Mereo Biopharma Shares Surge 3.98% on Global Oxygen Therapy Market Expansion

The share price rose to its highest level since the start of this month, with an intraday gain of 3.98% on Nov. 8.

Mereo Biopharma’s stock surge reflects optimism around the global oxygen therapy equipment market, driven by rising demand for respiratory care solutions. Analysts highlight three key factors: the growing prevalence of chronic respiratory diseases, such as COPD and asthma; advancements in critical care and hospital oxygen delivery systems; and technological innovations in portable and AI-enabled devices. The company’s role in developing therapies for respiratory conditions positions it to benefit from these trends, particularly in North America, where the market accounts for 42% of global sales, and the Asia-Pacific region, projected to grow at a 9.27% CAGR. MREO’s focus on home and hospital-based oxygen therapies aligns with expanding patient needs and regulatory shifts toward long-term treatment solutions.

Broader market dynamics underscore MREO’s potential for sustained growth. The oxygen therapy equipment sector is expected to expand at 8% annually through 2032, fueled by an aging population and rising healthcare infrastructure investments. MREO faces competition from firms like Philips and Inogen, but its ability to integrate cutting-edge technologies—such as IoT-enabled monitoring and compact designs—could strengthen its market position. Strategic expansion into high-growth regions, coupled with innovation in critical care applications, positions the stock to capitalize on long-term demand. However, maintaining cost-effectiveness and navigating regulatory hurdles will be critical to sustaining momentum in a competitive landscape.