SPERO THERAPEUTICS INC (NASDAQ: SPRO)

SPERO THERAPEUTICS INC (ticker: SPRO, exchange: NASDAQ Global Market) is a clinical-stage biopharmaceutical company headquartered in Cambridge, Massachusetts. Founded in 2013, the company focuses on developing therapies for rare diseases and multi-drug resistant (MDR) bacterial infections.

1. Corporate Structure

• Headquarters: Cambridge, MA, United States
• Incorporation: Delaware
• Employees: 11–50 (per LinkedIn)
• Executive Leadership:
  • Esther Rajavelu, President & Chief Executive Officer (appointed May 2, 2025; served as Interim CEO since January 10, 2025; CFO since November 2023)
  • Frank Thomas, Chairman of the Board (appointed January 10, 2025)
• Board Composition: Consists of industry executives and scientific leaders with experience in biotech, finance, and commercial operations
• Transfer Agent: Computershare
• Independent Auditor: PwC

2. Pipeline and Partnerships

• Collaboration: Exclusive licensing agreement with GlaxoSmithKline for tebipenem HBr (all territories except certain Asian markets)
• ESG Focus: Working on comprehensive reporting and sustainable practices

3. Key Developments

• December 31, 2024: PIVOT-PO Phase 3 trial of tebipenem HBr surpassed 60% enrollment
• January 10, 2025:
  • Esther Rajavelu named Interim President & CEO
  • Frank Thomas named Board Chairman
  • Company disclosed receipt of a Wells Notice from the SEC regarding disclosures in 2022
• April 28, 2025: Esther Rajavelu confirmed as President & CEO effective May 2, 2025; will join the Board of Directors
• May 28, 2025: Form 8-K filed covering updates to Items 7.01, 8.01, and 9.01 (SEC)
• Projected Enrollment Completion: Second half of 2025 for PIVOT-PO trial

4. Financial and Strategic Analysis

Share Data (as of 2025-05-30)

• Price: USD 2.6910
• Daily Change: +26.34%
• Volume: 13,430,937 shares

Select Metrics (TTM or Most Recent)

• Market Capitalization (intraday): USD 150.5 million
• Enterprise Value: USD 74.2 million
• Price/Sales: 4.10
• Price/Book: 3.52
• Revenue (TTM): USD 44.6 million
• Net Loss (TTM): USD 69.8 million
• EPS (TTM): –1.28
• Profit Margin: –156.5%
• Total Cash (MRQ): USD 48.9 million
• Total Debt/Equity: 11.7%
• Levered Free Cash Flow (TTM): –USD 19.0 million
• Beta (5Y Monthly): 0.23

Cash Runway

• Cash and equivalents: USD 52.9 million (as of December 31, 2024; unaudited)
• Guidance: Sufficient to fund operations into mid-2026, including milestone payments from GSK and other non-dilutive commitments

Strategic Priorities

• Advance tebipenem HBr through PIVOT-PO to support New Drug Application (NDA)
• Initiate SPR206 Phase 2 trial, subject to non-dilutive funding
• Evaluate next steps for SPR720 following Phase 2a results and safety assessment

5. Market Position and Industry Context

• Therapeutic Focus: Rare diseases and serious infectious diseases with high unmet need
• Competitive Landscape: Few oral carbapenem candidates; tebipenem HBr could be the first if approved
• Regulatory Environment:
  • Special Protocol Assessment (SPA) with FDA for PIVOT-PO design
  • Ongoing engagement with SEC regarding historical disclosures
• Investor Considerations:
  • Risk profile typical of clinical-stage biotech (regulatory, trial enrollment, funding)
  • Low correlation to broad markets (beta 0.23)
  • Potential milestone and royalty streams from collaboration agreements

tl;dr

• Leadership Update: Esther Rajavelu confirmed as President & CEO on May 2, 2025; Frank Thomas appointed Board Chairman on January 10, 2025.
• Pipeline Progress: PIVOT-PO Phase 3 trial of tebipenem HBr is over 60% enrolled (as of December 31, 2024) and on track to finish in the second half of 2025.
• Financial Position: Cash runway into mid-2026, USD 52.9 million cash balance (unaudited) and non-dilutive funding commitments.
• Stock Movement: Shares at USD 2.6910 on May 30, 2025, reflecting market response to business updates.
• Outlook: Key upcoming milestones include full enrollment of PIVOT-PO and potential initiation of SPR206 Phase 2 trial.