Spero Therapeutics, Inc. (NASDAQ: SPRO)

Spero Therapeutics, Inc. is a clinical stage biopharmaceutical company focused on identifying and developing novel treatments for rare diseases and diseases with high unmet need. Since its inception in 2013 the company has concentrated its efforts and financial resources on acquiring and developing product and technology rights building its intellectual property portfolio and conducting research and development activities for its product candidates. The firm does not have any products approved for sale and has not generated any revenue from product sales.

Spero Therapeutics generates revenue primarily through license agreements milestone payments royalties and government grants. Under its agreement with GlaxoSmithKline the company received an upfront cash payment and is eligible to receive development sales and commercial milestones as well as low single digit to low double digit tiered royalties on net product sales. Additionally the company has entered into collaborations with Meiji Everest Pfizer and Vertex that provide milestone payments and potential royalties. Government awards from BARDA NIAID CARB-X SBIR and the Department of Defense also contribute to the company's revenue stream.

Within the biopharmaceutical industry Spero Therapeutics operates in a highly competitive environment that includes large pharmaceutical companies specialty biotechnology firms and generic drug manufacturers. Its primary competitive advantage lies in developing tebipenem HBr which if approved would be the first oral carbapenem for the treatment of complicated urinary tract infections. The drug benefits from a Qualified Infectious Disease Product designation and a fast track designation from the FDA which may accelerate review and provide regulatory exclusivity extensions. The partnership with GlaxoSmithKline provides access to substantial development and commercialization resources while allowing Spero to retain royalty interests.

Spero Therapeutics serves collaborators and partners rather than a traditional end user customer base. Key partners include GlaxoSmithKline with whom it licenses tebipenem HBr Meiji which holds rights in certain Asian territories Everest which has rights in Greater China South Korea and Southeast Asia Pfizer which previously held rights to SPR206 and Vertex which provided know how for SPR720. The company also receives funding from government agencies such as BARDA NIAID CARB-X SBIR and the Department of Defense.