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Spero Therapeutics Inc (SPRO)
NASDAQ:SPRO
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Spero Therapeutics (SPRO) AI Stock Analysis

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SPRO

Spero Therapeutics

(NASDAQ:SPRO)

Rating:48Neutral
Price Target:
Spero Therapeutics is currently facing significant financial and operational challenges, as evidenced by declining revenues, negative profit margins, and operational inefficiencies. Technical analysis suggests ongoing bearish momentum, while valuation metrics highlight financial struggles due to a negative P/E ratio. The earnings call highlighted promising developments in their tebipenem HBr program, but these are offset by setbacks in other trials and increased financial losses. The overall score reflects these mixed but predominantly negative factors.
Positive Factors
Clinical Trials
The Phase 3 trial of tebipenem in cUTI met its primary endpoint and was stopped early for efficacy.
Financial Milestones
SPRO will receive up to $351 million in additional development, sales, and commercial milestones, along with royalties on net product sales.
Regulatory Approval
The FDA has indicated that positive results from the PIVOT-PO trial, along with data from prior clinical trials, would be sufficient for approval of tebipenem in cUTI.
Negative Factors
Financial Performance
SPRO reported a net loss of $1.7 million for the second quarter.
Net Losses
SPRO reported 1Q25 net loss of $13.9M.
Research and Development Costs
Due to the trial stopping early at ~64% of full enrollment, driving lower R&D costs, SPRO will now not receive the full $150M but a prorated amount closer to ~$96M.

Spero Therapeutics (SPRO) vs. SPDR S&P 500 ETF (SPY)

Spero Therapeutics Business Overview & Revenue Model

Company DescriptionSpero Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on identifying, developing, and commercializing treatments for multi-drug resistant (MDR) bacterial infections and rare diseases in the United States. The company's product candidates include tebipenem pivoxil hydrobromide (HBr), an oral carbapenem-class antibiotic to treat complicated urinary tract infections, including pyelonephritis for adults; SPR206, a direct acting IV-administered agent to treat MDR Gram-negative bacterial infections in the hospital; and SPR720, an oral antibiotic for the treatment of non-tuberculous mycobacterial pulmonary disease. It has license agreement with Meiji Seika Pharma Co., Ltd. to support the development of tebipenem HBr; license agreement with Everest Medicines to develop, manufacture, and commercialize SPR206 in Greater China, South Korea, and Southeast Asian countries; collaboration agreement with Bill & Melinda Gates Medical Research Institute to develop SPR720 for the treatment of lung infections caused by Mycobacterium tuberculosis; and license agreement with Vertex Pharmaceuticals Incorporated for patents relating to SPR720, as well as SPR719, an active metabolite. The company was founded in 2013 and is headquartered in Cambridge, Massachusetts.
How the Company Makes MoneySpero Therapeutics makes money primarily through the development and commercialization of its proprietary antibiotics. Revenues are generated through partnerships, collaborations, and licensing agreements with other pharmaceutical companies and organizations, which provide funding for the development of its drug candidates. These partnerships often involve milestone payments, royalties, and shared profits from successfully developed products. Additionally, the company may receive grants and research funding from government and non-profit entities to support its research and development efforts. Key factors contributing to Spero's earnings include the successful progression of its drug candidates through clinical trials and eventual regulatory approval and commercialization.

Spero Therapeutics Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with significant achievements, particularly the successful Phase III trial for Tebipenem HBr and the improved financial metrics. However, challenges remain in the SPR720 program. Overall, the positive developments notably outweigh the negative aspects.
Q2-2025 Updates
Positive Updates
Successful Phase III PIVOT-PO Trial for Tebipenem HBr
The Phase III PIVOT-PO trial evaluating Tebipenem HBr for complicated urinary tract infections met its primary endpoint and was stopped early for efficacy, demonstrating non-inferiority to intravenous imipenem-cilastatin.
Extended Cash Runway
With the trial stopping early for efficacy, Spero achieved meaningful cost savings, extending the cash runway into 2028 based on their current operating plan.
Increased Revenue
Total revenue for the second quarter of 2025 was $14.2 million compared to $10.2 million for the second quarter of 2024, primarily due to collaboration revenue from GSK.
Reduction in Net Loss
Spero reported a net loss of $1.7 million for the second quarter of 2025 compared to a net loss of $17.9 million for the second quarter of 2024.
Significant R&D Expense Reduction
R&D expenses for the second quarter of 2025 were $10.7 million compared to $23.7 million for the same period in 2024, primarily due to reduced clinical expense related to the PIVOT-PO study.
Negative Updates
SPR720 Trial Challenges
The Phase IIa proof-of-concept study for SPR720 did not meet its primary endpoint, and there were potential dose-limiting safety signals, including reversible grade 3 hepatotoxicity in the high-dose cohort.
Increased G&A Expenses
G&A expenses for the second quarter of 2025 were $5.9 million compared to $5.5 million for the same period in 2024, mainly due to increased personnel and professional services expenses.
Company Guidance
During Spero Therapeutics' second quarter 2025 earnings call, significant progress was highlighted, particularly in their lead clinical program for Tebipenem HBr targeting complicated urinary tract infections (cUTIs). The Phase III PIVOT-PO trial was stopped early for efficacy, demonstrating Tebipenem HBr's non-inferiority to intravenous imipenem-cilastatin, with primary endpoint achievement noted in a test of cure visit. The trial's early conclusion resulted in cost savings, extending the company's cash runway into 2028. Financially, Spero reported a second-quarter revenue of $14.2 million, up from $10.2 million in the prior year, mainly due to collaboration revenue from GSK. R&D expenses decreased from $23.7 million to $10.7 million year-over-year, while G&A expenses slightly increased to $5.9 million. The net loss narrowed significantly to $1.7 million from $17.9 million in the previous year, with a diluted net loss per share of $0.03 compared to $0.33. Looking ahead, Spero focuses on regulatory approval of Tebipenem HBr, with FDA action anticipated in the second half of 2026, supported by contingent milestone opportunities with GSK, potentially totaling $351 million.

Spero Therapeutics Financial Statement Overview

Summary
Spero Therapeutics faces significant financial challenges, particularly in profitability and cash flow management. Revenue instability and negative net income margins highlight operational inefficiencies. Although the balance sheet remains stable with manageable debt levels, the decline in equity ratio and return on equity suggests potential financial stress. The company's cash flow position indicates ongoing operational cash constraints, necessitating strategic adjustments to enhance financial performance.
Income Statement
55
Neutral
Spero Therapeutics experienced significant revenue volatility with a decline from $96.7M in 2023 to $47.9M in 2024. The gross profit margin was stable at 100% due to cost alignment with revenue. However, the net profit margin deteriorated from 23.6% to -142.9% over the same period, indicating challenges in managing costs and expenses. EBIT and EBITDA margins also turned negative, reflecting operational inefficiencies.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio improved from 0.05 in 2023 to 0.09 in 2024, showcasing a manageable debt level relative to equity. However, the return on equity fell drastically from 21.3% to -148.6%, which suggests a reduction in shareholder value. The equity ratio decreased from 58.6% to 41.7%, indicating a weaker financial position with increased liabilities.
Cash Flow
50
Neutral
Free cash flow remained negative but improved slightly from -$33M to -$23.4M in 2024. The operating cash flow to net income ratio was negative, reflecting cash flow challenges from operations. Despite these issues, the company managed cash reserves, maintaining a relatively stable cash position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue40.50M27.40M96.73M48.58M18.26M9.33M
Gross Profit40.50M27.39M96.37M5.92M17.14M-57.67M
EBITDA-56.53M-72.48M25.77M-42.26M-87.17M-76.93M
Net Income-54.47M-68.57M22.81M-46.41M-89.76M-78.28M
Balance Sheet
Total Assets62.12M110.54M182.39M124.80M171.07M153.45M
Cash, Cash Equivalents and Short-Term Investments31.19M52.89M76.33M109.11M146.40M126.91M
Total Debt3.62M4.30M5.54M6.65M55.75M7.84M
Total Liabilities29.29M64.42M75.50M48.87M82.78M21.41M
Stockholders Equity32.83M46.12M106.89M75.93M88.29M132.04M
Cash Flow
Free Cash Flow-32.33M-23.44M-32.99M-7.73M-64.31M-86.03M
Operating Cash Flow-32.33M-23.44M-32.99M-7.73M-64.35M-85.87M
Investing Cash Flow0.000.000.0033.81M7.67M10.47M
Financing Cash Flow0.000.00221.00K-29.55M84.05M130.88M

Spero Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.15
Price Trends
50DMA
2.33
Negative
100DMA
1.91
Positive
200DMA
1.41
Positive
Market Momentum
MACD
-0.05
Negative
RSI
53.97
Neutral
STOCH
86.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRO, the sentiment is Positive. The current price of 2.15 is above the 20-day moving average (MA) of 2.00, below the 50-day MA of 2.33, and above the 200-day MA of 1.41, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 86.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPRO.

Spero Therapeutics Risk Analysis

Spero Therapeutics disclosed 69 risk factors in its most recent earnings report. Spero Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Spero Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.92B-0.43-41.67%2.21%22.29%-1.85%
49
Neutral
$114.49M-58.89%
48
Neutral
$120.43M10.83-94.59%-67.67%-390.60%
45
Neutral
$263.74M-58.34%61.73%
39
Underperform
$151.29M-780.29%20.13%
39
Underperform
$308.18M-29.24%-125.92%
36
Underperform
$202.09M-85.21%38.94%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPRO
Spero Therapeutics
2.15
0.78
56.93%
MIST
Milestone Pharmaceuticals
1.80
0.36
25.00%
KRRO
Korro Bio
33.18
-5.30
-13.77%
CNTB
Connect Biopharma Holdings
1.75
0.49
38.89%
TNYA
Tenaya Therapeutics
1.35
-1.06
-43.98%
CTNM
Contineum Therapeutics, Inc. Class A
11.50
-5.94
-34.06%

Spero Therapeutics Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Spero Therapeutics Appoints New CEO Esther Rajavelu
Neutral
Apr 28, 2025

On April 28, 2025, Spero Therapeutics announced the appointment of Esther Rajavelu as President and Chief Executive Officer, effective May 2, 2025. Rajavelu, who has been serving as Interim President and CEO since January 2025, will also continue her roles as Chief Financial Officer and Treasurer. This leadership transition follows the mutual separation of former CEO Sath Shukla, who will step down on the same effective date. The company is focused on advancing its PIVOT-PO Phase 3 trial for tebipenem HBr, with Rajavelu’s leadership expected to strengthen Spero’s strategic initiatives and partnerships, particularly with GSK.

Spark’s Take on SPRO Stock

According to Spark, TipRanks’ AI Analyst, SPRO is a Neutral.

Spero Therapeutics is currently facing financial and operational challenges, highlighted by declining revenues and increased losses. The financial performance and technical analysis suggest a cautious outlook, while the earnings call provides some optimism through strategic partnerships and potential milestone payments. However, the negative valuation metrics and recent clinical trial setbacks weigh heavily on the stock score, resulting in an overall score of 53.

To see Spark’s full report on SPRO stock, click here.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 30, 2025