Spero Therapeutics Stock Surges On $40M Equity Funding, SPR206 Licensing Pact With Pfizer

Spero Therapeutics Inc SPRO announced that Pfizer Inc PFE would contribute $40 million to the company through its Breakthrough Growth Initiative focusing on advancing patient care.
Pfizer acquired around 2.4 million SPRO shares at $16.93 per share.
Spero will use the proceeds to prepare for potential approval and launch of tebipenem HBr, continue the clinical development of both SPR720 and SPR206.
The two parties have also entered into a licensing agreement for SPRO’s polymyxin product candidate SPR206 for treating severe multi-drug resistant (MDR) Gram-negative infections in hospitals.
Spero has granted Pfizer the rights to develop, manufacture, and commercialize SPR206 in ex-U.S. and ex-Asia territories.
These rights entitle SPRO to up to $80 million in milestones and royalties on SPR206 net sales in these territories, ranging from high single digits to low double digits.
Spero believes that the net proceeds from the newly announced equity investment will extend its cash runway into the second half of 2022.
Price Action: SPRO shares are up 26.4% at $17.65 during the premarket session on the last check Thursday, while PFE stock closed at $39.16 on Wednesday.