Spero Therapeutics Inks Revenue Interest Financing Agreement With HealthCare Royalty Partners

Spero Therapeutics Inc SPRO has entered into a revenue interest financing agreement with HealthCare Royalty Partners for up to $125 million.
Spero will use the proceeds to prepare for the anticipated launch of tebipenem HBr and support the continued clinical development of SPR720 and SPR206.
Under the terms of the agreement, Spero will receive $50 million from HealthCare Royalty Partners in October.
Spero is also entitled to receive an additional $50 million upon the FDA approval of tebipenem HBr for a complicated urinary tract infection and an additional $25 million for the commercial milestone.
HealthCare Royalty Partners will receive a tiered royalty on applicable revenue generated by Spero products 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 certain annual revenue thresholds.
Related: Spero Therapeutics Stock Surges On $40M Equity Funding, SPR206 Licensing Pact With Pfizer.
Price Action: SPRO stock is up 1.38% at $18.43 during the market session on the last check Thursday.