||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||||
Probability of success | 40.60% | 40.60% | 13.80% | |
Top of range [member] | Probability of success [member] | Provision for deferred cash consideration [member] | Discounted cash flow model [member] | ||||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||||
Probability of success | 81.20% | 81.20% | 95.00% | |
Weighted average [member] | Expected Volatility Member [Member] | Warrants Related To Private Placement [Member] | Black And Scholes Method [member] | ||||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||||
Expected Volatility Percentage | 75.10% | 75.10% | 85.10% | |
Weighted average [member] | Expected Volatility One [Member] | Warrants Related To Private Placement [Member] | Black And Scholes Method [member] | ||||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||||
Expected Volatility Percentage | 67.40% | 67.40% | 93.80% | |
Financial liabilities, at fair value | £ 6,700 | £ 52,900 |
Financial and Capital Risk Ma_5
Financial and Capital Risk Management and Fair Value Measurement - Summary of Maturity Profile of Financial Liabilities Based on Contractual Undiscounted Payments (Detail) £ in Thousands | Dec. 31, 2021GBP (£) |
lease [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Financial liabilities on contractual undiscounted payments | £ 2,838 |
Trade And Other Payables [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Financial liabilities on contractual undiscounted payments | 2,499 |
Accruals [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Financial liabilities on contractual undiscounted payments | 3,826 |
Up to 1 year [member] | lease [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Financial liabilities on contractual undiscounted payments | 781 |
Up to 1 year [member] | Trade And Other Payables [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Financial liabilities on contractual undiscounted payments | 2,499 |
Up to 1 year [member] | Accruals [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Financial liabilities on contractual undiscounted payments | 3,826 |
1-3 years [member] | lease [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Financial liabilities on contractual undiscounted payments | 1,222 |
3-5 years [member] | lease [member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Financial liabilities on contractual undiscounted payments | £ 835 |
Financial and Capital Risk Ma_6
Financial and Capital Risk Management and Fair Value Measurement - Detailed Information About Cash And Cash Equivalents By Currency Type (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Detailed Information about Cash and Cash Equivalents by Currency Type [Line Items] | ||||
Cash and cash equivalents | £ 94,296 | £ 23,469 | £ 16,347 | £ 25,042 |
Pound Sterling [Member] | ||||
Detailed Information about Cash and Cash Equivalents by Currency Type [Line Items] | ||||
Cash and cash equivalents | 92,104 | 17,809 | ||
U.S. dollars [Member] | ||||
Detailed Information about Cash and Cash Equivalents by Currency Type [Line Items] | ||||
Cash and cash equivalents | 2,018 | 5,586 | ||
Swiss Francs [Member] | ||||
Detailed Information about Cash and Cash Equivalents by Currency Type [Line Items] | ||||
Cash and cash equivalents | 9 | 9 | ||
Euro [Member] | ||||
Detailed Information about Cash and Cash Equivalents by Currency Type [Line Items] | ||||
Cash and cash equivalents | £ 165 | £ 65 |
Financial and Capital Risk Ma_7
Financial and Capital Risk Management and Fair Value Measurement - Detailed Information About Gain Loss On Foreign Currency Translaction Recognized In Income Statement (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | |||
Net foreign exchange gain/(loss) | £ (954) | £ (1,821) | £ 483 |
Market Uncertainty [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Net foreign exchange gain/(loss) | 787 | 3,584 | |
U.S. dollars [Member] | Market Uncertainty [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Net foreign exchange gain/(loss) | 920 | 4,088 | |
Swiss Francs [Member] | Market Uncertainty [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Net foreign exchange gain/(loss) | 9 | 9 | |
Euro [Member] | Market Uncertainty [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Net foreign exchange gain/(loss) | £ (142) | £ (513) |
Financial and Capital Risk Ma_8
Financial and Capital Risk Management and Fair Value Measurement - Details the Group's Sensitivity to a 10% Change in the Period-End Rate (Detail) £ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2021GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Statement [line items] | |||||||
Profit before tax | £ 14,241 | £ (166,450) | £ (41,118) | ||||
Currency risk [member] | |||||||
Statement [line items] | |||||||
Profit before tax | 13 | $ (84) | 47 | $ (372) | |||
Equity | £ 13 | £ 47 | $ (84) | $ (372) |
Financial and Capital Risk Ma_9
Financial and Capital Risk Management and Fair Value Measurement - Summary of Fair Value Hierarchy (Detail) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Provision for deferred cash consideration [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Date of valuation | Dec. 31, 2021 | Dec. 31, 2020 |
Financial liabilities at fair value | £ 4,123 | £ 1,525 |
Warrant liability [member] | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Date of valuation | Dec. 31, 2021 | Dec. 31, 2020 |
Financial liabilities at fair value | £ 8,336 | £ 50,775 |
Quoted prices in active markets (Level 1) | Provision for deferred cash consideration [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities at fair value | 0 | 0 |
Quoted prices in active markets (Level 1) | Warrant liability [member] | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities at fair value | 0 | 0 |
Significant observable inputs (Level 2) | Provision for deferred cash consideration [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities at fair value | 0 | 0 |
Significant observable inputs (Level 2) | Warrant liability [member] | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities at fair value | 341 | 845 |
Significant unobservable inputs (Level 3) | Provision for deferred cash consideration [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities at fair value | 4,123 | 1,525 |
Significant unobservable inputs (Level 3) | Warrant liability [member] | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities at fair value | £ 7,995 | £ 49,930 |
Financial and Capital Risk M_10
Financial and Capital Risk Management and Fair Value Measurement - Summary of changes in level 3 of fair value of hierarchy (Detail) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of changes in level 3 of fair value of hierarchy [Line Items] | ||
Beginning balance | £ 1,634 | |
Ending balance | 4,123 | £ 1,634 |
Provision for deferred cash consideration [member] | ||
Summary of changes in level 3 of fair value of hierarchy [Line Items] | ||
Beginning balance | 1,525 | |
Ending balance | 4,123 | 1,525 |
Provision for deferred cash consideration [member] | Level 3 of fair value hierarchy [member] | ||
Summary of changes in level 3 of fair value of hierarchy [Line Items] | ||
Beginning balance | 1,525 | 1,654 |
Issued during the year | 0 | |
Settled during the year | 0 | 0 |
Unwinding of the time value of money recognised as a finance charge | 225 | 157 |
Change in estimate relating to probabilities (revision to intangible asset, see Note 13) | 2,373 | (286) |
Change in fair value | 0 | 0 |
Ending balance | 4,123 | 1,525 |
Provision for contingent consideration [member] | Level 3 of fair value hierarchy [member] | ||
Summary of changes in level 3 of fair value of hierarchy [Line Items] | ||
Beginning balance | 0 | 354 |
Issued during the year | 0 | |
Settled during the year | 0 | (354) |
Unwinding of the time value of money recognised as a finance charge | 0 | 0 |
Change in estimate relating to probabilities (revision to intangible asset, see Note 13) | 0 | 0 |
Change in fair value | 0 | 0 |
Ending balance | 0 | 0 |
Warrant liability [member] | Level 3 of fair value hierarchy [member] | ||
Summary of changes in level 3 of fair value of hierarchy [Line Items] | ||
Beginning balance | 49,930 | 0 |
Issued during the year | 4,080 | |
Settled during the year | (2,400) | (127) |
Unwinding of the time value of money recognised as a finance charge | 0 | 0 |
Change in estimate relating to probabilities (revision to intangible asset, see Note 13) | 0 | 0 |
Change in fair value | (39,535) | 45,977 |
Ending balance | £ 7,995 | £ 49,930 |
Financial And Capital Risk M_11
Financial And Capital Risk Management And Fair Value Measurement - Summary of Financial instruments by category (Detail) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial liabilities | |||
Provisions | £ 4,123 | £ 1,634 | |
Warrant liability | 8,336 | 50,775 | £ 131 |
Accruals | 3,826 | 4,178 | |
Lease liability | 2,376 | ||
Fair value through profit or loss [member] | |||
Financial assets | |||
Cash and short-term deposits | 0 | 0 | |
Other receivables | 0 | 0 | |
Total financial assets | 0 | 0 | |
Financial liabilities | |||
Provisions | 4,123 | 1,634 | |
Convertible loan notes | 0 | 0 | |
Warrant liability | 8,336 | 50,775 | |
Trade and other payables | 0 | 0 | |
Accruals | 0 | 0 | |
Lease liability | 0 | 0 | |
Total financial liabilities | 12,459 | 52,409 | |
Amortized cost [member] | |||
Financial assets | |||
Cash and short-term deposits | 94,296 | 23,469 | |
Other receivables | 1,032 | 646 | |
Total financial assets | 95,328 | 24,919 | |
Financial liabilities | |||
Provisions | 0 | 0 | |
Convertible loan notes | 14,384 | 16,142 | |
Warrant liability | 0 | 0 | |
Trade and other payables | 2,309 | 3,187 | |
Accruals | 3,826 | 4,178 | |
Lease liability | 2,376 | 1,794 | |
Total financial liabilities | £ 22,895 | £ 25,301 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) £ in Millions, $ in Millions | 1 Months Ended | |
Oct. 31, 2017USD ($)shares | Dec. 31, 2021GBP (£) | |
Contract Manufacturing Organizations [Member] | ||
Disclosure of commitments and contingencies [line items] | ||
Outstanding commitments, related party transactions | £ | £ 1.4 | |
Mereo BioPharma 4 Limited [member] | ||
Disclosure of commitments and contingencies [line items] | ||
Payment of ordinary shares | $ 3 | |
Issuance of aggregate ordinary shares | shares | 490,798 | |
Aggregate upfront payment amount | $ 5 | |
Payments of aggregate and issue additional ordinary shares | $ 115.5 |
Share-based Payments - Charge f
Share-based Payments - Charge for Share-based Payments (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based payments | £ 3,302 | £ 1,558 | £ 1,636 |
2019 Equity Incentive Plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based payments | 2,860 | 922 | 635 |
2019 Non-Executive Director Equity Incentive Plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based payments | 499 | 167 | 160 |
2015 Plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based payments | 0 | 3 | 63 |
Mereo BioPharma Group plc Share Option Plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based payments | 68 | 376 | 685 |
Long-term incentive plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based payments | £ (125) | £ 90 | £ 93 |
Share-based Payments - Addition
Share-based Payments - Additional Information (Detail) £ / shares in Units, £ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2018GBP (£) | Dec. 31, 2021£ / sharesshares | Dec. 31, 2019GBP (£) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of shares each ADR represent | 5 | ||||
Number of options granted | 0 | ||||
Number Of Outstanding Share Options | 625,906 | ||||
Number of share options outstanding in share-based payment arrangement | 8,297,694 | 8,923,600 | 8,297,694 | 8,923,600 | |
Number of share options exercisable in share-based payment arrangement | 8,297,694 | 8,923,600 | 8,297,694 | ||
ADS [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Weighted average exercise price of share options granted | $ / shares | $ 2.50 | $ 2.23 | |||
2015 Plan [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Weighted average remaining contractual life for the share options outstanding period | 3 years 7 months 6 days | 4 years 7 months 6 days | |||
2015 Plan [member] | Existing Non-Executive Directors [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting period | 4 years | ||||
2015 Plan [member] | Newly Non-Executive Directors [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting period | 3 years | ||||
2015 Plan [member] | Bottom of range [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Options outstanding exercise price | £ / shares | £ 1.28 | ||||
2015 Plan [member] | Top of range [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Options outstanding exercise price | £ / shares | £ 2.19 | ||||
Mereo BioPharma Group plc Share Option Plan [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Weighted average remaining contractual life for the share options outstanding period | 5 years 7 months 6 days | 6 years 7 months 6 days | |||
Number Of Outstanding Share Options | 87,430 | 112,670 | |||
Number of share options outstanding in share-based payment arrangement | 1,323,965 | 1,411,395 | 1,323,965 | 1,524,065 | |
Number of share options exercisable in share-based payment arrangement | 1,323,965 | 1,210,410 | 1,323,965 | ||
Mereo BioPharma Group plc Share Option Plan [member] | Bottom of range [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Options outstanding exercise price | £ / shares | £ 2.73 | ||||
Mereo BioPharma Group plc Share Option Plan [member] | Top of range [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Options outstanding exercise price | £ / shares | £ 3.22 | ||||
Long-term incentive plan [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of options granted | 0 | ||||
Weighted average remaining contractual life for the share options outstanding period | 6 months | ||||
Percentage of options issued to employees | 75.00% | 75.00% | |||
Percentage of options vested to employees | 25.00% | 25.00% | |||
Number of share options expired in share-based payment arrangement | 482,748 | 427,324 | |||
Number Of Outstanding Share Options | 0 | ||||
Number of share options outstanding in share-based payment arrangement | 0 | 482,748 | 0 | 910,072 | |
Number of share options exercisable in share-based payment arrangement | 0 | 0 | |||
Deferred bonus share plan [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Annual bonus payable in deferred shares | 30.00% | ||||
2019 Equity Incentive Plan [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Contractual term share options | 10 years | ||||
Number of options granted | 2,696,960 | 1,167,836 | |||
Weighted average remaining contractual life for the share options outstanding period | 8 years 8 months 12 days | 8 years 10 months 24 days | |||
Vesting period | 3 years | ||||
Number of share options expired in share-based payment arrangement | 253,277 | 406 | |||
Number Of Outstanding Share Options | 28,521 | 397,607 | |||
Number of share options outstanding in share-based payment arrangement | 3,943,702 | 1,567,873 | 3,943,702 | 798,050 | |
Number of share options exercisable in share-based payment arrangement | 727,698 | 259,829 | 727,698 | ||
Weighted average exercise price of share options granted | $ / shares | $ 2.83 | $ 2 | |||
2019 Equity Incentive Plan [member] | Newly Non-Executive Directors [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting period | 1 year | ||||
2019 Equity Incentive Plan [member] | Bottom of range [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Options outstanding exercise price | $ / shares | $ 5.40 | ||||
2019 Equity Incentive Plan [member] | Top of range [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Options outstanding exercise price | $ / shares | $ 1.76 | ||||
2019 Non-Executive Director Equity Incentive Plan [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of options granted | 296,000 | 77,000 | |||
Weighted average remaining contractual life for the share options outstanding period | 8 years 7 months 6 days | 8 years 10 months 24 days | |||
Number of share options expired in share-based payment arrangement | 23,625 | ||||
Number Of Outstanding Share Options | 4,584 | ||||
Number of share options outstanding in share-based payment arrangement | 421,791 | 149,416 | 421,791 | 77,000 | |
Number of share options exercisable in share-based payment arrangement | 386,623 | 138,412 | 386,623 | ||
Weighted average exercise price of share options granted | $ / shares | $ 2.81 | $ 1.84 | |||
AstraZeneca [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Share issued upon consideration | 1,349,693 | 1,349,693 | |||
Deferred Bonus Plan [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of options granted | 0 | ||||
Weighted average remaining contractual life for the share options outstanding period | 1 month 6 days | 7 months 6 days | |||
Weighted average fair value of options granted | £ | £ 0 | £ 0 | |||
Annual bonus payable in deferred shares | 100.00% | ||||
Number of share options expired in share-based payment arrangement | 62,183 | ||||
Percentage of annual bonus granted to directors | 30.00% | ||||
Number of share options outstanding in share-based payment arrangement | 100,817 | 163,000 | 100,817 | ||
Number of share options exercisable in share-based payment arrangement | 62,170 |
Share-based Payments - Summary
Share-based Payments - Summary of Number and Weighted Average Exercise Prices (WAEP) of, and Movements in, Options (Detail) | 12 Months Ended | |||||
Dec. 31, 2021shares$ / shares | Dec. 31, 2021shares£ / shares$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2020£ / shares$ / shares | Dec. 31, 2021£ / shares | Dec. 31, 2020£ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Outstanding at January 1 | 8,923,600 | 8,923,600 | 8,923,600 | 8,923,600 | ||
Options over ADR Number granted during the year | shares | 0 | 0 | ||||
Options over ADR Number forfeited during the year | (625,906) | (625,906) | ||||
Outstanding at December 31 | 8,297,694 | 8,297,694 | 8,923,600 | 8,923,600 | ||
Options over ADR Number exercisable at December 31 | 8,297,694 | 8,297,694 | 8,923,600 | 8,923,600 | 8,297,694 | 8,923,600 |
WAEP options outstanding at beginning of the year | £ / shares | £ 1.32 | £ 1.32 | ||||
WAEP options forfeited during the year | £ / shares | 1.29 | |||||
WAEP options outstanding at December 31 | £ / shares | £ 1.31 | £ 1.32 | ||||
WAEP options exercisable at December 31 | £ / shares | £ 1.31 | £ 1.32 | ||||
2019 Equity Incentive Plan [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Outstanding at January 1 | 1,567,873 | 1,567,873 | 798,050 | 798,050 | ||
Options over ADR Number granted during the year | 2,696,960 | 2,696,960 | 1,167,836 | 1,167,836 | ||
Options over ADR Number cancelled during the year | (253,277) | (253,277) | (406) | (406) | ||
Options over ADR Number forfeited during the year | (28,521) | (28,521) | (397,607) | (397,607) | ||
Options over ADR Number exercised during the year | (39,333) | (39,333) | ||||
Outstanding at December 31 | 3,943,702 | 3,943,702 | 1,567,873 | 1,567,873 | ||
Options over ADR Number exercisable at December 31 | 727,698 | 727,698 | 259,829 | 259,829 | 727,698 | 259,829 |
WAEP options outstanding at beginning of the year | $ 2.94 | $ 4.29 | ||||
WAEP options granted during the year | 2.83 | 2 | ||||
WAEP options cancelled during the year | 2.66 | 5.40 | ||||
WAEP options forfeited during the year | 5.37 | 2.87 | ||||
WAEP options exercised during the year | 2.11 | |||||
WAEP options outstanding at December 31 | 2.88 | 2.94 | ||||
WAEP options exercisable at December 31 | $ 3.16 | £ 3.16 | $ 4.42 | £ 4.42 | ||
2019 Non-Executive Director Equity Incentive Plan [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Outstanding at January 1 | 149,416 | 149,416 | 77,000 | 77,000 | ||
Options over ADR Number granted during the year | 296,000 | 296,000 | 77,000 | 77,000 | ||
Options over ADR Number cancelled during the year | (23,625) | (23,625) | ||||
Options over ADR Number forfeited during the year | (4,584) | (4,584) | ||||
Outstanding at December 31 | 421,791 | 421,791 | 149,416 | 149,416 | ||
Options over ADR Number exercisable at December 31 | 386,623 | 386,623 | 138,412 | 138,412 | 386,623 | 138,412 |
WAEP options outstanding at beginning of the year | $ 3.06 | $ 4.20 | ||||
WAEP options granted during the year | 2.81 | 1.84 | ||||
WAEP options cancelled during the year | 2.72 | |||||
WAEP options forfeited during the year | 1.84 | |||||
WAEP options outstanding at December 31 | 2.90 | 3.06 | ||||
WAEP options exercisable at December 31 | $ 2.91 | £ 2.91 | $ 3.15 | £ 3.15 | ||
Mereo BioPharma Group plc Share Option Plan [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Outstanding at January 1 | 1,411,395 | 1,411,395 | 1,524,065 | 1,524,065 | ||
Options over ADR Number forfeited during the year | (87,430) | (87,430) | (112,670) | (112,670) | ||
Outstanding at December 31 | 1,323,965 | 1,323,965 | 1,411,395 | 1,411,395 | ||
Options over ADR Number exercisable at December 31 | 1,323,965 | 1,323,965 | 1,210,410 | 1,210,410 | 1,323,965 | 1,210,410 |
WAEP options outstanding at beginning of the year | £ / shares | £ 3.14 | £ 3.07 | ||||
WAEP options forfeited during the year | £ / shares | 3.11 | 3.03 | ||||
WAEP options outstanding at December 31 | £ / shares | £ 3.04 | £ 3.14 | ||||
WAEP options exercisable at December 31 | £ / shares | £ 3.04 | £ 3.01 |
Share-based Payments - Summar_2
Share-based Payments - Summary of Weighted Average Inputs to the Models Used for the Fair Value of Share Options Granted (Detail) - $ / shares | Jun. 30, 2020 | Jun. 03, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of classes of share capital [line items] | ||||
Expected volatility (%) | 61.00% | 61.00% | 0.00% | |
Risk-free interest rate (%) | 0.19% | 0.27% | 0.00% | |
2019 Equity Incentive Plan [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Expected volatility (%) | 97.00% | 67.00% | ||
Risk-free interest rate (%) | 1.15% | 0.59% | ||
Expected life of share options (years) | 10 years | 10 years | ||
Market price of ADS's ($) | $ 2.83 | $ 1.99 | ||
Model used | Black-Scholes | Black-Scholes | ||
2019 Non-Executive Director Equity Incentive Plan [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Expected volatility (%) | 98.00% | 68.00% | ||
Risk-free interest rate (%) | 1.09% | 0.64% | ||
Expected life of share options (years) | 10 years | 10 years | ||
Market price of ADS's ($) | $ 2.81 | $ 1.84 | ||
Model used | Black-Scholes | Black-Scholes |
Share-based Payments - Summar_3
Share-based Payments - Summary of Number and Movements in Long Term Incentive Plan Options (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding at January 1 | 8,923,600 | 8,923,600 |
Outstanding at December 31 | 8,297,694 | 8,923,600 |
Exercisable at December 31 | 8,297,694 | 8,923,600 |
Long-term incentive plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding at January 1 | 482,748 | 910,072 |
Lapsed during the year | (482,748) | (427,324) |
Outstanding at December 31 | 0 | 482,748 |
Exercisable at December 31 | 0 |
Related Party Disclosures - Add
Related Party Disclosures - Additional Information (Detail) - GBP (£) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | ||
Amount paid to trust by the company | £ 0 | £ 0 |
Shares purchased by the EBT | 0 | |
Total number of American Depository Shares used to exercise options by EBT | 7 | |
ADS [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Cash held by employee benefit trust | £ 17,866 | £ 21,762 |
Total number of American Depository Shares used to exercise options by EBT | 216,251 | 247,456 |
ADS [Member] | Share Based Incentive Scheme [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Total number of American Depository Shares used to exercise options by EBT | 31,205 | 0 |
Related Party Disclosures - Sum
Related Party Disclosures - Summary Of Compensation of key management personnel of the Group (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term benefits | £ 4,018 | £ 4,479 | £ 3,488 |
Post-employment benefits | 173 | 144 | 64 |
Share-based payment charge | 2,559 | 875 | 1,152 |
Total | £ 6,750 | £ 5,498 | £ 4,704 |
Events after the reporting pe_2
Events after the reporting period - Additional Information (Detail) £ in Millions, $ in Millions | Jan. 25, 2021GBP (£) | Feb. 28, 2022USD ($) | Dec. 31, 2021GBP (£) | Dec. 31, 2021USD ($) |
Statement [line items] | ||||
Upfront Payment Received | £ | £ 36.5 | £ 50 | ||
Milestone payment for regulatory and commercial achievements | $ 302 | |||
Navi License Agreement [Member] | Mile Stone Achievement [Member] | ||||
Statement [line items] | ||||
Upfront Payment Received | $ 2 | |||
Milestone payment for regulatory and commercial achievements | $ 0.9 |