Spero Therapeutics ((SPRO)) has held its Q4 earnings call. Read on for the main highlights of the call.
Spero Therapeutics’ recent earnings call revealed a mixed sentiment, highlighting both the promising advancements in their tebipenem HBr program and the challenges faced with SPR720 trial results and financial performance. The company is making strategic moves with potential but is also grappling with decreased revenue and increased losses.
Advancement of Tebipenem HBr Program
Spero Therapeutics is making significant strides with its tebipenem HBr program, announcing a prespecified interim analysis in the Phase 3 PIVOT-PO clinical trial. This trial, expected to be completed by the second quarter of 2025, aims to revolutionize the treatment of complicated urinary tract infections (cUTI) by introducing an oral treatment option. The potential success of this program could significantly impact the current treatment paradigm.
Financial Position and Milestones
As of the end of 2024, Spero reported having $52.9 million in cash and equivalents. The company anticipates that these funds, along with development milestones from their partnership with GSK, will sustain operations into the second quarter of 2026. The partnership with GSK holds the potential for milestone payments totaling approximately $400 million, contingent upon regulatory and commercialization achievements.
Pipeline and Strategic Partnerships
Spero’s collaboration with GSK on the tebipenem HBr program is a key strategic partnership. GSK is expected to take over the regulatory and commercialization responsibilities, which could lead to substantial milestone payments if the program is successfully executed.
SPR720 Phase IIa Trial Results
The SPR720 study faced setbacks as it did not meet its primary endpoint, showing insufficient separation from placebo. Additionally, potential dose-limiting safety signals were observed, including three cases of reversible grade 3 hepatotoxicity at the 1,000 mg dose. This has prompted a further assessment of the data.
Discontinuation of SPR206 Development
After a thorough review and reprioritization, Spero decided to discontinue the development of SPR206, an IV-administered next-gen polymyxin antibiotic. This decision reflects the company’s strategic focus on its most promising programs.
Decreased Revenue and Increased Losses
Spero reported a total revenue of $48 million for 2024, a significant decrease from $103.8 million in 2023. The company also faced a net loss of $68.4 million for the year, compared to a net income of $22.8 million in the previous year. This downturn is attributed to decreased collaboration revenue and increased research and development expenses.
Forward-Looking Guidance
Looking ahead, Spero Therapeutics provided updates on its clinical programs and financial outlook. The interim analysis for the Phase 3 PIVOT-PO trial of tebipenem HBr is anticipated to conclude in the second quarter of 2025. The company is also assessing the SPR720 study data further due to the observed safety signals. Financially, Spero aims to manage its resources effectively to support ongoing operations and clinical activities.
In summary, Spero Therapeutics’ earnings call presented a blend of optimism and caution. While the company is advancing its tebipenem HBr program with promising potential and strategic partnerships, it faces challenges with its SPR720 trial results and financial performance. The coming years will be critical as Spero navigates these challenges and opportunities.