SPRO

Spero Therapeutics Announces $105 Million Non-Recourse Non-Dilutive Financing Backed by a Portion of Utebzi Milestones & Royalties

Spero secures $105M non-dilutive royalty financing to fund SP001 development

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    <h3>Information</h3>
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    <h3>AI Summary</h3>
    <p>SPRO announced a $105 million non-recourse, non-dilutive royalty financing with HealthCare Royalty (KKR) to support SP001, its Fc-silent anti-CD40L program. The deal unlocks near-term value from Utebzi milestones and royalties and extends cash runway into 2H 2029, with 35% of future GSK payments retained after repayment. It builds SPRO’s immunology strategy alongside Innovent licensing for SP001.</p>
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    <h3>Key Points</h3>
    <ul><li>SPRO secures $105M non-recourse royalty financing from HealthCare Royalty (KKR). Funds support SP001.</li><li>Deal preserves upside: 35% of future GSK payments after repayment.</li><li>HCRx gets Utebzi milestone rights; U.S. approval boosts value.</li><li>Cash runway updated to 2H 2029, reducing near-term dilution risk.</li><li>SP001 is Fc-silent anti-CD40L; SPRO targets immune diseases.</li></ul>
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    <h3>Companies Mentioned</h3>
    <ul><li><strong>Spero Therapeutics (SPRO)</strong>: Announced $105M non-recourse financing; SP001 development funding and pipeline upside.</li><li><strong>HealthCare Royalty Partners (HCRx) (HCRx)</strong>: Provided $105M non-recourse financing; rights to Utebzi payments; affiliate of KKR.</li><li><strong>GlaxoSmithKline (GSK)</strong>: Exclusive license to develop Utebzi; revenue payments tied to Utebzi sales.</li><li><strong>Innovent Biologics (N/A)</strong>: Exclusive license for SP001; Asia rights not specified here; supports SPRO&#039;s immunology strategy.</li></ul>
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    <h3>Corporate Developments</h3>
    <p>Category: Corporate Developments. Financing and licensing moves directly affect SPRO&#039;s capital structure and pipeline trajectory.</p>
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    <h3>Market-Moving</h3>
    <ul><li>Non-dilutive capital reduces dilution risk.</li><li>Cash runway extended to 2H 2029.</li><li>Utebzi milestones/royalties unlock long-term upside.</li><li>Innovent SP001 license and Utezi timing could attract partnerships.</li></ul>
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    <h3>Key Facts</h3>
    <ul><li>$105 million closing payment, net of original issue discount and fees.</li><li>35% of future GSK payments retained after loan repayment.</li><li>Cash runway guidance extended to second half of 2029.</li><li>SP001 is a third-generation Fc-silent anti-CD40L mAb; Phase 2-ready.</li><li>FDA approved Utebzi for complicated UTIs in June 2026; exclusive license with Innovent.</li></ul>
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    <h3>Trading Thesis</h3>
    <p>Bullish over 6-12 months as non-dilutive funding strengthens SPRO&#039;s balance sheet and SP001 timeline.</p>
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  <p>Spero Therapeutics, Inc. (NASDAQ: <strong>SPRO</strong>) today announced a <strong>$105 million</strong> non-recourse non-dilutive royalty financing with affiliates of <em>HealthCare Royalty</em>, a business of KKR (HCRx). The financing backs the advancement of SP001, Spero’s lead immunology drug candidate, a <strong>Phase 2-ready</strong>, Fc-silent, third-generation anti-CD40L monoclonal antibody in-licensed from Innovent Biologics. Proceeds are intended to support SP001 development and unlock value from future Utebzi milestones and royalties, while positioning SPRO for potential long-term commercial upside.</p>

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    <li><em>Financing supports Phase 2 development of SP001, Spero’s first immunology drug candidate, in-licensed from Innovent Biologics</em></li>
    <li><em>Transaction unlocks immediate value from future Utebzi (tebipenem pivoxil) milestones and royalties, and positions Spero to participate in potential long-term commercial upside</em></li>
    <li><em>Spero updates its cash runway guidance into the second half of 2029</em></li>
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    <h2>Transaction Overview and Strategic Rationale</h2>
    <p>In conjunction with the closing, Spero entered into a financing arrangement under which <strong>HealthCare Royalty</strong> will receive a portion of future milestone and royalty payments associated with sales of <strong>Utebzi</strong> (tebipenem pivoxil). The proceeds will primarily be used to support advancement of SP001, Spero’s immunology program. SP001 is described as a Fc-silent monoclonal antibody with potential applicability across a range of immune-mediated diseases.</p>
    <p>“Over the past year, in collaboration with GSK, we successfully advanced Utebzi through FDA approval, while executing on our strategy to strengthen Spero and position the Company for its next phase of growth. This transaction further strengthens our balance sheet and provides non-dilutive capital as we embark on an immunology-focused strategy," said Esther Rajavelu, President and Chief Executive Officer of Spero Therapeutics. "By unlocking immediate value from a portion of future Utebzi milestone and royalty streams, we are well positioned to execute on the clinical development for SP001 and continue building a differentiated pipeline for patients with immune-mediated diseases."</p>
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    <h2>Key Terms of the Financing Agreement</h2>
    <p>The financing was completed concurrently with an exclusive license agreement with Innovent Biologics for the SP001 asset and follows last month’s U.S. approval of Utebzi for complicated urinary tract infections. Spero granted GSK exclusive rights to develop and commercialize Utebzi in all territories, except certain Asia territories where Meiji holds development and commercialization rights. Following the transaction, Spero updates its cash runway guidance into the second half of 2029.</p>
    <p>"We are pleased to partner with Spero on this acquisition of certain Utebzi milestones and royalties. As the first approved oral carbapenem therapy, Utebzi represents a meaningful innovation and value proposition for patients, physicians and payers," said Clarke Futch, Chairman and CEO of HealthCare Royalty.</p>
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    <h2>Detailed Terms of the Agreement</h2>
    <p><strong>Terms of the Agreement</strong><br/>
      Under the terms of the agreements, HCRx will provide Spero with a <strong>$105 million</strong> payment at closing, net of original issue discount and applicable fees, in exchange for rights to anticipated payments from sales of Utebzi owing from GSK. HCRx will receive quarterly principal and interest payments, derived solely from the GSK payments due to Spero, until the loan balance is repaid. Following repayment, Spero will retain <strong>35%</strong> of subsequent GSK payments related to sales of Utebzi, preserving potential long-term upside from the asset.
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    <p>J. Wood Capital Advisors acted as Spero’s exclusive financial adviser and WilmerHale acted as legal advisor to Spero on the financing transaction. Sidley Austin LLP acted as legal advisor to HCRx.</p>
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    <h2>About SP001</h2>
    <p><strong>SP001</strong> is a third-generation, fully humanized, Fc-silent IgG1 monoclonal antibody targeting <strong>CD40L</strong>, an upstream immune activation signal involved in T-cell, B-cell, antigen-presenting cell, and platelet biology. By blocking CD40L, SP001 has the potential to provide a targeted non-B-cell-depleting treatment across multiple immune-mediated diseases where immune-cell interactions drive chronic inflammation, relapse, and tissue damage. SP001 is designed to address platelet activation concerns associated with earlier anti-CD40L antibodies, while preserving key monoclonal antibody properties, including FcRn interaction that supports IgG-like half-life.</p>
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    <h2>About HealthCare Royalty (HCRx)</h2>
    <p>HealthCare Royalty (<em>“HCRx”</em>) is a leading royalty acquisition company founded in 2006 that is majority owned by KKR. Over two decades, the HCRx team has invested in commercial-stage and near-commercial-stage biopharmaceutical assets, committing $7+ billion in over 110 biopharmaceutical products. With offices in New York, Stamford, San Francisco, Boston, London and Miami, HCRx continues to advance biopharmaceutical innovation by providing innovative capital solutions. For more information, visit <em>https://www.hcrx.com</em>.</p>
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    <h2>About Spero Therapeutics</h2>
    <p>Spero Therapeutics is a clinical-stage biopharmaceutical company focused on advancing next-generation medicines in immunology and inflammation for patients with serious diseases and major treatment gaps. The company’s lead program, SP001, is a third-generation, Fc-silent anti-CD40L monoclonal antibody being advanced first in IgG4-related disease, with a broad potential for additional immune-related conditions. For more information, visit <em>SperoTx.com</em>.</p>
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    <h2>Forward-Looking Statements</h2>
    <p>This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include, but are not limited to, statements relating to the anticipated benefits of the non-dilutive royalty-backed transaction, including the anticipated use of proceeds; Spero’s expectations regarding its ability to advance SP001 into clinical development and the potential benefits thereof; anticipated cash runway, and future milestones; and the potential benefits of Spero’s agreement with Innovent. Forward-looking statements are based on Spero’s current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and unce...</p>
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SPRO announced a $105 million non-recourse, non-dilutive royalty financing with HealthCare Royalty (KKR) to support SP001, its Fc-silent anti-CD40L program. The deal unlocks near-term value from Utebzi milestones and royalties and extends cash runway into 2H 2029, with 35% of future GSK payments retained after repayment. It builds SPRO’s immunology strategy alongside Innovent licensing for SP001.

Spero Therapeutics Announces $105 Million Non-Recourse Non-Dilutive Financing Backed by a Portion of Utebzi Milestones & Royalties

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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