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1. Company Snapshot

1.a. Company Description

Spero 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.

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1.b. Last Insights on SPRO

Recent negative drivers behind Spero Therapeutics' performance include a Q3 loss of $0.32 per share, lagging revenue estimates, and a Wells Notice from the SEC relating to certain public disclosures made in 2022. The company's Phase 3 PIVOT-PO trial of Tebipenem HBr has been impacted by leadership changes, with Esther Rajavelu appointed as Interim President and CEO, and Frank Thomas appointed as Chairman of the Board. Additionally, the company's cash balance and cash runway guidance remains into mid-2026, but the recent leadership changes and SEC notice may have created uncertainty and negatively impacted investor sentiment.

1.c. Company Highlights

2. Spero Therapeutics' Q2 2025 Earnings: A Closer Look

The company's Q2 2025 revenue rose to $14.2M from $10.2M in Q2 2024, driven by its collaboration with GSK. The net loss narrowed to $1.7M, or $0.03 per share, from $17.9M, or $0.33 per share, in the same period last year. The actual EPS of -$0.03 beat estimates of -$0.38. Research and development expenses decreased to $10.7M from $23.7M due to reduced trial costs. As of June 30, cash and equivalents totaled $31.2M, with an additional $23.8M in non-contingent GSK payments expected.

Publication Date: Sep -08

📋 Highlights
  • Tebipenem HBr Phase III Success: Met primary endpoint in 1,690-patient trial, showing non-inferiority to IV imipenem-cilastatin; FDA submission planned for late 2025 with potential $351M in milestones.
  • Financials Improved: Q2 2025 revenue rose to $14.2M (vs. $10.2M in 2024); net loss narrowed to $1.7M ($0.03/share) from $17.9M ($0.33/share) due to reduced R&D costs.
  • Cash Runway Extended: $31.2M in cash as of June 30, 2025, with $23.8M in noncontingent GSK payments, extending runway to 2028.
  • SPR720 Trial Failure: Phase IIa for NTM-PD failed primary endpoint, with insufficient separation from placebo and 3 cases of hepatotoxicity in high-dose cohorts.
  • Market Potential Highlighted: Tebipenem targets $6B/year cUTI market, offering oral alternative to IV carbapenems for 2.9M annual U.S. cases.

Valuation Metrics

With a P/S Ratio of 2.77 and an EV/EBITDA of -1.5, the market seems to be pricing in significant growth potential, despite the current negative earnings. The ROE and ROIC are both negative, at -122.21% and -117.29%, respectively, indicating that the company is still in a phase of heavy investment.

Tebipenem HBr Update

Spero Therapeutics announced that its Phase III PIVOT-PO trial for Tebipenem HBr met its primary endpoint, achieving non-inferiority to IV imipenem-cilastatin based on 1,690 patients. The company plans to submit results for publication and regulatory filings by late 2025, with potential FDA action by 2026. Spero is eligible for up to $351M in milestones, including $25M upon filing submission, and royalties.

SPR720 Program Status

SPR720, a Phase IIa candidate for NTM-PD, failed its primary endpoint, showing insufficient separation from placebo and dose-limiting hepatotoxicity in high-dose cohorts. Spero is evaluating next steps for this program.

Capital Allocation Strategy

Capital allocation remains focused on advancing Tebipenem to approval, as the company emphasized Tebipenem's potential to fill a critical unmet need as an oral alternative to IV carbapenems for cUTIs. Analysts estimate next year's revenue growth at -98.5%, indicating a challenging year ahead, but the current cash runway extension to 2028 provides a comfortable cushion.

3. NewsRoom

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Spero Therapeutics Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Nov -28

Source: globenewswire.com

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Spero Therapeutics Announces Third Quarter 2025 Operating Results and Provides a Business Update

Nov -13

Source: globenewswire.com

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Spero Therapeutics to Report Third Quarter 2025 Financial Results and Provide Business Update on November 13, 2025

Nov -04

Source: globenewswire.com

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PIVOT-PO Phase 3 Data Show Tebipenem HBr's Potential as the First Oral Carbapenem Antibiotic for Patients with Complicated Urinary Tract Infections (cUTIs)

Oct -21

Source: globenewswire.com

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Spero Therapeutics Announces Presentations on Tebipenem Hbr at IDWeek

Oct -14

Source: globenewswire.com

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Best Momentum Stock to Buy for October 10th

Oct -10

Source: zacks.com

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Down 17.7% in 4 Weeks, Here's Why Spero Therapeutics (SPRO) Looks Ripe for a Turnaround

Aug -19

Source: zacks.com

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Spero Therapeutics, Inc. (SPRO) Q2 2025 Earnings Call Transcript

Aug -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Novel Treatments for Multi-drug Resistant Bacterial Infections

Expected Growth: 3.0%

Spero Therapeutics' novel treatments for multi-drug resistant bacterial infections drive 3.0% growth, fueled by increasing antibiotic resistance, rising healthcare costs, and growing demand for effective infection treatments. Strong pipeline, strategic partnerships, and regulatory support also contribute to growth.

7. Detailed Products

Tebipenem HBr

An oral carbapenem antibiotic for the treatment of complicated urinary tract infections (cUTI) and acute pyelonephritis (AP).

SPR720

An oral antibiotic being developed for the treatment of non-tuberculous mycobacterial (NTM) lung disease.

SPR206

An intravenous (IV) antibiotic being developed for the treatment of multidrug-resistant (MDR) Gram-negative bacterial infections.

SPR741

An oral antibiotic being developed for the treatment of MDR Gram-negative bacterial infections.

8. Spero Therapeutics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Spero Therapeutics, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the ongoing research and development in the pharmaceutical industry.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Spero Therapeutics, Inc.'s products, which are often prescribed by healthcare professionals.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market, but Spero Therapeutics, Inc.'s dependence on a few critical suppliers increases their bargaining power.

Threat Of New Entrants

The threat of new entrants is high due to the growing demand for antibiotics and the increasing investment in research and development in the pharmaceutical industry.

Intensity Of Rivalry

The intensity of rivalry is moderate due to the presence of several established players in the market, but Spero Therapeutics, Inc.'s focus on niche areas reduces the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.93%
Debt Cost 3.95%
Equity Weight 95.07%
Equity Cost 7.04%
WACC 6.89%
Leverage 5.19%

11. Quality Control: Spero Therapeutics, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Catalyst Pharmaceuticals

A-Score: 5.8/10

Value: 5.4

Growth: 9.8

Quality: 9.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

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Innoviva

A-Score: 4.7/10

Value: 4.9

Growth: 5.4

Quality: 6.6

Yield: 0.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Spero Therapeutics

A-Score: 4.5/10

Value: 7.0

Growth: 6.2

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 0.0

1-Year Total Return ->

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MEI Pharma

A-Score: 4.5/10

Value: 7.6

Growth: 4.8

Quality: 5.2

Yield: 5.0

Momentum: 3.0

Volatility: 1.3

1-Year Total Return ->

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Armata Pharmaceuticals

A-Score: 4.4/10

Value: 8.0

Growth: 4.6

Quality: 6.1

Yield: 0.0

Momentum: 8.0

Volatility: 0.0

1-Year Total Return ->

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Heron Therapeutics

A-Score: 3.6/10

Value: 7.4

Growth: 6.2

Quality: 5.1

Yield: 0.0

Momentum: 1.0

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.26$

Current Price

2.26$

Potential

-0.00%

Expected Cash-Flows