Spero Therapeutics Inc. shares rose 15% to $16 after the company said Pfizer Inc. made a $40 million equity investment in it as part of its Pfizer Breakthrough Growth Initiative.
The two companies also entered into a licensing agreement for SPR206, Spero's intravenously-administered next-generation polymyxin product candidate being developed to treat serious multi-drug resistant Gram-negative infections in the hospital setting.
Spero said it intends to use the proceeds from the equity investment to prepare for the potential approval and launch of tebipenem HBr, as well as to support the continued clinical development of SPR720 and SPR206.
Pfizer bought 2.4 million common shares of Spero at $16.93 a share.
Spero granted Pfizer the rights to develop, manufacture, and commercialize SPR206 in ex-U.S. and ex-Asia territories. In exchange, Spero is eligible to receive up to $80 million in development and sales milestones, and high single digit to low double-digit royalties on net sales of SPR206.
Based on its current projections, Spero believes that the proceeds from the $40 million equity investment will extend its cash runway into the second half of 2022.
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