Spero Therapeutics, Inc. (NASDAQ: SPRO) is engaged as a clinical-stage biopharmaceutical company, which is focused on the research, development and commercialization of novel treatments for drug resistant bacterial infections and rare diseases. Shares of the biopharma company are skyrocketing 191% through early trading on Thursday, September 22, 2022. Over the past three months, Spero Therapeutics has seen average daily volume of 2.71 million shares. However, volume of 171.34 million shares or dollar volume of around $407.79 million, has already exchanged hands through early trading.
Shares of Spero Therapeutics are surging after the company announced that it has entered into an exclusive licensing agreement with GSK (NYSE: GSK). Under the agreement, GSK will have access to Spero’s Tebipenem HBr in order to commercialize the treatment across the world except for Japan and other certain Asian countries. In exchange for the commercialization rights, GSK will pay Spero Therapeutics $66 million upfront, with the ability to obtain additional payments in the future based on achieved milestones and tiered royalties.
In addition to the exclusive licensing agreement, GSK will purchase $9 million worth of common stock in Spero Therapeutics. Specifically, GSK will purchase 7.45 million shares of Spero common stock at a purchase price of $1.20805 and will not exceed 19.99% beneficial ownership.
Tebipenem HBr is currently being developed to be the first oral carbapenem antibiotic for the treatment of complicated urinary tract infections (cUTI), including pyelonephritis. Spero Therapeutics estimates to launch a new Phase 3 clinical trial in 2023, after receiving positive FDA feedback on the clinical trial design. Spero will be responsible for the execution and costs associated with the upcoming Phase 3 trial. GSK will take the lead on execution, additional development costs, Phase 3 regulatory filings, and commercialization activities.
“Spero’s agreement with GSK provides a critical step towards fully realizing the value tebipenem HBr can potentially provide to physicians, payors, and patients,” said Ankit Mahadevia, M.D., Chief Executive Officer of Spero. “We are thrilled to collaborate with GSK on developing tebipenem HBr for patients suffering from cUTI. With their antibiotic expertise and global commercial reach, GSK is ideally positioned to launch tebipenem HBr following regulatory approval as the first oral treatment for cUTI, providing patients with an alternative to in-hospital intravenous (IV) therapy. Tebipenem HBr’s potential as an at-home, oral option can potentially be of significant benefit by reducing hospital resource utilization. In addition, our partnership with GSK strengthens our balance sheet and shareholder base.”
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