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Spero Therapeutics Enters Into a Non-Dilutive Revenue Interest Financing Agreement With HealthCare Royalty Partners® for Up to $125 Million
Investment expected to extend Spero Therapeutics’ cash runway into 2H 2023 CAMBRIDGE, Mass., Sept. 30, 2021 (GLOBE NEWSWIRE) -- Spero Therapeutics, Inc.
About this update from Spero Therapeutics, Inc.
[{"type":"text","content":"Investment expected to extend Spero Therapeutics’ cash runway into 2H 2023\nCAMBRIDGE, Mass., Sept. 30, 2021 (GLOBE NEWSWIRE) -- Spero Therapeutics, Inc. (Nasdaq: SPRO), a multi-asset clinical-stage biopharmaceutical company focused on identifying, developing, and commercializing treatments in high unmet need areas involving multi-drug resistant bacterial infections and rare diseases, today announced that it has entered into a revenue interest financing agreement with HealthCare Royalty Partners® for up to $125 million. Spero intends to use the proceeds from the agreement and existing cash on hand to prepare for the anticipated launch of tebipenem HBr, as well as to support the continued clinical development of SPR720 and SPR206. Under the terms of the agreement, Spero will receive $50 million from HealthCare Royalty Partners® by October 21, 2021. Spero is also entitled to receive an additional $50 million upon the U.S. Food and Drug Administration (FDA) approval of tebipenem HBr (Tebi) for a complicated urinary tract infection (cUTI) indication, and an additional $25 million upon the attainment of a prespecified commercial milestone and mutual agreement between Spero and HealthCare Royalty Partners®. In exchange for the total investment amount received by Spero, HealthCare Royalty Partners® will receive a tiered royalty on applicable revenue generated by tebipenem HBr, SPR720 and SPR206 and other products marketed by Spero until the aggregate amount paid to HealthCare Royalty Partners® is two and a half times the total investment amount funded. The tiered royalty will begin in the low double digits and decrease to the low single digits upon the achievement of certain annual revenue thresholds. Applicable revenue includes net sales made by Spero (but not its licensees) worldwide and any payments received by the Company from its licensees on net sales outside the United States. “HealthCare Royalty Partners® is a premier investment firm, and we are thrilled with our newly announced partnership,” said Ankit Mahadevia, M.D., Chief Executive Officer of Spero Therapeutics. “It provides both validation for tebipenem HBr’s commercial opportunity and non-dilutive capital that preserves our financial flexibility. As we move toward an anticipated NDA submission in the fourth quarter and prepare for tebipenem HBr’s expected launch, these fu...